The government has agreed a funding package with private investors to help it spread the cost of the upcoming £38bn Sizewell C nuclear plant, although it will remain the largest shareholder in the project.

In June, energy secretary Ed Miliband confirmed an initial £14.2bn in funding for the plant as part of plans to kickstart a “golden age” of nuclear energy in the UK and decarbonise the electricity grid.

But the massive scale of the project has meant the government wanted to find external investors to help spread the financial burden. In total, the taxpayer will take an initial 44.9% stake, while the new shareholders include investment group La Caisse with 20%, Centrica with 15% and Amber Infrastructure with an “initial” 7.6%. 

This comes alongside French energy giant EDF taking a 12.5% stake in the project, set out earlier this month, as well as a proposed £5bn debt guarantee from France’s export credit agency Bpifrance Assurance Export to back the company’s commercial bank loans. 

Early planning on Sizewell C started in 2015, with EDF going to take an 80% share and the China General Nuclear Power Group (CGN) funding the remaining 20%. But in 2022, security concerns about China caused the UK government to buy out CGN from the development for just over £100m and increase its stake to 50%, with EDF retaining the other 50%. 

Since then, EDF has been slowly reducing its stake in the project, which coincided with major losses suffered during the building of Hinkley Point C. 

The plant is expected to run for at least six decades. Analysis from the energy department suggests it could create savings of £2bn a year across the future low-carbon electricity system once operational.

At peak construction, Sizewell C is expected to support around 10,000 jobs with thousands more in the nationwide supply chain, as well as creating 1,500 apprenticeships.

“It is time to do big things and build big projects in this country again – and today we announce an investment that will provide clean, homegrown power to millions of homes for generations to come,” Miliband said.

Julia Pyke and Nigel Cann, joint managing directors of Sizewell C, said: “We’re delighted to welcome new investors alongside government and EDF, which – like our suppliers – have strong incentives to keep costs under control and ensure we deliver Sizewell C successfully for consumers and taxpayers.

“By investing in Sizewell C, they are laying the foundations for a more secure, cleaner and more affordable energy system. Because 70% of our construction spend will be in the UK, with a £4.4bn commitment to the east of England, they will also help to create thousands of great jobs and new opportunities for people and businesses up and down the country. 

“We are determined to deliver this major infrastructure differently, and to make sure this is a project Britain can be proud of.”