Dutch government offers to buy 70% of Borssele nuclear plant to reduce CO2 emissions

The caretaker Dutch government plans to take a majority ownership in the Borssele nuclear power plant as part of its strategy to cut CO2 emissions. Climate and Energy Minister Sophie Hermans (VVD) informed the Tweede Kamer that the cabinet has decided to make a nonbinding offer for the Zeeland Energy Holding Company (Zeeuwse Energie Houdstermaatschappij , ZEH), which holds 70 percent of the plant’s shares.

Financial details of the bid have not been disclosed. A nonbinding offer marks the start of negotiations, and the cabinet stated it does not want to reveal its strategy at this stage. ZEH is owned by the province of Zeeland and several Zeeland municipalities. The remaining 30 percent of the Borssele shares belong to the energy company RWE.

The government has set aside 14.5 billion euros in the Climate Fund to finance nuclear energy. That sum will reportedly not be sufficient to cover the estimated 20 billion to 30 billion euros needed to build the first two new reactors. Ultimately, the cabinet plans to construct four new nuclear plants. The same funding must also pay for the costs of extending Borssele’s operational life.

Over a year ago, the previous cabinet initiated exploratory talks on the future of the plant. These discussions led to the current step. If the government and the current owners reach an agreement on the sale, the Tweede Kamer will be consulted before any deal is finalized.

The cabinet aims to expand nuclear energy to help reduce emissions and intends to keep the Borssele facility operating longer. The site in Zeeland is also among the preferred locations for building two new nuclear reactors, although construction is not expected to be completed before the late 2030s.