Yesterday, Prime Minister David Cameron and the Chinese President Xi Jinping signed a Strategic Investment Agreement for the construction and operation of the proposed Hinkley Point C nuclear power station in Somerset. The Heads of Terms of a wider UK partnership to develop new nuclear power stations at Sizewell in Suffolk and Bradwell in Essex has also been signed.
The signing has paved the way for the Hinkley Point C project to go ahead and sets the steps for a final investment decision. These include finalisation of long form documentation based on Head of Terms signed today, finalisation by EDF of its financing plan, final approval by the boards of EDF and CGN (China General Nuclear Power Corporation) clearance by merger control authorities in China and Europe.
EDF and CGN have signed the Heads of Terms of an agreement in principle to develop Sizewell C in Suffolk to a final investment decision with a view to build and operate two EPR reactors. During the development phase EDF Group will take an 80% share and CGN will take a 20% share. As part of the planning process, EDF’s initial proposals for Sizewell C were published in November 2012 and the first round of formal consultation with local communities has already taken place.
Caroline Williams, Chief Executive of Norfolk Chamber said: “This new nuclear programme will give the country the secure, low carbon and reliable electricity it needs as it renews old generating capacity and takes action on climate change. More importantly for our region, the signing of the Strategic Investment Agreement for Hinkley Point C will bring the development of the Sizewell C project a step closer. EDF are NorfolkChamber Gold Patrons and we will continue to work in partnership with them to ensure the local business community are engaged with the Sizewell C project.”
He Yu, Chairman of China General Nuclear Power Corporation (CGN) said: “Entering the UK’s nuclear market marks a new phase for CGN. At the same time this is also a triple-win for the existing nuclear energy partnership between China, France and the UK. CGN is highly committed to delivering safe, cost efficient, and sustainable energy and to supporting the UK’s goal of becoming a low-carbon society.”
EDF Energy CEO Vincent de Rivaz said: “Hinkley Point C and successive nuclear projects will guarantee the UK the reliable, secure low carbon electricity it needs in the future. Nuclear power will save customers money compared with other energy options and provide a huge boost to British industrial strength, jobs and skills both in Britain and abroad. Yesterday’s announcements are also good news in the fight against climate change”
