- EDF submits an application to build Sizewell C nuclear plant in the United Kingdom.
- The £17 billion to £18 billion project will power roughly 6 million homes in the UK.
- The French utility company's Hinkley Point C project is likely to be completed in 2025.
EDF (EPA: EDF) announced on Wednesday that it has filed an application to build Sizewell C nuclear plant in the United Kingdom. The company told Britain’s regulators that it will cost £17 billion to £18 billion in total to build the facility in the east of England.
As per sources, the application that is commonly referred to as a development consent order was originally expected to be submitted to the UK’s Planning Inspectorate in March. It was, however, postponed as the Coronavirus pandemic wreaked nationwide havoc. A court ruling recently imposed an about £45,000 fine on EDF to be paid to French oil major, Total S.A.
Shares of the company are currently 2.5% up on Wednesday. At £7.23 per share, EDF is roughly 20% down year to date in the stock market. Learn more about how to invest in the stock market.
EDF’s Hinkley Point C project is expected to complete in 2025
EDF’s application for Sizewell C nuclear plant marks its second in the UK. The French electric utility company had previously applied for the Hinkley Point C project that is likely to conclude in 2025.
According to EDF, upon approval, successful completion of the Sizewell C project will create 1,000 apprenticeships and 25,000 jobs. It will provide electricity to roughly 6 million homes in Britain. Managing Director Humphrey Cadoux-Hudson of Sizewell C project commented on Wednesday:
“Sizewell C will offer thousands of high-quality job opportunities and long-term employment.”
Local residents object to Sizewell C nuclear plant
Sources also confirmed that some local residents expressed dissent for the Sizewell C project. Owing to social distancing measures, however, public gatherings are currently prohibited for a large-scale public discussion over EDF’s application.
But to add convenience for residents to evaluate its application, EDF said that it will take extra measures including an extension on the pre-examination period.
Compared to the Hinkley Point C project, EDF estimates roughly 20% lower costs associated with the Sizewell C nuclear plant. Following multiple delays, the Hinkley Point C project is now expected to cost £21.5 billion to £22.5 billion in total.
According to sources, China’s CGN currently holds a 20% stake in the Sizewell’s development phase. CGN also boasts a 33.5% stake in EDF’s Hinkley project.
The French utility company plans on using similar financing for the Sizewell C project as used for UK’s infrastructure assets, including electricity networks. The type of funding is known to reduce costs for consumers.
EDF’s performance in 2019 was also downbeat with an annual decline of about 25%. At the time of writing, the £22.09 billion company has a price to earnings ratio of 4.80.