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Centrica is set to take a 15 per cent stake in the UK’s Sizewell C nuclear project after years of delay and months of drawn out negotiations.
All sides are keen to reach a final investment decision on the project before parliament’s recess on July 21, according to people familiar with the discussions.
The final cost of Sizewell — set to be only the second new nuclear plant built in a generation in Britain — could be close to £40bn, the Financial Times reported in January based on assumptions from industry experts. Sizewell’s management has rejected that figure although no new estimate has been given.
The planned investment by Centrica means that the FTSE 100 energy company behind British Gas would have the same size stake in Sizewell C as French state-owned energy group EDF, which has progressively reduced its position in the Suffolk project to 15 per cent. Centrica already holds a 20 per cent stake in the parent company of the entity that operates EDF’s existing nuclear assets in the UK.
Centrica and EDF declined to comment.
The investment in Sizewell could still come in time for French President Emmanuel Macron’s visit to London for an Anglo-French summit on July 8. However, timetables have slipped, according to the people familiar with the situation, putting that goal in doubt.
Brookfield Asset Management is still in talks about a similar investment in Sizewell C and could be prepared to take a larger stake than Centrica, according to people familiar with the discussions. Brookfield declined to comment.
Apollo, the US private capital group, said last week that it would provide £4.5bn in financing to EDF to support the French group’s other main investment in a UK nuclear power plant, at Hinkley Point C in Somerset.
The UK government is focusing on nuclear power to help Britain’s transition to low-carbon electricity with the energy secretary, Ed Miliband, calling it a “golden age” for nuclear power.
The government said in a statement: “By taking back control of our energy we will protect family finances, boost energy security, and tackle the climate crisis.” It added that 10,000 jobs will be created through building Sizewell C.
The UK pledged £11.5bn of new state funding for the Suffolk project earlier this month taking taxpayer investment so far to £17.8bn. The project claims it will provide 7 per cent of the UK’s energy needs for at least 60 years and power 6mn homes as well as creating 70,000 jobs across the supply chain.
Centrica has previously confirmed its interest in the project but chief executive Chris O’Shea declined to give details of the size of stake it could take. In February, O’Shea said the stake could be “between 1 per cent, or 2 per cent and 50 per cent”.
Sizewell C was initially proposed by EDF and China General Nuclear Power Group (CGN) but the UK government owns about 84 per cent of the project after removing CGN in 2022 over concerns about Chinese influence, spending £679mn of taxpayer funds to buy out its stake.
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