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Chinese nuclear corporation decides not to get involved in UK’s dubious Hinkley nuclear project

text Hinkley cancelledflag-ChinaCGN Power’s dropped nuke deal in UK is a “sensible move”: analyst. Asian Power,  28 Mar 16   It would’ve locked up a bulk of capital in the long-term.

Last October, China signed a deal with the UK to participate in three UK nuclear power projects, with CGNPC, the parent of CGN Power, owning a 20.0%-66.5% stake in each of the projects.

Under a non-competition deed granted by CGNPC, CGN Power has the option of investing in any UK nuclear project that is either being planned or constructed by the parent group. Thus far, the independent non-executive directors of CGN Power have elected not to pursue the UK projects.

According to CCB International’s Cathy Chan and Felix Lam, the decision by CGN Power’s independent non-executive directors not to get involved in the construction of the UK nuclear projects did not come as a surprise given the company’s strategy of refraining from involving itself in nuclear power projects that do not have at least one unit already in commercial operation.

The UK project does not yet meet this criterion as it is still at the initial stage of development and has several major hurdles to negotiate, not least of which is insufficient funding from other stakeholders, in particular Électricité de France (EDF FP, NR), a French power  company…….. analyst http://asian-power.com/power-utility/news/cgn-powers-dropped-nuke-deal-in-uk-sensible-move-analyst

 

April 1, 2016 - Posted by | business and costs, UK

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