The EDF Group announced a comprehensive set of agreements in principle for the proposed nuclear power station at Hinkley Point C.
Preliminary works for the Hinkley Point C project are well advanced and an agreement has been reached in principle on an investment contract for the planned station. It has an approved EPR reactor design, regulators have awarded relevant nuclear site licences, labour relations agreements are in place and the UK Government has granted permission for construction.
The UK’s strong nuclear regulation regime ensures that all builders and operators must demonstrate that they meet strict compliance requirements for safety and security. A number of suitably qualified Chinese personnel will join the project to work alongside members of the project team, subject to the usual approvals from the UK regulators.
The risk of constructing the power station to budget and schedule will be shared by EDF Group and its partners. Finalising agreements with industrial partners for equity funding is one of the remaining key steps necessary before a final investment decision can be taken. However, the share of equity of the consortium to building the plant is expected to be:
- EDF Group 45-50%
- Areva 10%
- China General Nuclear Corporation (CGN) }
- China National Nuclear Corporation (CNNC) } 30 – 40%
- Discussions are taking place with a shortlist of other interested parties who could take up to 15%
Key terms of the contracts for the four most important suppliers to the project have now been finalised subject to a final investment decision. These are with:
- Bouygues TP/Laing O’Rourke (civil work contract)
- Costain (marine work)
- Alstom (turbines)
- Areva (Instrumentation/ Control, Nuclear Steam Supply System and Nuclear Fuel)
He Yu, Chairman of China Guangdong Nuclear Power Holding Co. (CGN), said: “CGN is interested in the UK electricity market and will play a key role in the HPC project. CGN has a long term target and objective in the UK nuclear new build program.”
Sun Qin, Chairman of China National Nuclear Corporation (CNNC) said: “We think that Hinkley Point C has a great significance in both UK energy market and world nuclear power development. With experience of all aspects of the nuclear industry and 30 years of building nuclear power plants, CNNC will participate in the UK nuclear new build program with the support of EDF and UK government.”