Shapps announces Sizewell C nuclear plant is going ahead creating 10,000 jobs

A huge new nuclear plant set to provide a boost to the UK's energy independence has been given the green light. Pushing forward with Sizewell C, set for Suffolk, was a feature in the Autumn Budget, announced by Chancellor Jeremy Hunt. But today the plans were officially announced by Business Secretary Grant Shapps who made his statement in the House of Commons. He claimed 10,000 jobs will be created during its construction and once complete it will provide enough energy to power six million homes.

Mr Shapps said in the Commons: "The development of Sizewell C nuclear plant has been given the green light, will not only generate cleaner, cheaper low carbon electricity to the equivalent of six million homes, but will also generate 10,000 jobs during construction and thousands more in the supply chain".

Supporters of Sizewell have long been calling for the plant's construction to begin, and today's announcement has confirmed a £700,000 contribution from the Government. According to ministers, the move to take a 50 percent stake in the project’s development will help to provide “reliable low-carbon power” for over 50 years in a major win for the UK's energy security.

Britain's crippling reliance on fossil fuels has been laid bare, making it vulnerable to the volatile international gas market which remains largely at the mercy of Russian President Vladimir Putin due to Russia's control over supplies. 

While Britain only got four percent of its gas from Russia last year, when Moscow curtailed supplies to Europe (which got 40 percent of its gas from Russia before the Ukraine war), it hiked up wholesale global gas prices and had a huge impact on UK billpayers. People are now digging deep to pay double the amount for their energy compared with last year on average. 

The Government has pinpointed nuclear energy as having a key role to play in weaning the UK of foreign fossil fuel imports, arguing it can boost Britain's energy independence while also helping it to race to net zero by 2050. 

As part of its energy strategy unveiled in April, which heavily focused on a number of policies that could help weaken Russia's grip on UK energy prices, the Government set a target of significantly scaling up nuclear so that it will account for 25 percent of the country's projected electricity demand by 2040. 

The strategy noted that Sizewell C is critically important for helping the UK reach its nuclear targets, and it has been engaging in negotiations regarding the project's construction since January 2021. 

The plant, which has been described as being the most advanced out of the pending nuclear projects yet to come online, would be a replica of Hinkley Point C. This Somerset-based is also set to power six million homes for around 60 years, but could provide up to 25,000 jobs.

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But while Sizewell C's advocates argued that it will bring a huge boost to the UK's energy independence, its critics had previously raised the alarm over China's involvement in the project.

Now, the Government is spending an initial £679million to help get the £20billion nuclear project off the ground, pushing out state-owned China General Nuclear (CGN) under an exit deal. 

While the Government has not disclosed what proportion will go to CGN under the deal, a spokesman told the Telegraph that the payment "covers the value of their shareholding, their contribution to the project’s development and a commercial return reflecting their work to date."

The spokesman added: "The value of their 20percent stake in the project is commercially confidential. CGN has decided to exit the project at this stage in its development, following constructive commercial negotiations."

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But while Chinese involvement in the project is ending, the campaign group Stop Sizewell C argues that the project will not truly put Britain on a path to energy independence.

The campaign group said: "Sizewell C can neither lower energy bills nor give the UK energy independence. Despite the government's paltry £700million, there is still a huge amount of money to find, and no one is prepared to come clean about what the ultimate cost will be. 

"Its only chance of securing finance is if the Government bribes private investors by foisting the huge cost and inevitable overruns of this lengthy and technically flawed project onto consumers, by adding an extra 'nuclear tax' on energy bills. But Sizewell C may have to rely on overseas investors who would pocket UK households' hard-earned cash. With a French developer, overseas owners and foreign uranium fuel, the claim of energy 'freedom' looks pretty hollow."

Last month, nuclear expert Prof Paul Dorfman from Sussex University warned that like gas, Russia also has a tight grip on uranium supplies -which is used to fuel nuclear reactors. 

He said: "Putin, Russia and Russia-controlled Kazakhstan supply 42 percent of all uranium of all reactors worldwide." But he added: "20 percent for the EU, 14 percent of the US and nearly 30 percent of their enrichment services. The UK is different. We get our uranium from Australia and Canada and we don't rely on Russia so we are ok."