PARIS: Belgium and ENGIE, the French energy giant, have signed a final agreement to extend the operation of two nuclear reactors, Tihange 3 and Doel 4, until 2035. The agreement also covers the obligations related to nuclear waste management for all ENGIE’s nuclear facilities in Belgium.

Catherine MacGregor, Chief Executive Officer of ENGIE, stated: “We are very pleased to announce the final signature of this agreement, which allows a balanced sharing of risks associated with the extended operation of the two nuclear units and eliminates uncertainties for ENGIE Group related to the evolution of nuclear waste liabilities. Our teams are working hard on implementing the LTOs as quickly as possible, to strengthen security of electricity supply in Belgium.”

The agreement, signed on 13 December, confirms the key principles of the framework agreement reached on 21 July 2023. These include:

• The implementation of Flexible Long-Term Operation (Flex LTO), a project that aims to ensure the safety and reliability of the nuclear units, with an estimated investment of between €1.6bn and €2bn.
• The creation of a joint venture, owned equally by the Belgian State and ENGIE, to operate the two extended nuclear units.
• The adoption of a Contract for Difference mechanism, which will guarantee a stable and fair remuneration for electricity generation from the nuclear units. The remuneration will be based on the actual cost of extending the operation of the nuclear units, which will be determined by the Federal Agency for Nuclear Control (AFCN) in 2025 and updated in 2028.
• The payment of a fixed amount of €15bn by ENGIE to cover the future costs of nuclear waste treatment, in two instalments depending on the category of waste.
• The removal of restrictions on Electrabel, ENGIE’s subsidiary in Belgium, to operate outside Europe.

The agreement will have no impact on ENGIE’s medium-term guidance, as the increase in its commitments for nuclear waste provisions was already recognised on 30 June 2023.

The agreement also sets out the technical and operational conditions for restarting the two nuclear units from November 2025, with full guarantees of nuclear safety. The extension of the nuclear units will preserve around 4,000 jobs and create 200 new ones in the coming months.

The agreement is still subject to the approval of the European Commission and the vote of the Belgian Parliament.

ENGIE is a global leader in low-carbon energy and services, with 96,000 employees, clients, partners and stakeholders. The Group aims to accelerate the transition towards a carbon-neutral economy, through reduced energy consumption and more environmentally friendly solutions.

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