China Warns U.K. Over Hinkley Nuclear Delay

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--China has warned the U.K. that its recent suspension of the £18 billion ($23.7 billion) Hinkley Point C nuclear project threatens future trade relations.

"The China-U.K. relationship is at a crucial historical juncture," wrote China's ambassador to Britain, Liu Xiaoming, in the FT newspaper. "Mutual trust should be treasured even more. I hope the U.K. will keep its door open to China and that the British government will continue to support Hinkley Point--and come to a decision as soon as possible so that the project can proceed smoothly."

The 3,300 megawatt (MW) Hinkley project will be the first new nuclear build project in the U.K. in 25 years and will be capable of generating around 7% of the country's electricity.

He added: "It has not been easy for China and the U.K. to have come this far. As long as both sides cherish what has been achieved and continue to expand and deepen our co-operation across the board, bilateral relations will maintain their strong momentum and work for the wellbeing of both the Chinese and British people."

State-owned China General Nuclear Power Company (CGN) (Shenzhen) holds a one-third share in the project which has been dogged by numerous delays in recent years. Last month, developer Électricité de France SA (EPA:EDF) (Paris, France) finally approved the final investment decision only to discover the new U.K. government had decided to defer the project until another review could be carried out. For additional information, see August 1, 2016, article--EDF Go-Ahead for U.K. Nuclear Project but Government Wavers.

In a related development this week, the U.S. government charged CGN with nuclear espionage. In a 17-page indictment the Justice Department accused CGN engineer Allen Ho with unlawfully conspiring to develop nuclear material in China without U.S. approval.

Xiaoming reminded the U.K. that it was risking its future energy security if it continued to delay its new build nuclear program.

"Nuclear power is central to U.K. energy policy, aimed at meeting the country's long-term needs," he pointed out. "However, a two-decade pause in its nuclear programme means that most of the country's 15 reactors are approaching the end of their intended working life. According to the U.K.'s energy white paper, by 2025 only one nuclear plant will still be running, raising the risk of major power shortages."

Industrial Info has extensively tracked the coming energy issues facing the U.K. in the coming decade as older nuclear and fossil-fuel powered plants--particularly coal-fired plants--are shut down. Last year, spare capacity stood at just 1.2% facing into the winter, which was the lowest in 10 years, according to figures released by the country's electricity grid operator, National Grid. For additional information, see July 23, 2015, article - U.K. Risks Winter Blackouts as Power Stations Close.

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