Centrica Eyes Major Stake in UK Nuclear Power Project

Centrica, the owner of British Gas, is prepared to take a 15% stake in the UK’s Sizewell C nuclear power plant project, the final investment decision on which is expected shortly, the Financial Times reported on Friday, quoting sources with knowledge of the talks.

Sizewell C was initially proposed years ago by France’s EDF and China General Nuclear Power Group. However, the UK government bought out the Chinese group’s stake in 2022 amid concerns about China’s influence, and is now a shareholder with 84%, with EDF owning the remainder.

Sizewell C is the first British-owned nuclear power station to be announced in over three decades, with the government currently as a majority shareholder alongside EDF.

The UK government has already committed billions of UK pounds of investment in Sizewell C on the Suffolk Coast in east England, including $19.5 billion (£14.2 billion) announced earlier this month to support the project, which is estimated to cost a total of about three times more.

Now the current shareholders and potential new investors aim to reach a final investment decision on the project before July 21, the beginning of Parliament’s recess, according to FT’s sources.

Apart from Centrica, another new shareholder could be Brookfield Asset Management, which continues to be in discussions about an investment in Sizewell C. Brookfield could be ready to take an even larger stake than the 15% which Centrica is eyeing, FT’s sources say.

A year ago, the UK regulator granted nuclear site license to Sizewell C, which was the first such license issued by the Office for Nuclear Regulation since the license granted to Hinkley Point C in 2012.

The UK has been betting big on nuclear power in recent years to boost its energy security and help each net-zero emissions by 2050.

Announcing the government’s massive $19.5 billion investment in Sizewell C this month, Energy Secretary Ed Miliband said that “We need new nuclear to deliver a golden age of clean energy abundance, because that is the only way to protect family finances, take back control of our energy, and tackle the climate crisis.”

Apart from major conventional nuclear power projects, the UK government is supporting Small Modular Reactors (SMR) technology development with competitions to unlock private finance, with a long-term ambition to bring forward one of the first SMR fleets in Europe.?

By Tsvetana Paraskova for Oilprice.com