(Bloomberg) -- Centrica Plc is considering investing in the planned UK nuclear power plant Sizewell C, making it a potentially key stakeholder in the British government’s plans to draw private investors to build the project.

The backing by one of Britain’s biggest energy companies could be key to the country’s plans to reach a final investment decision on the multi-billion-pound project later this year. Centrica Chief Executive Officer Chris O’Shea said the company is looking at investing in Sizewell during a call with journalists Thursday morning after releasing full-year results. 

The UK government has been working in recent years to assemble a consortium of investors to construct the nuclear plant and Centrica has been active in those discussions, O’Shea said.

“We could be interested in investing in that, but the risk and reward return has to be right,” O’Shea said. “That is a possible future investment for Centrica, but it has to be on the right terms.”

Read more: UK Puts Up an Extra £1.3 Billion to Build Sizewell C Reactor

The 3.2-gigawatt plant is key to Britain’s plans to boost its nuclear power capacity, along with renewables, to eliminate greenhouse gas emissions from its power grid in the coming years. But delivering new projects has proved difficult and costly. 

Electricite de France SA recently increased the expected cost to build its Hinkley Point C project to as much £35 billion in 2015 terms. Sizewell C is likely to need similar spending, although EDF has said it can cut costs by repeating processes from Hinkley.

At the same time, Britain has shrunk the pool of potential investors its willing to do business with when it comes to vital infrastructure. In 2022, the UK took over a stake from China General Nuclear Power Corp in Sizewell. And it has instituted “strict national security checks” for any potential investor in the project. 

©2024 Bloomberg L.P.