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UK guarantees nuclear plant deal as China investment announced | UK guarantees nuclear plant deal as China investment announced |
(34 minutes later) | |
China will invest in the Hinkley Point nuclear plant in Somerset, Chancellor George Osborne has announced, saying the UK will guarantee the £2bn deal. | China will invest in the Hinkley Point nuclear plant in Somerset, Chancellor George Osborne has announced, saying the UK will guarantee the £2bn deal. |
Mr Osborne, who is on a five-day tour of China, said the deal would pave the way for a final investment decision by French energy company EDF. | Mr Osborne, who is on a five-day tour of China, said the deal would pave the way for a final investment decision by French energy company EDF. |
He said it would also enable greater collaboration between the countries on the construction of new nuclear plants. | He said it would also enable greater collaboration between the countries on the construction of new nuclear plants. |
Hinkley Point C is expected to provide power for about 60 years. | Hinkley Point C is expected to provide power for about 60 years. |
Mr Osborne said: "Britain was the home to the very first civil nuclear power stations in the world and I am determined that we now lead the way again. | Mr Osborne said: "Britain was the home to the very first civil nuclear power stations in the world and I am determined that we now lead the way again. |
"Nuclear power is cost-competitive with other low carbon technology and is a crucial part of our energy mix, along with new sources of power such as shale gas." | "Nuclear power is cost-competitive with other low carbon technology and is a crucial part of our energy mix, along with new sources of power such as shale gas." |
Earlier this month EDF admitted the construction of the £24.5bn station, which would be Britain's first nuclear power plant for 20 years, would be delayed. | Earlier this month EDF admitted the construction of the £24.5bn station, which would be Britain's first nuclear power plant for 20 years, would be delayed. |
It came after the French firm announced in February that it had pushed back its decision on whether to invest in the plant. | It came after the French firm announced in February that it had pushed back its decision on whether to invest in the plant. |
Mr Osborne said Chinese companies would invest in Hinkley and there was the potential for further investment in the future. | Mr Osborne said Chinese companies would invest in Hinkley and there was the potential for further investment in the future. |
In return they will receive a substantial stake in the project, with the UK government acting as guarantor for the investment. | In return they will receive a substantial stake in the project, with the UK government acting as guarantor for the investment. |
The guarantee will be provided by the government's Infrastructure UK Scheme, which provides finance for projects that have had difficulties raising money from private investors. | |
EDF has struggled to find co-investors for Hinkley, which the government has said will provide up to 7% of Britain's entire energy needs from 2023. | |
EDF, which will continue to control the venture, has agreed to provide electricity from Hinkley at a guaranteed minimum price of £89.50 per MW/hour for 35 years. | EDF, which will continue to control the venture, has agreed to provide electricity from Hinkley at a guaranteed minimum price of £89.50 per MW/hour for 35 years. |
Energy Secretary Amber Rudd said the government would continue to work with EDF to finalise the Hinkley deal. | Energy Secretary Amber Rudd said the government would continue to work with EDF to finalise the Hinkley deal. |
Vincent de Rivaz, chief executive of EDF Energy, said the chancellor's announcement was "further progress towards a final investment decision" on the plant. | Vincent de Rivaz, chief executive of EDF Energy, said the chancellor's announcement was "further progress towards a final investment decision" on the plant. |