U.K. Clears Way for Chinese Companies to Invest in Nuclear Plants

Researched by Industrial Info Resources (Sugar Land, Texas)--U.K. Finance Minister George Osborne has announced that U.K. nuclear power plants will be open to Chinese investment. The first deal is expected as early as next week, when the government gives the go-ahead for the construction of the $22.6 billion Hinckley C plant in Somerset, southwest England. Chinese investors are expected to team up with Electricite de France Energy (EPA:EDF) (Paris,France) to build the first nuclear plant in a generation.

Speaking on a visit to the Taishan nuclear power site in southern China, Osborne said: "Today is another demonstration of the next big step in the relationship between Britain and China-- the world's oldest civil nuclear power and the world's fastest-growing civil nuclear power. It is an important potential part of the government's plan for developing the next generation of nuclear power in Britain. It means the potential of more investment and jobs in Britain, and lower long-term energy costs for consumers."

The memorandum of understanding includes roles for British companies in China's nuclear programme. The deal is anchored on the memorandum, signed by Osborne in Beijing this week, in which the two governments agree to help each other with their civil nuclear programmes.

The Hinkley C project, in Somerset, will be the first new nuclear power station since 1995. For additional information, see March 20, 2013, article - U.K. Heralds New Age of Nuclear Power.

Hinkley C's construction will be led by the French energy utility EDF, which has been looking for a partner or partners to share the costs. For additional information, see May 7, 2013, article - EDF Looks to China for U.K. Nuclear Partner.

According to the BBC, EDF was negotiating with three Chinese nuclear companies to take up to a 30% stake in EDF Energy's 3.2-GW Hinkley C project: China General Nuclear Power Company (CGN), China National Nuclear Corporation (CNNC) and State Nuclear Power Technology Corporation (SNPTC). Osborne visited all three this week.

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