Introduction
In a surprising turn of events, London-based nuclear energy startup Newcleo has decided to abandon its plans of building its first power plant in the United Kingdom and instead invest in France. This decision comes as a result of an extensive lobbying effort by France’s president, Emmanuel Macron, who personally convinced Newcleo’s CEO and founder Stefano Buono to choose France as the location for their modular nuclear reactor factory. This article delves into the reasons behind Newcleo’s shift and explores the potential implications of this decision for both countries.
A Charm Offensive by President Macron
President Emmanuel Macron went to great lengths to persuade Newcleo to build its factory in France. Over the course of several meetings with Stefano Buono, Macron presented a compelling case for the advantages of choosing France as their manufacturing base. The French president’s charm offensive seems to have paid off, as Newcleo ultimately made the decision to set up shop across the channel.
Abandoning UK Plans: Delays and French Wooing
Newcleo initially planned to tap into the UK’s vast stockpile of nuclear waste at the former Sellafield site to power its reactors. However, after encountering two years of delays in securing permits for the factory, combined with the persuasive efforts of President Macron, the startup opted to change course. The move to France offers a fresh start for Newcleo, allowing them to accelerate their plans and avoid the bureaucratic hurdles they faced in the UK.
Investing in France: The Road Ahead
With the decision made, Newcleo has now begun the permitting process with French authorities to build a pilot reactor and a factory for nuclear fuel production by 2030. The company aims to purchase nuclear waste from EDF, France’s state energy giant, to power their reactors. This strategic move will not only provide Newcleo with a reliable source of raw material but also enable them to contribute to France’s nuclear energy industry.
Maintaining a Presence in Italy
While Newcleo shifts its manufacturing operations to France, the company will maintain a strong presence in Italy. Italy serves as the home for Newcleo’s research and development department, as well as the site for designing and manufacturing some of their reactor components. This dual presence in both France and Italy allows Newcleo to leverage the strengths of each country and establish a solid foothold in the European nuclear energy market.
Funding the French Expansion
The construction of a pilot reactor and nuclear waste reprocessing plant is estimated to cost around €4 billion. To finance this ambitious project, Newcleo is currently in talks with investors to raise up to €1 billion, in addition to the €1.5 billion in equity they have already secured. The company’s financial prospects received a significant boost when it won a €20 million grant from Bpifrance, France’s public sector investment bank. Furthermore, Newcleo can benefit from tax credit incentives, further strengthening its position in the French market.
Disrupting the Nuclear Energy Sector
Newcleo is part of a new wave of startups challenging the traditional dominance of state-led, gigawatt-scale nuclear projects with hefty price tags. By developing small nuclear reactors powered by radioactive waste, Newcleo offers a more compact and efficient alternative to large-scale plants. Elisabeth Rizzotti, Newcleo’s COO, highlights the advantages of their technology, including shorter and easier build times, achievable delivery plans, and the ability to close the fuel cycle by utilizing mixed oxide (MOX) fuels. This approach not only reduces environmental and financial costs but also mitigates the risk of proliferation and eliminates the need for new nuclear fuel extraction.
The Impact on the UK Nuclear Energy Industry
Newcleo’s decision to abandon its plans in the UK and invest in France raises questions about the implications for the UK’s nuclear energy industry. The loss of a potential power plant and the associated job opportunities may have a negative impact on the UK’s efforts to expand its nuclear energy capacity. Additionally, the shift in investment to France highlights the importance of creating a favorable business environment and streamlining regulatory processes to attract and retain nuclear startups.