PARIS—Electricité de France SA will go ahead with the $26 billion nuclear-reactor project at Hinkley Point in the U.K. after the debt-laden French power group approved a capital increase on Friday, Chief Executive Jean-Bernard Lé vy said Monday.

Mr. Lé vy said the project—which prompted EDF Chief Financial Officer Thomas Piquemal to quit last month over concerns about financing—is essential for the future of the French nuclear sector. The project will secure French jobs and technological independence, he said.

"If we want to continue to have nuclear power in France, we have to do Hinkley Point," Mr. Lé vy said in an interview on French radio station Europe1. "I say yes to Hinkley Point," he added.

EDF said Friday its board had approved a â,¬4 billion ($4.49 billion) capital increase led by the French state before the end of the year. EDF will also sell some €10 billion in assets by 2020.

Union representatives at EDF have said the Hinkley Point project would saddle EDF with too much debt.

Mr. Lé vy said he would consult with unions in the coming days or weeks to get their opinion on the project after the announcement of the capital increase.

"The costs are known and perfectly under control. The project is very profitable," Mr. Lé vy said.

Write to William Horobin at William.Horobin@wsj.com

(END) Dow Jones Newswires

April 25, 2016 03:25 ET (07:25 GMT)