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The UK will become a 50% shareholder in the Sizewell C nuclear project under a deal with owner Electricite de France (OTCPK:ECIFF) in which it will provide ~£700M ($844M) in development costs, for the country’s first state backing of a nuclear project in more than 30 years.
The funding includes the acquisition of the shares of partner China General Nuclear Power Corp., marking the firm’s exit from the project.
Sizewell will use a funding regulated asset base model where companies building new plants are paid during the construction phase, cutting down their development risk and allowing them to secure cheaper financing.
The government said under its plan, 70% of the value of Sizewell C’s contracts would be placed with British businesses, and it will set up a group to develop a pipeline of new projects beyond Sizewell C.
EDF’s (OTCPK:ECIFF) Hinkley Point C in the UK is expected to come online in 2026; EDF has said Sizewell could cost 20% less than Hinkley, which is currently budgeted at £25B-£26B ($29.9B-$30B).
Separately, EDF (OTCPK:ECIFF) agreed to €2.2B of additional bank loan facilities it said will help financial flexibility in the coming years.
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