EDF's new UK nuclear project soars to $40 bln

STORY: EDF's new nuclear plant in southwest England is likely to soar in price to $40 billion.

Owing to inflation, this is 30% more than the last budget estimate, EDF documents show.

Britain plans to build new nuclear plants to boost its energy security as well as help meet its target for net zero emissions by 2050.

EDF warned on Friday (February 17) that the price surge for Hinkley Point C project, Britain's first nuclear plant in over 20 years, was based on inflation indexes as of June 30, 2022.

EDF is building the plant with China's CGN, which has a 33.5% stake in the project.

The higher costs mean the French energy giant can ask CGN to put more capital into Hinkley.

But EDF said there is a high probability that CGN will not fund the project after it has reached its committed equity cap.

That would mean EDF would have to step in to shoulder the additional costs in place of CGN.

EDF is still targeting a start date of June 2027 for the first of the two units at the plant.

However, as it is in the process of being nationalized by the French government, EDF warned of delays owing to imposed lockdowns - or if the war in Ukraine disrupts supply chains.

The project is already a decade overdue, with EDF initially saying it would be powering British homes in 2017.