PRESS RELEASE : Sizewell C starts private investment process [September 2023]

The press release issued by the Department for Energy Security and Net Zero on 18 September 2023.

Government opens process for partners to express interest in investing in nuclear revival.

Private investors will have their first chance to come forward and qualify to invest in Sizewell C power station, a key component of the UK’s nuclear revival, from today (Monday 18 September).

Today, the Energy Security Secretary Claire Coutinho confirmed the next stage for the investment process – opening applications for partners to register their interest in being part of the project.

The government, the Sizewell C Company and EDF, the project’s lead developer, are looking for companies with substantial experience in the delivery of major infrastructure projects. This builds on engagement undertaken as the Sizewell C project has developed.

Any investment will also be subject to strict national security checks.

Sizewell C is expected to house 2 of the most powerful nuclear reactors in the world.  It will generate reliable, low-carbon power for up to 6 million homes over 60 years, avoiding 9 million tonnes of carbon each year. At peak construction, it is expected to support 10,000 jobs across the country.

In a show of support, the government has already invested £700 million in the project – the first such direct public investment in a nuclear project for a generation. Ministers have also made £511 million available to continue project development and prepare the Suffolk site for construction, ahead of the planned private equity raise for the project in advance.

The government is delivering a revival of nuclear power by investing in large scale reactors as well as emerging technologies, such as Small Modular Reactors, with the ambition of having up to a quarter of the UK’s electricity generated by nuclear by 2050.

Secretary of State for Energy Security and Net Zero, Claire Coutinho, said:

Investing in Sizewell C is an exciting opportunity to be a part of the UK’s nuclear revival – delivering clean, reliable, and affordable power for generations to come.

This project will create thousands of jobs, power 6 million homes and will boost our energy security.

We are focused on securing good value for taxpayers and look forward to seeing strong and competitive bids to be a part of this exciting project.

Sizewell C Company Joint Managing Director, Julia Pyke, said:

The launch of the formal equity raise opens another exciting phase for the project, following a positive response from investors during market testing.

Investors who participate in Sizewell C would be contributing to one of the biggest clean energy projects in the UK.  They should feel confident in our proposals as we are building a replica project with government backing, a mature reactor design and a workforce ready to build it.

We look forward to starting the main site construction and delivering this vital project which will reduce costs for consumers and help to create a future-proof low-carbon energy system for Britain.

The initial process launched today invites partners to complete a pre-qualification assessment. Companies will have to demonstrate that they meet the key criteria for entering negotiations on a potential equity stake in Sizewell C, including experience in delivering major infrastructure projects.

The process has been designed following market testing with a cross-section of partners.

While details of the investors who come forward and get involved cannot be provided at this stage given the need for commercial confidentiality, ministers will be looking for private investors who can add value to the project and will only accept private investment if it provides value for money, while bolstering energy security.

Minister for Nuclear and Networks, Andrew Bowie, said:

Sizewell C is at the heart of the UK’s nuclear revival and our ambition to provide up to a quarter of the UK’s electricity from homegrown nuclear energy by 2050.

This will provide reliable and abundant energy, boost economic growth and jobs across the country and underpin the UK’s path to Net Zero.

Following the first government direct public investment in a nuclear project for a generation, I look forward to seeing strong and competitive bids from potential investors to bring new expertise and experience into the company to help deliver this critical piece of national infrastructure.

CEO of EDF Energy, Simone Rossi, said:

EDF is pleased to support the development of the Sizewell C nuclear plant and the launch of this equity raise.

The very significant investment that EDF continues to make in Britain at Hinkley Point C benefits Sizewell C through replication of the design and construction, and a proven UK supply chain.

Together, Hinkley Point C and Sizewell C will be the bedrock of Britain’s new nuclear fleet, a critical part of ensuring Britain has the clean, affordable energy it needs.

Alongside support for Sizewell C at Suffolk, and Hinkley Point C in Somerset, the government has also launched Great British Nuclear, which will further drive the UK’s nuclear revival through the development of new and emerging technologies.

This includes Small Modular Reactors, which can be constructed more quickly having been partially built in factories; and Advanced Modular Reactors, which are also smaller and can generate high temperatures which can help power industry.