A major nuclear energy project in the U.K. has received the green light from the British government to go forward after a final investment was made. Sizewell C, a nuclear power plant with 3.2-gigawatt capacity, will receive investment from the U.K. government, alongside multiple energy companies and institutional investors.
One institutional investor, Quebec pension fund La Caisse (formerly CDPQ, for Caisse de dépôt et placement du Québec), announced Tuesday that it will take a 20% stake in the project, investing up to 1.7 billion pounds ($2.3 billion).
Other investors include the U.K. government, with a 44.9% stake; British energy company Centrica, with a 15% stake; French energy company EDF Energy, with a 12.5% stake; and investment manager Amber Infrastructure, with a 7.6% stake.
The project, estimated to cost 38 billion pounds ($51.40 billion), has been in development since 2010, with initial construction beginning in January 2024.
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The construction process is expected to peak at 10,000 jobs, and Sizewell C is expected to power more than 6 million homes across the U.K. when it comes on line.
“Our investment demonstrates our confidence in the UK market—our largest destination outside North America—and aligns with our commitment to the energy transition and decarbonization, enabled by our long-term capital and active ownership,” said Emmanuel Jaclot, La Caisse’s head of infrastructure, in a statement.
The investment in Sizewell C comes as the U.K. government is increasingly pushing for more domestic investment in infrastructure and other private assets.
As part of the Mansion House Accord, several U.K. defined contribution plans have pledged to invest at least 10% of their portfolios to alternative investments by 2030, with at least half of these investments to be made in the U.K.
The upcoming Pension Schemes Bill could give the government the power to mandate minimum target allocations to private assets for these pension funds.
In October 2024, the U.K. Infrastructure Bank was transformed into the National Wealth Fund, a sovereign wealth fund that will invest in domestic energy projects and other strategic industries,
“We’re delighted to welcome La Caisse’s investment in Sizewell C,”” said Julia Pyke and Nigel Cain, managing directors of Sizewell C, in a joint statement. “Their decision to take a 20% stake in the project reflects growing international backing for UK nuclear and confidence in Sizewell C. As one of the world’s leading institutional investors, La Caisse brings significant experience in sustainable infrastructure and in delivering projects that drive economic growth and long-term value creation.”
La Caisse currently manages 20 billion pounds of infrastructure assets in the U.K., with plans to invest another 8 billion pounds over the next five years. The fund is also an investor in London Heathrow Airport, Eurostar and the London Array offshore windfarm.
La Caisse manages C$473 billion in assets in total ($347.29 billion), as of December 31, 2024, and provides retirement benefits for more than 6 million beneficiaries. The fund has a C$105.9 billion real assets portfolio—of which C$64 billion is allocated to infrastructure.
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Tags: CDPQ, Infrastructure
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