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China Agrees to Invest in New Nuclear Power Plants in the UK
Oct. 21, 2015 09:44AM PST
Energy InvestingWorld Nuclear News reported that China has agreed to invest in EDF Energy’s Hinkley nuclear project in the UK. The deal will see China take a one-third interest in the project to build a new nuclear power plant and take share in two further plants.
World Nuclear News reported that China has agreed to invest in EDF Energy’s Hinkley nuclear project in the UK. The deal will see China take a one-third interest in the project to build a new nuclear power plant and take share in two further plants.
As quoted in the market news:
A final investment decision for the Hinkley project by EDF Energy is expected by the end of the year. Under a deal agreed during the second day of a state visit by Chinese president Xi Jinping to the UK, China General Nuclear (CGN) will invest £6 billion ($9 billion) in EDF Energy’s project to construct the Hinkley Point C plant.
Under the Strategic Investment Agreement signed today, EDF’s share in project will be 66.5% and CGN’s will be 33.5%. EDF said it intends to offer other investors stakes in the £18 billion ($28 billion) project, but will keep at least a 50% stake itself. CGN will make its investment in the UK through its new company called General Nuclear International.
EDF Energy said “Today’s signing paves the way for the Hinkley Point C project to go ahead and sets the steps for a final investment decision.” This will be subject to: finalisation of “long form documentation” based on the Head of Terms agreed today; finalisation by EDF of its financing plan; approval by the boards of both EDF and CGN; and, clearance by merger control and other governmental authorities in China and Europe.
The Hinkley Point C plant – the first new nuclear power station built in the UK in almost 20 years – will comprise two EPR reactors, with first operation scheduled for 2025. Together, the two reactors will provide about 7% of the UK’s electricity.