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EU approves state assistance to Engie's Belgian reactors to prolong their life span

EU approves state assistance to Engie's Belgian reactors to prolong their life span

The EU Competition regulators approved on Friday the Belgian plan to grant aid to French energy giant Engie's Belgian subsidiary to extend two nuclear reactors' lifespan, concluding an in-depth inquiry that began last July.

In December 2023, Belgium and Engie signed a contract to extend the lives of two nuclear reactors in Belgium. These are Doel 4, near Antwerp, and Tihange 3, near Liege. This was to ensure the safety of electricity in Belgium and its neighbouring countries.

In this agreement, Electrabel and the Belgian State will provide shareholder loans as well as inject equity totaling around 2 billion euro ($2,09 billion) in order to cover the capital costs of the extension.

It also includes Electrabel transferring its liabilities related to long-term storage, final disposal and nuclear wastes and spent fuels to the Belgian government for a lump-sum payment of 15 billion euro.

Engie's Belgian subsidiary Electrabel owns the majority of the reactors, while EDF subsidiary Luminus has a minority stake.

The Commission stated that when it opened its investigation in July of this year, it would focus on both the financial arrangements and the proportionality of transferred liabilities.

The Commission stated that it concluded the aid was necessary and appropriate for achieving the goal pursued. It also found the aid to be proportionate, since the amount of the assistance is kept to a minimum.

The Commission has approved the Belgian state aid measure on this basis." $1 = 0.9554 Euros (reporting and editing by Dominique Vidalon, Jane Merrill)

(source: Reuters)