Emmanuel Macron is expected to confirm EDF’s commitment to the project during his visit to Britain this week - Chris Jackson/AFP via Getty Images

French state nuclear giant EDF is preparing to reduce its stake in Britain’s Sizewell C project as Emmanuel Macron holds talks with Sir Keir Starmer about the project.

EDF has been the UK Government’s only partner on the £40bn scheme for the past three years, following the ejection of China General Nuclear (CGN) over security concerns.

But in a fundraising round that is expected to bring in further investors including British Gas owner Centrica, EDF has confirmed that its share of the project will now fall.

Bosses have decided to retain a stake of just 12.5pc, down from EDF’s most recently declared level of 16.2pc, the Government said on Tuesday.

This is at the lower end of a 10pc to 19.99pc range the company had previously suggested it would consider.

However, it still represents a new £1.1bn investment and will be viewed as a boost to Sizewell’s prospects following the UK Government’s commitment to invest a further £14bn in the scheme last month.Sizewell C’s cost is expected to come in at around £40bn - Chris Radburn/Reuters

The investment was confirmed ahead of President Macron’s meeting with the Prime Minister in Downing Street.

Sir Keir said: “I’ve been clear there will be no more dithering and delay on Sizewell C – and this investment takes us a step closer to the benefits it will bring to the British people.

“Lower energy bills, thousands more jobs and apprenticeships, and better energy security – this is not only a vote of confidence in the UK as an investment destination, it is our Plan for Change in action.”

The reduced stake comes as EDF is under pressure at home to slash its exposure to foreign projects. It is grappling with huge cost and schedule overruns in the construction of the Hinkley Point C plant in Somerset.

The company’s share of Sizewell C, in Suffolk, has already been reduced passively by the UK Government’s decision to pump further billions into preparatory work on-site.

The latest development suggests EDF’s management have opted to lower the company’s exposure further rather than put more money in to maintain the current stake or increase its size.

EDF’s board was due to meet on Tuesday to confirm the move, Bloomberg reported.

Other investors are expected to formally confirm their backing for Sizewell C when the UK Government takes a final investment decision in the coming weeks.

Centrica is reportedly set to take a 15pc stake, with other potential investors including Amber Infrastructure Partners, Brookfield Asset Management and the Canadian pension fund CDPQ.

Hinkley and Sizewell will each have two reactors, with both projects generating enough electricity to power about 6m homes.

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Cost overruns and delays at Hinkley have been blamed on skills shortages and regulatory hurdles, with the final cost expected to balloon to as much as £48bn in today’s prices.

Sizewell C’s cost is expected to be lower, at around £41bn, thanks to shared designs and supply chains.

Simone Rossi, chief executive of EDF’s UK business, said: “EDF’s intention to invest in Sizewell C is a further sign of its commitment to investing in Britain’s energy security and economic growth.

“It continues over 25 years of investment across the UK. EDF is proud to have restarted new nuclear in the UK, with Hinkley Point C paving the way for Sizewell C and constituting significant ongoing investment.”

The company is currently spending £100m per week on Hinkley Point C.

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