British Gas parent Centrica PLC (LSE:CNA) has confirmed discussions with the UK government to take part in the multi-billion-pound Sizewell C nuclear project in Suffolk.
Last month, the government pledged an extra £1.3 billion in additional investment in the nuclear plant following a £700 million funding pledge in November 2022 and a further £511 million agreed last summer.
The government wants to quadruple nuclear power generation to up to 24GW by 2050, but it needs to call on private investors to help bankroll the plans.
“We could be interested in investing in that, but the risk and reward return has to be right,” Bloomberg quoted Centrica boss Chris O’Shea today. “That is a possible future investment for Centrica, but it has to be on the right terms.”
O’Shea’s comments come after an annual earnings call detailing how the group’s earnings were hit by lower commodity prices, with the British Gas owner’s adjusted operating profit falling 17% year on year to £2.75 billion.
However, retail profit rose to £800 million, driven by a return to profitability in British Gas Services & Solutions and cost recoveries in British Gas Energy.
What is the Sizewell C project?
The 3.2-gigawatt Sizewell C nuclear project is a proposed nuclear power station to be built in Suffolk, England, next to the existing Sizewell B and the decommissioned Sizewell A nuclear power stations.
It aims to provide a significant contribution to the UK's energy supply and climate change goals by generating low-carbon electricity sufficient to power about six million homes.
EDF Energy is the leading developer and future operator of the Sizewell C project.
The Sizewell C project is designed to use European Pressurised Reactors (EPR), a modern and advanced nuclear reactor design developed by EDF.