Member Article

China backs £2bn nuclear power deal

The Chancellor of the Exchequer has given the green light to the initial government guarantee for the first nuclear power plant in Britain for 20 years.

While on a five day tour of China, George Osborne announced the new government guarantee, provided by Infrastructure UK, for a new nuclear power station planned for Hinkley Point C in Somerset.

The initial deal is set to be worth around £2bn and will pave the way for a final investment decision by energy company EDF, supported by China General Nuclear Corporation and China National Nuclear Corporation, later this year, and with further amounts potentially available in the longer-term.

The construction and operation of Hinkley Point C will create thousands of jobs in the Somerset region and more widely in the nuclear industry across the UK.

The new plant is expected to produce enough energy to supply seven per cent of the country’s needs, powering around six million homes.

It is also expected to open the door to unprecedented collaboration in the UK and China on the construction of new nuclear power stations.

Earlier this month, the project was delayed shortly after EDF Energy appointed a Balfour Beatty and NG Bailey JV to the scheme. EDF confirmed that the power plant has ran into more delays and will become operational in 2023 as originally planned.

Chancellor George Osborne said: “Britain was the home to the very first civil nuclear power stations in the world and I am determined that we now lead the way again.

“Nuclear power is cost competitive with other low carbon technology and is a crucial part of our energy mix, along with new sources of power such as shale gas.

“So I am delighted to announce this guarantee for Hinkley Point today and to be in China to discuss their investments in Britain’s nuclear industry.

“It is another move forward for the golden relationship between Britain and China – the world’s oldest civil nuclear power and the world’s fastest growing civil nuclear power.”

Energy Secretary Amber Rudd said: “New nuclear power is a vital part of our long-term plan to provide secure, clean energy supplies that hardworking families and businesses can rely on in the decades ahead. “Today’s guarantee is an important step forward for the first new nuclear power station in a generation and the future of our home-grown energy supplies.”

Vincent de Rivaz, chief executive of EDF Energy, said: “The Chancellor’s approval of the infrastructure guarantee is a clear sign of the government’s commitment to Hinkley Point C.

“The government’s determination to bring about a renewal of infrastructure and to attract inward investment to the UK are demonstrated by this good news.

“It is further progress towards a final investment decision on a project which will provide reliable, affordable low carbon electricity for decades.

“We welcome the government’s support for the industrial participation by EDF and its Chinese partners.”

This was posted in Bdaily's Members' News section by Ellen Forster .