Engineering news
Osborne shakes hands with the deputy head of China’s National Energy Administration, Ma Kai
Chancellor George Osborne has announced that Chinese firms will be able to own stakes in the next generation nuclear power station projects in Britain.
At first the Chinese companies are expected to hold minority stakes, but over time their involvement could grow, and the firms will be allowed to own a majority stake in nuclear projects.
The first deal could be struck as early as next week, with Chinese investment considered for the new £14 billion plant at the Hinckley C site in Somerset.
EDF, the French-owned company behind the Hinckley project, has been looking for partners to share the costs and has been negotiating with three Chinese state-owned nuclear companies – the Chinese Nuclear Power Group, China National Nuclear Corporation, and State National Power Technology Company.
Chinese investment is being considered for the new £14bn Hinckley C plant
Speaking at the Taishan nuclear power station in China, which is a collaboration between EDF and the China General Nuclear Power Company, Osborne said: “Today is another demonstration of the next big step in the relationship between Britain and China - the world's oldest civil nuclear power and the world's fastest growing civil nuclear power.
“It is an important part of the government's plan for developing the next generation of nuclear power in Britain. It means the potential of more investment and jobs in Britain, and lower long-term energy costs for consumers.”
Energy secretary Ed Davey added: “This is an exciting development, strengthening our relationship with China in a way that will benefit both countries. Investment from Chinese companies in the UK electricity market is welcome, providing they can meet our stringent regulatory and safety requirements.”
Today's announcement follows the signing of a memorandum in Beijing earlier this week, which sets out the strategic framework for collaboration on investment, technology, construction and expertise.
As well as supporting Chinese investment in Britain, the Treasury said the memorandum will ensure that British companies such as Rolls-Royce can benefit from China's multibillion-pound civil nuclear programme.
UK-based International Nuclear Service will be sharing expertise in radioactive waste management, and the company is expected to start training Chinese technicians later this month.