The proposed nuclear power plant at Hinkley Point in Somerset is a major infrastructure project which could be eligible for a state-backed guarantee, but British government has pledged not to provide public subsidies for the industry.
A person familiar with the matter was quoted by Financial Times as saying that talks between EDF and the UK government were at an early stage.
Formal discussions regarding the latest move is likely to start only once the two sides had agreed on a fixed price for the nuclear power produced at the Hinkley Point site.
The French nuclear major is asking the British government to underwrite some of the project’s financing, which is expected to make it more attractive to 3rd party financial investors such as pension funds, reports FT.
Launched in July 2021, the Treasury’s UK Guarantees scheme is intended to underwrite up to £40bn of infrastructure investments.
Recently, British Gas owner Centrica announced that it would not exercise its option to take a 20% stake in EDF’s program to build nuclear reactor and cited rising costs as a reason.
