US private equity group Apollo Global will provide £4.5 billion in financing to support Britain’s long-delayed Hinkley Point nuclear project, the Financial Times reported today, citing people familiar with the matter.
The project, controlled and financed by French power giant EDF, is Britain’s first new nuclear plant in more than two decades as London seeks to replace its ageing fleet to boost energy security, reach climate targets and create new jobs.
Apollo declined to comment on the FT report, while Britain’s energy department, and EDF – which runs Europe’s largest nuclear fleet – did not immediately respond to Reuters requests for comment.
The Hinkley project has had several delays and cost overruns, especially after China General Nuclear Power Group pulled out in 2023.
It is currently expected to start operations in 2029, with an estimated cost of between £31 billion and £34 billion at 2015 prices.
Apollo’s funding is expected to be provided as unsecured debt at an interest rate of just under 7%, the report said, adding that it could be used for other projects by EDF, but Hinkley Point was expected to be the primary target for the package.
The UK government last week said it would invest a further £14.2 billion to build the Sizewell C nuclear plant in southeast England, a second major new nuclear project for the country.
