• Home
  • News
  • Coins2Day 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Hinkley Nuclear Project

Britain Approves $24 Billion Hinkley Point Nuclear Plant

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
September 15, 2016, 4:34 AM ET
EDF's Hinkley Point B Nuclear Power Station As Company Agrees Deal With China General Nuclear Power Corp To Build Nuclear Plant
Hinkley Point B nuclear power station, operated by Electricite de France SA's (EDF), left, stands near to groundworks for Hinkley Point C near Bridgwater, U.K., on Thursday, Dec. 17, 2015. Electricite de France SA and China General Nuclear Power Corp. struck a deal in October to build by 2025 the 3.2 gigawatt-plant at Hinkley Point in southwest England. Photographer: Chris Ratcliffe/Bloomberg via Getty ImagesPhotograph by Chris Ratcliffe — Bloomberg via Getty Images

Britain gave the go ahead on Thursday for a $24 billion nuclear power plant, ending weeks of uncertainty that strained ties with China and France and put a question mark over Prime Minister Theresa May’s investment policy.

In a statement, May’s government said it had decided to proceed with the Hinkley Point C project in southwest England after a comprehensive review, but made clear Britain would have greater control over future deals when foreign states were involved in buying stakes in “critical infrastructure”.

May stunned investors by putting Hinkley on hold in July, just hours before a deal was to be signed, saying she needed time to assess the project under which French utility firm EDF would build Britain’s first new nuclear reactor in decades, backed by $8 billion of Chinese cash.

See also: UK’s Theresa May Writes to China’s President and Premier Amid Nuclear Spat

“Having thoroughly reviewed the proposal for Hinkley Point C, we will introduce a series of measures to enhance security and will ensure Hinkley cannot change hands without the government’s agreement,” Greg Clark, business minister, said in a statement.

“Consequently, we have decided to proceed with the first new nuclear power station for a generation.”

The statement said the government would be able to stop the sale of EDF’s controlling stake before completion, without the prior notification and agreement of ministers.

Critics of the deal had expected Britain to try to renegotiate the price, which they say was set too high before oil prices fell, dragging energy costs lower.

But the statement said the price had not changed for the energy which is needed to fill a supply gap as the country’s coal-fired plants are set to close by 2025.

The decision to go ahead with Hinkley goes someway to easing concerns that May, a former interior minister, was closing the door to foreign investment, particularly from China.

According to a former colleague, ex-business minister Vince Cable, May had expressed concern at the “gung-ho” attitude that her predecessor David Cameron took towards courting Chinese investment.

See also: China — The Unwanted Investor

China’s Foreign Ministry did not immediately respond to a request for comment. China began a three-day national holiday on Thursday.

There were also questions about whether the French investor was able to conclude the project after delays on similar schemes and board-level concerns about the high up-front costs for the project.

But an aide to President Francois Hollande said May had called the French leader to say “she supported the launch of the Hinkley project”.

The new controls may, however, affect future deals with foreign energy partners. The government said it would take a “special share” in all future nuclear new construction projects to ensure that significant stakes cannot be sold without its consent.

EDF and China General Nuclear Corporation (CGN) plan to build and operate a new nuclear power station at Bradwell-on-Sea in Essex, southeast England. Bradwell would be a Chinese-led project, using Chinese technology.

About the Author
By Reuters
See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Coins2Day 500
  • Global 500
  • Coins2Day 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Coins2Day Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Coins2Day Brand Studio
  • Coins2Day Analytics
  • Coins2Day Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Coins2Day
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Coins2Day Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Coins2Day Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.