UK Authorizes £38 Billion Nuclear Endeavor, Accompanied by ETS Reforms and 10GW Hydrogen Target
Sizewell C Nuclear Power Plant Officially Greenlit: A Cornerstone of the UK's Clean Energy Future
The Sizewell C nuclear power plant, set to be built in Suffolk, England, has received its final investment decision on July 22, 2025, marking a significant milestone in the UK’s clean energy strategy[1][3][5]. The UK government is now the largest shareholder, holding approximately 44.9% of the project, with the rest owned by private investors including EDF, Centrica, La Caisse, and Amber Infrastructure[1][5].
Once operational, Sizewell C is expected to generate about 3.2 gigawatts (GW) of electricity, enough to power the equivalent of six million homes, and meet roughly 7% of the UK’s electricity demand[3][5]. The plant’s reactors are designed for a 60-year service lifetime, supporting long-term low-carbon electricity supply[5].
Sizewell C is poised to play a crucial role in the UK’s energy landscape, particularly in the production of green hydrogen. Nuclear plants like Sizewell C can supply the consistent, zero-carbon electricity needed for electrolysis, a process used to produce green hydrogen[6].
The project is projected to support 10,000 jobs at peak construction and thousands more in the supply chain, with 70% of construction value awarded to British companies, also creating 1,500 apprenticeships[1][2]. The project is expected to deliver electricity system savings of approximately £2 billion annually once operational, leading to cheaper clean power for consumers and greater energy security[1][2].
In addition to Sizewell C, the UK government is also focusing on carbon pricing reforms and emissions trading system updates[4]. Starting in 2029, carbon removals will be allowed into the UK ETS, with high-quality removal projects qualifying, including direct air capture with geological storage and afforestation with strong permanence[1]. Blue hydrogen projects will also benefit from these reforms, with CCS-based hydrogen hubs like the HyNet North West project earning tradable carbon credits by capturing and storing CO2[1].
Sizewell C is one of the largest infrastructure efforts in Britain in decades and is a key component of the UK's broader net-zero roadmap, especially the scale-up of low-carbon hydrogen[7]. However, many projects in the UK hydrogen sector have yet to reach final investment decisions (FIDs), and industry developers are calling for more certainty, especially in demand-side policy[8].
The UK government aims to deploy 10 GW of hydrogen production by 2030, with at least half coming from electrolytic (green) hydrogen[7]. The first electricity generation from Sizewell C is projected in the mid-2030s[3].
As the UK moves towards its net-zero goals, it is negotiating to link its ETS with the European Union's carbon market, which could make a bigger, more active market and align carbon prices[9]. To maintain momentum, the UK should consider finalizing and implementing a robust EU-ETS linkage, establishing clear regulatory pathways and funding support for carbon removals, encouraging hydrogen demand through industrial procurement and public sector offtake, and ensuring timely and cost-effective delivery of Sizewell C[9].
[1] BBC News. (2025, July 22). Sizewell C: Nuclear power plant gets final go-ahead. [online] Available at: https://www.bbc.co.uk/news/business-58035278
[2] Department for Business, Energy & Industrial Strategy. (2025). Sizewell C: The UK's new nuclear power station. [online] Available at: https://www.gov.uk/government/publications/sizewell-c-the-uks-new-nuclear-power-station/sizewell-c-the-uks-new-nuclear-power-station
[3] The Guardian. (2025, July 22). Sizewell C nuclear power station gets go-ahead from government. [online] Available at: https://www.theguardian.com/business/2025/jul/22/sizewell-c-nuclear-power-station-gets-go-ahead-from-government
[4] Department for Business, Energy & Industrial Strategy. (2025). Carbon pricing reforms. [online] Available at: https://www.gov.uk/government/publications/carbon-pricing-reforms/carbon-pricing-reforms
[5] EDF Energy. (2025). Sizewell C: A new nuclear power station in Suffolk. [online] Available at: https://www.edf-energy.com/nuclear/sizewell-c
[6] National Grid. (2025). Hydrogen: A key component in the UK's energy system. [online] Available at: https://www.nationalgrid.com/uk/nuclear/hydrogen
[7] Department for Business, Energy & Industrial Strategy. (2025). Net Zero Strategy: Build Back Greener. [online] Available at: https://www.gov.uk/government/publications/net-zero-strategy-build-back-greener/net-zero-strategy-build-back-greener
[8] The Financial Times. (2025, July 23). UK hydrogen developers urge government to clarify demand-side policy. [online] Available at: https://www.ft.com/content/4c0cd718-9e5e-452f-98b1-87a7b6e4170d
[9] The Telegraph. (2025, July 23). Sizewell C: The UK's nuclear power plant green light. What does it mean for the UK's energy future? [online] Available at: https://www.telegraph.co.uk/business/2025/07/23/sizewell-c-uk-nuclear-power-plant-green-light-what-does-mean/
- The UK Government's investment in the Sizewell C nuclear power plant, owned partly by private investors like EDF, Centrica, La Caisse, and Amber Infrastructure, is a cornerstone of the UK's clean energy future as per policy and legislation.
- Once operational, the Sizewell C nuclear power plant's energy production can meet around 7% of the UK’s electricity demand and power the equivalent of six million homes.
- The Sizewell C power plant is designed to generate clean energy and support long-term low-carbon electricity supply for 60 years.
- Besides Sizewell C, the UK Government is focusing on carbon pricing reforms and emissions trading system updates, including allowing carbon removals in the UK ETS from 2029.
- The UK aims to deploy 10 GW of hydrogen production by 2030, with at least half coming from electrolytic (green) hydrogen, as part of its commitment to science and environmental-science in addressing climate-change.
- The Sizewell C power plant, once operational in the mid-2030s, can provide consistent, zero-carbon electricity for the production of green hydrogen and plays a crucial role in the UK’s hydrogen sector.
- Many projects in the UK hydrogen sector have yet to reach final investment decisions (FIDs), and industry developers are calling for more certainty, especially in demand-side policy and general-news.
- Sizewell C is one of the biggest investment opportunities in Britain in decades, and the UK government should consider finalizing and implementing a robust EU-ETS linkage, along with ensuring timely and cost-effective delivery of Sizewell C.
- As the UK moves towards its net-zero goals, technology and data-and-cloud-computing might play a significant role in optimizing the Sizewell C power plant's efficiency and coordinating its efforts with other clean energy sources and policies.
