EDF to Invest $1.5 Billion in Sizewell C Nuclear Project Amid UK Energy Revamp

French energy company EDF is set to invest around £1.1 billion, equivalent to $1.5 billion, into the Sizewell C nuclear project in the UK, where it is already an existing shareholder. This announcement was made during a state visit to Britain by French President Emmanuel Macron, marking a significant diplomatic interaction since Brexit. The UK's government is eager to construct new nuclear facilities that can replace its aging power plants, which is crucial for strengthening energy security and achieving its ambitious climate goal of net zero emissions by 2050.

Once operational, the Sizewell C plant is expected to generate enough electricity to supply around 6 million households. British Prime Minister Keir Starmer praised this investment, stating it moves the country closer to realizing the benefits associated with the project. By contributing this investment, EDF will hold a 12.5 percent stake in Sizewell C. According to EDF's recent annual report, the company previously maintained a stake of 16.2 percent, amounting to an investment of approximately 652 million euros as of the end of 2024. This stake is anticipated to fluctuate as the UK government and other investors enhance their involvement in the project.

The UK government has already committed £17.8 billion to the Sizewell C initiative and is still on the lookout for additional funding partners. It has been reported that Brookfield, an investment fund listed in the US, has agreed to acquire over 20 percent of the project in return for providing financial support for its development. British utility Centrica has expressed interest in potentially investing in the project but has not made any official announcements yet. A Centrica spokesperson noted that they do not comment on speculative matters regarding mergers, acquisitions, or investments.

The UK government has clarified that it is in negotiations with several potential investors regarding the project, emphasizing the sensitivity of these discussions. The Department for Energy Security and Net Zero affirmed its intention to maintain a significant ownership stake in Sizewell C to oversee its advancement and mitigate any potential delays. Originally, China General Nuclear Power Group was slated to collaborate with EDF on the Sizewell C project; however, the UK government acquired the Chinese firm’s stake in 2022 due to security apprehensions. This nuclear facility would mark the second new plant constructed in Britain in over twenty years, following EDF’s Hinkley Point C, which experienced numerous delays and budget overruns and is expected to begin operations in 2029 at a projected cost of £31-34 billion based on 2015 prices. While the government has not disclosed an expected budget for Sizewell C, EDF has indicated that the costs would be roughly 20 percent lower than those for Hinkley C.