French energy giant EDF will have a 12.5% stake in new British nuclear power plant Sizewell C, London and Paris revealed on Tuesday, July 8, in the first deal announcement of President Emmanuel Macron's state visit to the UK.
France's state-owned EDF will invest "around £1.1 billion ($1.5 billion) for a 12.5-percent participation," the French government said in a statement regarding a project aimed at meeting Britain's net-zero and energy security targets. Prime Minister Keir Starmer said in a separate statement that the investment will help deliver "lower energy bills" and "better energy security" for Britain.
The announcement comes after Starmer's Labour government said in June it would invest £14.2 billion in Sizewell C, which is being built in eastern England. Britain's government is the majority shareholder in Sizewell C, after Chinese company CGN exited the project. The plant, which is set to cost £20-30 billion to build according to current estimates, is not expected to start generating electricity until 2035.
The UK has refocused on shoring up nuclear power since the start of the war in Ukraine, in the name of energy security and faced with a fleet of ageing power stations. Labour also wants to increase the share of non-carbon-emitting energy. The UK government has pledged to reduce UK greenhouse gas emissions by 81 percent on 1990 levels by 2035 and reach net-zero by 2050. The use of nuclear energy as an alternative to fossil fuels is highly controversial, however, with many environmental groups warning about safety risks and the disposal of nuclear waste.
The Sizewell C announcement has been met with anger by some local residents worried about the impact of the new plant on the local town of Leiston in Suffolk. Nearby is the Sizewell B nuclear power station, which is due to close in 2035, and Sizewell A, which is in the process of being decommissioned. EDF is also building the Hinkley Point C nuclear power plant in southwestern England, although it has been blighted by delays and rising construction costs.