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Released October 21, 2013 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - The U.K.'s first new nuclear power project in 20 years has overcome a major obstacle following an agreement between the U.K. government and the main contractor, Electricite de France (EPA:EDF) (Paris).
EDF and the U.K. Government have reached commercial agreement on the key terms of a proposed investment contract for the Hinkley Point C nuclear power station in Somerset. A final investment on the £16 billion ($25.8 billion) project has been delayed as EDF and the government haggled over the price paid for power produced under the government's contracts for difference (CfD) scheme. The government has agreed to a 'strike price' of £89.50 per megawatt hour (MWh) if EDF's other planned nuclear project at Sizewell C goes ahead. If not, the Hinkley Point C strike point will be £3/MWh higher at £92.50/MWh.
The news comes just days after Industrial Info reported on the government clearing the way for Chinese companies to invest in U.K. nuclear projects. EDF has confirmed that two Chinese companies, China General Nuclear Power Company (CGN) and China National Nuclear Corporation (CNNC), will become minority shareholders in the project with a joint stake of between 30-40%. French engineering company Areva S.A. (EPA:CEI) (Paris, France) will hold a 10% stake. For additional information, see October 18, 2013, article - U.K. Clears Way for Chinese Companies to Invest in Nuclear Plants.
Prime Minister, David Cameron, said: "As part of our plan to help Britain succeed, after months of negotiation, today we have a deal for the first nuclear power station in a generation to be built in Britain. This deal means £16bn of investment coming into the country and the creation of 25,000 jobs, which is brilliant news for the South West and for the country as a whole. As we compete in the tough global race, this underlines the confidence there is in Britain and makes clear that we are very much open for business. This also marks the next generation of nuclear power in Britain, which has an important part to play in contributing to our future energy needs and our longer term security of supply".
The 3,300-megawatt (MW) Hinkley Point C nuclear power plant will use two European Pressurised Reactors (EPRs), which will be capable of generating enough power for around 5 million homes - around 7% of the U.K.'s total electricity demand - when they are commissioned in 2018. The project will be overseen by Nuclear New Build (NNB) Generation Company (NNB GenCo), which was formed by EDF.
Henri Proglio, Chairman and CEO of EDF Group, added: "The agreement in principle reached today with the British government significantly strengthens the industrial and energy co-operation between France and the United Kingdom. The EPR project at Hinkley Point represents a great opportunity for the French nuclear industry in a context of a renewal of competencies."
In March this year, the U.K. heralded the start of a new nuclear age for the country when the Department of Energy and Climate Change (DECC ) granted planning consent to the construction of a new nuclear plant at Hinkley Point in Somerset, the first new nuclear power station in the U.K. since 1995. For additional information, see March 20, 2013, article - U.K. Heralds New Age of Nuclear Power.
View Project Report - 300009866
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
EDF and the U.K. Government have reached commercial agreement on the key terms of a proposed investment contract for the Hinkley Point C nuclear power station in Somerset. A final investment on the £16 billion ($25.8 billion) project has been delayed as EDF and the government haggled over the price paid for power produced under the government's contracts for difference (CfD) scheme. The government has agreed to a 'strike price' of £89.50 per megawatt hour (MWh) if EDF's other planned nuclear project at Sizewell C goes ahead. If not, the Hinkley Point C strike point will be £3/MWh higher at £92.50/MWh.
The news comes just days after Industrial Info reported on the government clearing the way for Chinese companies to invest in U.K. nuclear projects. EDF has confirmed that two Chinese companies, China General Nuclear Power Company (CGN) and China National Nuclear Corporation (CNNC), will become minority shareholders in the project with a joint stake of between 30-40%. French engineering company Areva S.A. (EPA:CEI) (Paris, France) will hold a 10% stake. For additional information, see October 18, 2013, article - U.K. Clears Way for Chinese Companies to Invest in Nuclear Plants.
Prime Minister, David Cameron, said: "As part of our plan to help Britain succeed, after months of negotiation, today we have a deal for the first nuclear power station in a generation to be built in Britain. This deal means £16bn of investment coming into the country and the creation of 25,000 jobs, which is brilliant news for the South West and for the country as a whole. As we compete in the tough global race, this underlines the confidence there is in Britain and makes clear that we are very much open for business. This also marks the next generation of nuclear power in Britain, which has an important part to play in contributing to our future energy needs and our longer term security of supply".
The 3,300-megawatt (MW) Hinkley Point C nuclear power plant will use two European Pressurised Reactors (EPRs), which will be capable of generating enough power for around 5 million homes - around 7% of the U.K.'s total electricity demand - when they are commissioned in 2018. The project will be overseen by Nuclear New Build (NNB) Generation Company (NNB GenCo), which was formed by EDF.
Henri Proglio, Chairman and CEO of EDF Group, added: "The agreement in principle reached today with the British government significantly strengthens the industrial and energy co-operation between France and the United Kingdom. The EPR project at Hinkley Point represents a great opportunity for the French nuclear industry in a context of a renewal of competencies."
In March this year, the U.K. heralded the start of a new nuclear age for the country when the Department of Energy and Climate Change (DECC ) granted planning consent to the construction of a new nuclear plant at Hinkley Point in Somerset, the first new nuclear power station in the U.K. since 1995. For additional information, see March 20, 2013, article - U.K. Heralds New Age of Nuclear Power.
View Project Report - 300009866
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
