Green light for Sizewell C as £14.2bn to go to major nuclear project as part of Spending Review
The UK’s nuclear energy capacity is set to receive a major boost after the government confirmed it would put up the funds for the Sizewell C plant, ending months of uncertainty.
Funding for the project is set to be announced by Chancellor Rachel Reeves alongside a decision on the Small Modular Reactor (SMR) competition at the nuclear trade union GMB Congress later today.
Reeves touted this investment as ”the biggest nuclear building programme in a generation” and a “landmark decision”, which will kickstart economic growth.
The government will announce £14.2bn in investment into Sizewell C as part of the upcoming spending review, a major component of its plan to become self-reliant by switching to clean energy.
Energy Secretary Ed Miliband has vowed to usher in a “golden age of clean energy abundance” through harnessing nuclear power. “This is the Government’s clean energy mission in action – investing in lower bills and good jobs for energy security.”
Big nuclear
Sizewell C promises to power 6m homes, though it will be at least a decade before it is generating power.
The investment is expected to create 10,000 jobs in industries like construction and welding, and support local supply chains, with as much as 70 per cent of contracts going to 3,500 UK suppliers.
Sizewell C has already started construction, before securing a final investment decision (FID) or sufficient funds to complete the power plant. Sizewell C has already signed £330mn in contracts with local companies.
Construction likely began before the necessary investment decision was made because Hinkley Point C, Sizewell C’s sister site on which it is modelled, faced ballooning costs and significant delays. Hinkley Point C was anticipated to have been completed this year.
The two sites together are set to supply more nuclear power to the grid than was seen over the previous fifty years combined.
No new nuclear capacity has been created since 1995 in the UK, and most of the UK’s existing nuclear facilities are due to be phased out by the early 2030s.
Managing Directors of Sizewell C, Julia Pyke and Nigel Cann, said: “Today marks the start of an exciting new chapter for Sizewell C, the UK’s first British-owned nuclear power plant in over 30 years. It’s a privilege to be leading a project that will create over 10,000 jobs, secure Britain’s energy future and revitalise the UK’s nuclear industry.”
Tony Tanushi, GMB Regional Energy Organiser, said: “Sizewell C will provide thousands of good, skilled, unionised jobs.”
Small nuclear
The long-awaited SMR competition will see its conclusion with the announcement of the winners today.
Big Tech companies are particularly supportive of SMRs, as they could power the energy-intensive data centres which back AI.
SMRs require advanced fuels. Russia has paved the way for the development of nuclear fuels – namely, HALEU. After its invasion of Ukraine, the UK has been required to develop its own alternatives.
As part of this major investment package, the government is allocating £300m towards the development of a fuel supply.
Mike Clancy, general secretary of the workers union Prospect said: “Further investment in SMRs and fusion research shows we are finally serious about developing a 21st century nuclear industry.”
Submarine nuclear
£6bn of investment will go towards developing the nuclear submarine industrial base. This constitutes part of the government’s recent defence announcement, where the PM promised to build 12 new attack submarines.
£230m over three years will go into the HMNB Clyde naval base, and £420m of additional funding will go into Sheffield Forgemasters to produce the steel used in big defence projects, which will create 900 new construction roles, according to the government.
Nuclear research
The Treasury will also be channeling £2.5bn in fusion energy research over five years.
Some of this will go toward the Spherical Tokamak for Energy Production programme in Nottinghamshire.
Despite the resignation of two successive nuclear ministers in the span of a month, DESNZ will be storming ahead with their nuclear plans.
Tom Greatrex, Chief Executive of the Nuclear Industry Association, said: “This announcement shows the government is serious about new nuclear, and realising the economic benefits that come with it.”