Nuclear

Energy supplier Centrica, which owns British Gas, has joined the UK nuclear arena with the confirmation of its plan to take a 20% stake British Energy, which was acquired by EDF earlier this year.

British Energy operates eight nuclear and one coal-fired power station in the UK, with a total capacity of 8.7 GW and 1.9 GW, respectively.

EDF and Centrica will also form an 80/20 joint venture with the aim of building four new nuclear power stations in the UK. The two companies plan to construct, operate and decommission four European Pressurised Reactors (EPRs). EDF has already begun the certification process for the EPR design in the UK and says the first reactor at Hinkley Point in the south west could be operational by the end of 2017.

The 20% stake in British Energy will cost Centrica £2.3 billion, but EDF will simultaneously acquire a 51% stake in Belgian energy company SPE. The effective asset swap will mean that Centrica’s cash consideration to EDF will be only £1.1 billion.

“This transaction will enable leading British generator, Centrica, alongside EDF, to take part in the re-launch of nuclear energy in the UK,” says Pierre Gadonneix, chairman and chief executive of EDF.

For further information:
www.centrica.co.uk/index.asp
www.edfenergy.com/
www.british-energy.com/
www.spe.be/index.php?page=home

Related stories:
EDF takeover of British Energy goes ahead (7-Jan)
UK unveils 11 potential sites for new nuclear power stations (17-Apr)
UK nuclear authority announces four sites for development (26-Jan)
E.ON, RWE and EDF win £400 million UK nuclear site auction (30-Apr)