The developer of a new nuclear power plant in Cumbria has signed an agreement with the Treasury to promote financing for the project.
The deal establishes a process to enable access to the UK Guarantee Scheme, which was introduced in 2012 to help developers gain external project finance to cover the upfront costs.
The Moorside project, a joint venture between Japan’s Toshiba and France’s GDF Suez, could provide nearly 7% of Britain’s electricity needs and create up to 21,000 jobs.
NuGen – the joint venture – and the Treasury will work together to see how the scheme can support external finance for the project, which is set to be the largest new nuclear power station in the UK.
The first reactor is expected to be connected to the grid by the end of 2024, with all three providing 3.4GW of power by the end of 2026.
Chancellor George Osborne said: “Investment in a new generation of civil nuclear power is part of our long term economic plan to provide Britain with the energy it needs for decades to come.
“The Guarantee Scheme is another way in which we can help companies to make the huge investment that building new nuclear power involves.”
NuGen said it plans to make a final investment decision for the Moorside project in 2018.