The UK government has committed £100 million ($134 million) to support the continued development of the Sizewell C nuclear project in Suffolk.
The funding aims to spur development by attracting further private sector investment, ensuring a Final Investment Decision is reached on at least one large-scale nuclear power station this parliament.
Once built, Sizewell C would power the equivalent of around 6 million homes, providing much-needed energy security for the region.
Business and Energy Secretary, Kwasi Kwarteng, said: “In light of high global gas prices, we need to ensure Britain’s future energy supply is bolstered by reliable, affordable, low carbon power that is generated in this country.
“New nuclear is not only an important part of our plans to ensure greater energy independence, but to create high-quality jobs and drive economic growth.”
The £100 million ($134 million) option fee will see the government obtain certain land rights of the Sizewell C site as well as EDF’s shares in the Sizewell C company. Final outcome concerning the assets will be decided upon whether or not a Final Investment Decision is reached.
Simone Rossi, CEO of EDF Energy, said: We’re very pleased that the government is showing its confidence in Sizewell C which, if approved, will lower energy costs for consumers and help to insulate the UK from global gas prices. Together with our own investment, these funds will allow us to continue to move the project towards a financial investment decision.”
According to EDF, Sizewell C will be a near replica of Hinkley Point C in Somerset, UK, a 3,200MWe nuclear power station with two EPR reactors.
In response to the announcement, the Nuclear Industry Association (NIA) has released a statement emphasising the carbon savings delivered by nuclear power. According to their analysis, the UK’s existing nuclear stations have saved £110 billion ($147 billion) worth of carbon at current prices.
The figure is based on the 1.4 billion tonnes of CO2 emissions saved by the AGR stations and Sizewell B.
