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Chancellor promises £2bn for Hinkley Point C

Chancellor promises £2bn for Hinkley Point C

The proposed Hinkley Point C nuclear power station is coming ever-closer to reality, as the chancellor George Osborne has announced a £2 billion guarantee for the project, which will allow the China General Nuclear Corporation (CGN) and the China National Nuclear Corporation (CNNC) to invest in the £24.5 billion reactor.EDF Energy has also promised that the reactor will be delivered on time and without extra investment, despite a relatively long wait for confirmation of funding sources. The French energy company has already obtained letters of intent with CNNC and CGN to take between 30 and 40 per cent of the Hinkley Point C project between them.If the build goes ahead, it will be the first nuclear fission reactor constructed in the UK for more than 20 years.Mr Osborne said: “Nuclear power is cost competitive with other low carbon technology and is a crucial part of our energy mix, along with new sources of power such as shale gas.“So I am delighted to announce this guarantee for Hinkley Point today and to be in China to discuss their investments in Britain’s nuclear industry.“It is another move forward for the golden relationship between Britain and China - the world’s oldest civil nuclear power and the world’s fastest growing civil nuclear power.”Over the next ten years, the UK will need to replace around 25 per cent of its electricity-generating capacity, as a number of ageing coal and nuclear facilities will have to be decommissioned.The latest agreement with China is set to build on the Memorandum of Understanding on fuel cycle collaboration signed with China in 2014, which agreed that the UK would help China to develop greater expertise in fuel cycles and decommissioning practices. In return for this, China promised assistance for the UK in the building of future power stations and related infrastructure.Mr Osborne has also announced that the UK and China will jointly fund a £50 million nuclear research centre, which is set to be located in the UK. 

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