Brookfield Asset Management is poised to take on a major role in the Sizewell C nuclear project, becoming the largest private investor as EDF reduces its stake. This move comes as the UK government is finalizing terms regarding the flagship project.
The government aims to make a final investment decision later this summer, with Brookfield expected to hold over 20% of the project, making it the second-largest stakeholder after the UK, which intends to keep majority control. EDF’s stake will fall to 12.5%, allowing the French company to shift its focus towards new nuclear developments in France and manage its existing operations.
In a recent statement, the UK government confirmed EDF’s reduced stake, mentioning that more investors and specific financing details will be shared when the final investment decision is announced. While the timing for this decision is set for summer, it has already faced delays from previous timelines.
EDF’s latest investment in Sizewell C could reach up to £1.1 billion, after an initial investment of about €600 million. Bpifrance, the French state agency, will provide a substantial £5 billion debt guarantee. Additionally, British Gas owner Centrica is also reported to acquire around 15% of the project.
These developments bring more clarity to Sizewell C, the second new nuclear plant to be built in the UK in decades, which has experienced prolonged discussions and delays regarding its financing. Experts suggest the overall cost of Sizewell could approach £40 billion, although both the government and management have disputed this estimate.
Brookfield did not comment on the investment plans, and the UK government also refrained from providing immediate feedback.
Originally proposed by EDF and the China General Nuclear Power Group, the UK now holds approximately 84% of Sizewell C after removing CGN last year due to concerns over foreign influence, spending taxpayer money to buy out their stake.
The project will utilize EPR technology, the same system used at Hinkley Point C and Flamanville 3 in France. However, some campaigners argue that EDF’s diminished stake means that UK residents will effectively support French energy initiatives for decades during the plant’s construction and operation.