In an announcement timed to coincide with French president Emmanuel Macron鈥檚 state visit to London, the government has welcomed 脡lectricit茅 de France鈥檚 (EDF) commitment to invest up to 拢1.1bn in the Sizewell C nuclear power station project in Suffolk.
But it is a substantially lower stake that had once been expected, given EDF鈥檚 involvement to the identical design Hinkley Point C project in Somerset.
EDF initially had an 80% stake in Hinkley Point C, since dilute to 66.5% and had first dibs on Sizewell C. But Hinkley Point C is running way over budget and years late. It was supposed to have cost 拢26bn and complete this year. It is still at least five years from completion and more than 拢30bn has already been spent on it.
EDF neither wants nor can afford a repeat of that.
Cost estimates for Sizewell C range up to 拢40bn, based on Hinkley Point C experience, suggesting EDF is getting a great deal paying just 拢1.1bn, on top of the 拢500m it has already put in, for a 12.5% stake. And Framatome, 80.5% owned by EDF, has already received more than 鈧�1bn of orders for future work on Sizewell C.
Campaigners battling against the Suffolk project are not surprised that EDF鈥檚 ardour for UK nuclear power has cooled.
"As predicted, EDF is taking a very minor stake in Sizewell C, a project consisting of two reactors of a type that France will not build any more of, after the fiasco of Flamanville,鈥� said Alison Downes of Stop Sizewell C. 鈥淭he EPR reactors remain EDF's technology, so Sizewell C is reliant on EDF despite their shockingly poor track record. Such reliance on France for so lengthy and uncertain project delivery undermines UK energy security. With much of the expensive 鈥榢it鈥� for Sizewell C being constructed in France, who does this project really benefit?"
However, the UK government considers it 鈥渁 major boost for UK growth and energy security鈥� that EDF is on board for Sizewell C at all and said it was 鈥渁 vote of confidence鈥� in the project.
Energy secretary Ed Miliband said:聽 鈥淭housands of jobs and clean power for millions of homes are one step closer today as we welcome this investment into Sizewell C 鈥� delivering a golden age of new nuclear to protect family finances and boost energy security. This agreement is a landmark moment in the UK and France鈥檚 long-standing partnership in civil nuclear, and a testament to our countries鈥� strong relationship.鈥�
The UK government has itself already committed 拢14.2bn of public money for the project but it is not confirmed what stake it will be retaining. That depends on deals with other investors that are still being negotiated. According to the Financial Times, Canadian investment firm Brookfield is set to take 20% and Centrica, the parent company of British Gas, will take about 15%, leaving the UK state with majority ownership.聽
French engineering company Assystem has also announced plans to double its nuclear workforce in the UK, creating 1,000 new engineering, digital and management jobs by 2030 across 10 UK sites, including in Sunderland, Blackburn, Derby, Bristol and London.
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