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Hinkley nuclear decision- .Great for France, China – but what about UK? The Brexit effect

Hinkley C nuclear go-ahead: May caves in to pressure from France and China, Ecologist Oliver Tickell 15th September 2016  “………Great for France, China – but what about us? The Brexit effect

Mrs May is known to have come under strong pressure from both French and Chinese governments to give HPC the go-ahead. Both governments have strong interests in seeing the project going ahead.

In the French case, the EPR reactor has cost EDF and Areva – both companies controlled and mostly owned by the French state – uncountable billions of euros. Four EPRs are under construction, in France, Finland and China. All are running very late and billions of euros over budget, while the French reactor at Flamanville may never open due to a faulty reactor vessel.

That means that HPC represents France’s last chance to present the EPR as a viable reactor for the lucrative nuclear export market, re-establish credibility, and regain value for its so far utterly failed investment in the EPR.

The deal also offers EDF a very high return on investment of over 10% based on the expected construction cost of €24 billion, making it (and UK energy consumers) a valuable ‘cash cow’ for the highly indebted company for many decades to come.

China is also intent on capturing its share of the global export market for nuclear power and HPC is its ‘way in’ to it. As part of the deal, Chinese nuclear company CGN is to get preferential treatment to build a new nuclear power station at Bradwell in Essex to its new, untested ‘Hualong’ reactor design that it intends to promote to international buyers.

So, plenty of good reasons for China and France to want to progress the deal. But what’s in it for the UK? Answer: Brexit. By sucking up to France, the government hopes to win over France as an ally in negotiating a better deal for the UK in Brexit negotiations……….http://www.theecologist.org/News/news_analysis/2988131/hinkley_c_nuclear_goahead_may_caves_in_to_pressure_from_france_and_china.html

September 16, 2016 - Posted by Christina Macpherson | politics international, UK