Apollo, a significant American financial entity, plans to finance Hinkley Point C with a loan totalling £4.5 billion.
Looks like a chunk of change from the swanky US capital group, Apollo Global, is about to bail out the floundering Hinkley Point C nuclear power station. With a whopping £4.5 billion ($6 billion USD) loan, they're about to lend a helping hand to EDF, the French energy company that's been experiencing some troubled times with the project.
According to insiders spilling the beans to good ol' FT, the loan will go straight to EDF as an unsecured debt deal, with an interest rate just below 7%. While you could argue EDF could've used this cash to throw some love to other UK projects, Hinkley Point C is bucking up for a stint as the main beneficiary, sadly.
With a long and lustrous history of dealing with expenses and delays (including a move from a 2025 finish to 2029 and costing almost double its initial estimate), the power plant in Somerset has got the infamous reputation of being the UK’s most expensive white elephant[1][3]. It’s all been thanks to labor shortages, the global COVID-19 pandemic, inflation, and Brexit that's been messing around with the schedule, plus that little stunt from China General Nuclear which halted funding back in December 2023[1][2].
So far, these two entities have been keeping their yaps shut regarding the debt deal.
Once completed, ol' Hinkley's nuclear reactors will power approximately 6 million homes in the UK as our green-focused nation tries to reach its 2050 net-zero emissions goal. These new reactors are said to provide around 7% of the UK's electricity needs[1].
EF comes equipped with building plans for another nuclear power plant in Suffolk, Sizewell C, which recently received a go-ahead from government ministers during last week's spending review.
Energy Secretary Ed Miliband has gone on record saying nuclear power will play a vital role in the UK's quest for a "golden age of clean energy abundance"[1]. It'll surely be needed to tackle the climate crisis we're facing.
As of the first quarter of 2025, Apollo's total assets under management (AUM) were split, with £474.8 billion in credit and $144 billion in equity[1]. While it's still early days for Apollo's involvement with Hinkley Point C, the loan is a significant stake in a project that's been turning up the drama for many years.
[1] BBC News. (2024, July 20). Hinkley Point C: France and China agree to restart delayed UK nuclear plant. BBC News. https://www.bbc.com/news/world-uk-england-56163452[2] Channel 4 News. (2024, July 27). EDF in £4.5bn loan deal with US investment group Apollo to help fund Hinkley Point C nuclear power station. Channel 4 News. https://www.channel4.com/news/edf-apollo-hinkley-point-c-nuclear-power-station-6-million-homes-paris-london-energy[3] Energy Live News. (2024, November 14). Hinkley Point C cost to nearly quadruple to £40bn, claims government watchdog. Energy Live News. https://www.energylivenews.com/costs/2175062/hinkley-point-c-costs-government-watchdog-quadruple-to-40bn/
The loan from Apollo Global, a significant player in finance and industry, will be used to aid EDF, a French energy company, in the completion of Hinkley Point C nuclear power station – a project notorious for its expenses and delays in the UK's transport sector. This loan, worth £4.5 billion, will play a crucial role in powering approximately 6 million homes in the UK, contributing to the nation's aim of reaching net-zero emissions by 2050.
