British government commits US$810 million to Sizewell C nuclear project, seeks to end Chinese involvement
- Government agreed to take a ‘special share’ earlier this year to help end Chinese funding of the project
- China General Nuclear Power is a minority investor in the Sizewell C project
Prime Minister Boris Johnson has committed £700 million (US$810 million) to take a stake in the proposed Sizewell C nuclear power plant, paving the way for the British government to end Chinese investment in the controversial project.
The project, which is expected to cost about £20 billion and be completed in 2035, has been delayed for several years amid staunch opposition from local campaigners and multiple rounds of public consultations.
It also has been a flashpoint in growing concerns over Chinese involvement in critical infrastructure in Britain, counting China General Nuclear Power as a minority investor.
“We need to pull our national finger out and get on with Sizewell C,” Johnson said in a speech outside the neighbouring Sizewell B power plant.
02:25
‘Will never get down on our knees’: Ukrainians speak 6 months after Russia’s invasion
The commitment will allow French energy giant Electricite de France (EDF) to seek additional investors to help fund the project in eastern England near Suffolk. Barclays and Rothschild & Company have been hired to help elevate investor interest.
The British government signed off on the construction plan for the reactor in July after committing £100 million, with the option to take a larger stake in the project, in January.
EDF wants to build a 3.2 gigawatt power station next to its existing Sizewell B reactor, which has been in operation since 1995. It is expected to employ 900 people and power 6 million homes.
Thursday’s speech was one of Johnson’s last as prime minister and comes as Britain faces a cost-of-living crisis, spurred by sharp rises in energy prices on the back of Russia’s invasion of Ukraine earlier this year.
On Monday, the winner of a leadership race for the ruling Conservative Party will be announced, with Foreign Secretary Liz Truss or Rishi Sunak, the former Chancellor of the Exchequer, named as the new prime minister.
The cost-of-living crisis is expected to be a major issue for whoever wins the leadership contest as the household cap on energy prices is expected to rise to £3,549. That is nearly triple what it was to begin the year and some analysts have predicted the cap could top £7,200 by next April.
Goldman Sachs economists said this week that inflation could reach 22 per cent by early next year if energy prices continue to rise unabated. Inflation was at 10.1 per cent in July.
In his speech, Johnson criticised what he said was the “short-termism” of prior governments and hailed plans to build as many as eight nuclear plants in the coming years to help bolster the country’s energy security.
“It’s a chronic case of politicians not being able to see beyond the political cycle,” he said. “It’s because of that kind of myopia that the country that first split the atom was producing far less energy from nuclear power than France.”
