Ministers are exploring the creation of a state-owned nuclear company that would take stakes in future power stations, to reduce Britain’s reliance on foreign energy.
Business secretary Kwasi Kwarteng is understood to be weighing up the plans in an effort to jump-start new nuclear projects, which have suffered years of delays.
Nuclear power is a pillar of the government’s plan to reach net zero by 2050, along with renewable sources of energy such as offshore wind. Building new projects is key to weaning the UK off oil and gas from overseas, Kwarteng has argued in recent weeks.
It is unclear whether a state nuclear company will be part of the government’s updated energy strategy, due imminently. Last week, chancellor Rishi Sunak insisted that Boris Johnson delay the strategy to give him more time to establish the costs of building nuclear and renewables projects.
Ministers want to remove Chinese investment from future nuclear projects amid security concerns, but have struggled to entice new investors. A state company would demonstrate the government’s commitment to the sector.
Johnson is set for talks tomorrow with executives from the nuclear industry, including France’s EDF and Rolls-Royce.