The UK government has agreed to a further £100mln of funding for the Sizewell C nuclear reactor in Suffolk to help French energy group EDF to move ahead with the project.
Talks between the government and EDF have been ongoing since 2020 over the nuclear plant upgrade, which at £20bn has been criticised by objectors for being ‘ridiculously expensive’.
The Department for Business, Energy and Industrial Strategy (BEIS) said new money was an option fee, which will help EDF move forward and be returned either in cash or through a stake in the development company if the project does go ahead.
If not, “The government will take certain rights over the land of the Sizewell C site and EDF's shares in the Sizewell C company, providing opportunities to continue to develop nuclear or alternative low-carbon energy infrastructure on the site.”
A final decision on whether to build the reactor was scheduled for April, but the deadline is looking in doubt according to reports last month.
The gas crisis affecting the UK has put the spotlight back onto the UK’s generating capacity and underlined the need to maintain the country’s energy independence, said Business Secretary Kwasi Kwateng.
"In light of high global gas prices, we need to ensure Britain's future energy supply is bolstered by reliable, affordable, low-carbon power that is generated in this country," he said.
If built, Sizewell C would be able to supply around provide 7% of the UK's needs with construction projected to take nine years.