Engie announced Wednesday that it has signed a definitive agreement with the Belgian government to extend the lifespan of its Tihange 3 and Doel 4 nuclear reactors.

Under the terms of the agreement, the energy group will invest between 1.6 and 2 billion euros in the project, with the aim of restarting both reactors by November 2025.

The operation of these two reactors, as well as the dismantling work, should maintain around 4,000 jobs (direct, indirect and induced), as well as the recruitment of 200 additional employees in the coming months.

At the same time, a legal structure will be dedicated to the two extended nuclear units, owned equally by Engie and the Belgian State.

A pricing mechanism is to lead to the setting of an initial tariff in 2025, to be updated in 2028 according to the known amount of the final cost of the extension, to cover the period up to 2035.

Finally, a lump sum for future costs related to the treatment of nuclear waste, concerning all Engie nuclear facilities in Belgium, will represent a total amount of 15 billion euros, payable in two instalments.

Quoted in a press release, Engie CEO Catherine MacGregor hails the agreement as a 'balanced' risk-sharing arrangement that removes uncertainty over nuclear waste provisions, while strengthening Belgium's security of electricity supply.

It should be noted that this agreement remains subject to approval by the European Commission.

Listed in Paris, Engie shares rose by 0.5% following these announcements, compared with an increase of around 0.2% for the CAC 40 index.

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