The UK Government is putting up £100m to back plans for a major new nuclear power station in Suffolk.
The funding commitment will be used to continue the development of the project and aims to attract further financing from private investors.
Negotiations between the Government and Sizewell C project developer, EDF, have been ongoing since last year. If built, Sizewell C would power the equivalent of around 6 million homes, as well as supporting up to 10,000 jobs in Suffolk and across the UK.
Business and Energy Secretary, Kwasi Kwarteng, said: “In light of high global gas prices, we need to ensure Britain’s future energy supply is bolstered by reliable, affordable, low carbon power that is generated in this country.
“New nuclear is not only an important part of our plans to ensure greater energy independence, but to create high-quality jobs and drive economic growth.”
If Sizewell C reaches a Final Investment Decision, the Government will be reimbursed the £100m option fee with a financing return, either in the form of either cash or an equity stake in the project.