Nuclear energy is to be reclassified as ‘environmentally sustainable’ so it has the same access to investment incentives as renewables, Jeremy Hunt said yesterday.
The Chancellor said the measure was aimed at ensuring a quarter of Britain’s electricity is provided by nuclear by 2050.
It is part of a strategy to ensure the UK is not overly reliant on foreign imports for energy production following the Russian invasion of Ukraine, which caused global energy prices to soar.
Mr Hunt also said that he wants to invest up to £20billion to help develop carbon capture usage and storage (CCUS) technologies.
These are designed to suck up carbon from the emissions from major polluting industries, such as steel, glass or power.
The Chancellor said he hopes the money can help a sector which he said could support up to 50,000 jobs.
But none of the new money would come before the next election, after which Mr Hunt may no longer be Chancellor.
Outlining his Spring Budget, the Chancellor told the Commons: ‘We are world leaders in renewable energy so today I want to develop another plank of our green economy, carbon capture usage and storage.’
He added: ‘To encourage the private sector investment into our nuclear programme, I today confirm that subject to consultation nuclear power will be classed as “environmentally sustainable” in our green taxonomy, giving it access to the same investment incentives as renewable energy.
‘Alongside that will come more public investment.’
Announcing ‘two further commitments to deliver our nuclear ambitions’, he added: ‘Firstly, following representations from our energetic Energy Security Secretary I am announcing the launch of Great British Nuclear, which will bring down costs and provide opportunities across the nuclear supply chain to help provide up to one quarter of our electricity by 2050.’
He also launched a competition for small modular reactors, which will be funded if the technology is proven to be viable.
And he reiterated an announcement made in the autumn to invest £700 million in the Sizewell C nuclear power station planned in Suffolk.
Tory chair of the Commons’ Welsh Affairs Committee, Stephen Crabb, said he hoped it could lead to nuclear sites in Wales.
He said: ‘I hope this is a sign that Wylfa [on the Isle of Anglesey] may be given the green light sooner rather than later for a GW [Gigawatt] scale site.
‘There are two potential sites in Wales for small modular reactors, at Wylfa and Trawsfynydd, and I hope these projects are considered for Great British Nuclear’s upcoming competition.’
But Professor Adrian Bull, of the Dalton Nuclear Institute at the University of Manchester, said: ‘The Chancellor’s words on nuclear give a positive message, but it’s more like a greatest hits compilation from the past, rather than anything new.
‘Confirming nuclear’s environmental credentials will certainly help attract investment – but it’s only stating the obvious. Nuclear is as low-carbon as renewables and should always have been treated that way.
‘He’s announced Great British Nuclear – which is about the fourth time it’s been announced.
‘What we need is to see it actually come into being, and to see a clear plan of what it will do.’
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