EU approves state aid to extend life of Engie's Belgian nuclear reactors

BRUSSELS (Reuters) -EU competition regulators on Friday approved Belgium's plan to grant state aid to French energy company Engie's Belgian business to extend the lifespan of two nuclear reactors, closing an in-depth investigation opened last July.

Belgium and Engie had clinched a deal in December 2023 to extend the life of the two nuclear reactors - Doel 4 near Antwerp and Tihange 3 near Liege - to preserve the security of electricity supply in Belgium and neighbouring countries.

Under this deal, the Belgian State and Electrabel will issue shareholder loans and inject equity for a total of around 2 billion euros ($2.09 billion) to cover the capital cost of the extension.

It also includes Electrabel transferring liabilities, related to the long-term storage and final disposal of nuclear waste and spent fuel to the Belgian state for a lump sum payment of 15 billion euros.

The reactors are majority-owned by Engie's Belgian unit Electrabel while EDF subsidiary Luminus holds a minority stake.

When opening its investigation in July, the Commission said it wanted to focus on the financial arrangements as well as on the proportionality of the amount of the transferred nuclear waste liabilities.

"The Commission concluded that the aid is necessary and appropriate to achieve the objective pursued, as well as proportionate as it is limited to the minimum necessary, while competition distortions caused by the measure are minimised," the Commission said in a statement.

"On this basis, the Commission approved the Belgian measure under EU state aid rules."

($1 = 0.9554 euros)

(Reporting by Benoit Van Overstraeten; Editing by Dominique Vidalon and Jane Merriman)