La Caisse and Amber Infrastructure to help fund UK’s Sizewell C nuclear plant

The British government has given the final go-ahead for the development of the £38bn (€43.9bn) Sizewell C nuclear plant on the Suffolk coast after securing vital funding commitments from Canadian institutional investor La Caisse, fund manager Amber Infrastructure and UK energy company Centrica.

La Caisse, which manages public-sector pension and insurance funds of Quebec, said it will invest up to £1.7bn in the 3.2GW nuclear power station.

Under the deal, the British state will be the largest shareholder in the project with a 44.9% stake, while La Caisse will hold 20%, Centrica 15% and London-based Amber Infrastructure is investing to own an initial 7.6%. Earlier this month, French energy giant EDF announced it was taking a 12.5% stake, lower than its previously stated 16.2% ownership.

The UK government’s newly created National Wealth Fund (NWF) will provide a term loan of up to £36.6bn to finance the construction after HM Treasury provided it with additional financial capacity. The NWF said it would still had £27.8bn capacity to invest in other sectors.

The Sizewell C project is structured under the UK government’s regulated asset base model, designed to help fund large-scale projects by offering predictability to investors and seeking value for consumers over the long term.

Emmanuel Jaclot, executive vice-president and head of infrastructure at La Caisse, said: “Our commitment to invest in Sizewell C reflects La Caisse’s constructive capital approach, working to deliver optimal financial performance for our clients alongside broader economic and societal progress. La Caisse has a strong track record of bringing private sector expertise alongside governments and industrial players to invest in complex, regulated infrastructure where value-for-money for consumers is key.

“Sizewell C is a positive development for UK consumers, as it is expected to provide long-term reliable baseload power and low carbon energy to more than six million homes across the UK, while contributing to the creation of 10,000 new jobs at peak construction and thousands more in the nationwide supply chain. We’re proud to support the UK government in delivering this landmark project, advancing the country’s energy security and economic growth ambitions. 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 decarbonisation, enabled by our long-term capital and active ownership.”

UK-listed infrastructure fund International Public Partnerships (INPP), which is advised by Amber Infrastructure, will invest around £250m over five years for a 3% stake in the plant, with Amber-managed Nuclear Liabilities Fund accounting for the remainder of the 7.6% stake.

Amber Infrastructure’s interest in providing equity financing for the project was first reported in April last year when the total project cost stood at an estimated £20bn.

INPP chair Mike Gerrard said: “Sizewell C represents a compelling opportunity for INPP’s investors to benefit from attractive risk-adjusted returns by backing a regulated utility highly comparable to projects and businesses in which the company is already invested. The board routinely assesses the relative merits of allocating capital to new investments, and we have a high degree of conviction in the long-term value this transaction will deliver for shareholders.”

Jamie Hossain, senior investment director at Amber Infrastructure, said: “The global markets in which INPP invests continue to require long-term investors to fill the funding gap for new critical infrastructure.

“We have worked extensively with the UK government to structure a regulated investment in Sizewell C that fits INPP’s established investment criteria. As INPP’s portfolio matures, we continue to originate the next generation of potential investments that maintain the company’s commitment to shareholders to generate a blend of stable, long-term, inflation-linked returns and potential for capital appreciation.”

Julia Pyke and Nigel Cann, joint managing directors of Sizewell C, said: “We’re delighted to welcome Amber Infrastructure to the Sizewell C project. Their decision to invest reflects growing momentum behind UK nuclear and confidence in the project’s potential to deliver both energy and economic security.

“As an experienced UK-based infrastructure investor with a strong track record in public-private partnerships, including the successful Thames Tideway Tunnel, Amber brings valuable expertise in delivering long-term impact. Their support helps strengthen our financial base and will contribute to creating tens of thousands of high-skilled jobs and 1500 apprenticeships across the country. Sizewell C will provide clean power and energy security for generations, and Amber’s long term support for the  vision is helping us deliver.”

Ed Miliband, Secretary of State for Energy Security and Net Zero, added: “We’re delighted to welcome La Caisse’s investment in Sizewell C. It is time to do big things and build big projects in this country again – and today we announce an investment that will provide clean, homegrown power to millions of homes for generations to come. This government is making the investment needed to deliver a new golden age of nuclear, so we can end delays and free us from the ravages of the global fossil fuel markets to bring bills down for good.

“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.”

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