• Loading stock data...
 ENEC Among Six Firms Selected for Second Round Bidding for Sizewell C Nuclear Plant


ENEC Among Six Firms Selected for Second Round Bidding for Sizewell C Nuclear Plant

The UAE’s Emirates Nuclear Energy Corporation (ENEC) is among the six potential investors selected by the UK government and the French energy group EDF for the second phase of the bidding process for the upcoming 3.2 GW Sizewell C nuclear power project in Suffolk in England.

Along with ENEC, the UK’s global energy trading company are said to be two of the main bidders for part of the 30% stake in the proposed nuclear project, media reports said.

The UK government plans to raise between $7.5 billion and $9.94 billion out of the $24.84 billion required for construction of the Sizewell C nuclear plant, which is at the heart of the UK’s civil nuclear revival and will house two of the most powerful reactors in the world, by June this year.

The remaining four companies are pension investor Universities Superannuation Scheme (USS), and fund managers – Amber Infrastructure, Equitix and Schroders Greencoat – which will participate in the bidding.  Rothschild is advising Sizewell C on the process, while Barclays is working for the government.

ENEC, which is owned by Abu Dhabi’s sovereign wealth fund ADQ and is being advised by Perella Weinberg Partners, and London-listed Centrica, which is working with UBS, are gunning for the largest stakes of 10% or more, according to the reports.

Chris O’Shea, CEO of Centrica, which already owns a 20% stake in the UK’s five operational nuclear plants, alongside 80%-owner EDF, confirmed Centrica is involved in the process during the presentation of the company’s latest annual results on 15 February this year, adding the company was interested in investing if the returns were in the right place and they compensate for the risk.

It may be mentioned here that ENEC launched the 5.6 GW Barakah Nuclear Plant in Abu Dhabi, and four of its units have already been commissioned so far to supply up to 25% of the Emirates’ electricity needs. The project was the first nuclear plant in the Arab world and second in the Persian Gulf.

Additional Funding

On its part, the UK government has made an additional $1.61 billion available in January this year to support the construction of Sizewell C, which will create thousands of jobs and enough stable, cheaper and more secure power for up to 6 million homes. The largest funding package to date will allow early construction works to continue ahead of a final investment decision later this year.

The $1.61 billion Investment consolidates the government’s position as the majority shareholder in the project, reached in December 2023. It follows a $869.46 million funding pledge in November 2022 and a further $634.71 million agreed last summer.

The UK is developing new plants such as Sizewell C and Hinkley Point C to replace its ageing nuclear fleet. Over the past six years, nuclear power has generated 15-20% of Britain’s electricity needs. However, eight of the nine remaining reactors at the five existing plants – which represent 4.6 GW of the UK’s 5.8 GW current nuclear capacity – will be closed within this decade.

Global Business Magazine

Global Business Magazine

Related post

Leave a Reply

Your email address will not be published. Required fields are marked *