15 Sep (NucNet): China General Nuclear Company (CGN), the investor in the Hinkley Point C nuclear project that was today approved by the British government, has welcomed the decision and said it is now able to move forward and deliver “much-needed nuclear capacity” at Hinkley Point, Sizewell and Bradwell with its partner, the French state-owned utility EDF.
The British government said today it had decided to proceed with the first new nuclear power station for a generation at Hinkley Point C in England after a comprehensive review of the project and a revised agreement with EDF.
The deal to build the £18bn (€21bn, $23bn) station had been due to be approved with a £6bn investment from CGN before incoming prime minister Theresa May placed the project under review in July 2016. Her decision raised tensions with China and resulted in the government in Beijing questioning the move and saying Britain could not risk driving away Chinese investors.
Apart from its one-third stake in the two EPR units planned for Hinkley Point C, CGN is also aiming to take a share in the construction of two EPR units at Sizewell in Sussex and a Chinese Hualong One reactor Bradwell in Essex. Initial agreements for both projects were signed with EDF last year. Those agreements say CGN would have a 20% stake in Sizewell and a 66.5% stake in Bradwell.
The British government said today ministers will impose a new legal framework for future foreign investment in Britain’s critical infrastructure, which will include nuclear energy and apply after Hinkley.
A statement said the framework includes rules for future foreign investment in British critical infrastructure which mean that after Hinkley, the British government will take “a special share” in all future nuclear new-build projects. This will ensure that significant stakes cannot be sold without the government’s knowledge or consent.
The Office for Nuclear Regulation will be directed to require notice from developers or operators of nuclear sites of any change of ownership or part-ownership. This will allow the government to advise or direct the ONR to take action to “protect national security as a result of a change in ownership, the statement said.
EDF also welcomed today’s go-ahead for the project saying it marks the conclusion of 10 years of preparation and rigorous planning. Jean-Bernard Lévy, chief executive officer of the EDF Group, said the decision marks the relaunch of nuclear in Europe. “It demonstrates the UK’s desire to lead the fight against climate change through the development of low-carbon electricity,” he said.
Vincent de Rivaz, chief executive officer of EDF’s British subsidiary EDF Energy, called the announcement good news for British consumers, a huge boost for British industry and a major step forward in the fight against climate change. He said the strong performance of EDF Energy’s 15 nuclear reactors in Britain underpins its credibility as a nuclear operator and developer.
The London-based Nuclear Industry Association (NIA) said the decision is welcome news for the UK’s nuclear supply chain which is ready to deliver “this important national infrastructure project”. NIA chief executive Tom Greatrex said: “The benefits of nuclear power are clear and the government, trade unions, industry and energy experts are right that it is an important part of the UK’s energy mix. Hinkley will be the first to get shovels in the ground, but we need to secure our energy future and bring more low-carbon power to the grid.”
EDF has said Hinkley Point C will provide 7% of the UK’s electricity over its estimated 60-year lifespan and is scheduled to begin commercial operation in 2025, several years later than planned. It will be the UK’s first new nuclear station since Sizewell B, which began commercial operation 20 years ago, in September 1995.
