The British and Chinese governments agreed on Wednesday to give Chinese contractors a substantial role in the British nuclear industry.
Initially, the Chinese companies will be minority investors and suppliers to Électricite de France, the French company that holds the contract to build Britain's first new nuclear power plant in years. But the deal announced on Wednesday opens the way for China to invest in future British nuclear projects and possibly to play a larger role in building the plants.
The deal, which involves plans for a nuclear power station called Hinkley Point C and which would result in the first nuclear plant begun in Western Europe since the 2011 Fukushima disaster in Japan made many countries rethink their nuclear energy strategies, is a push for the flagging French industry. France has long been a global leader in nuclear power, but it has stumbled lately in trying to introduce a new generation of technology - the type of reactors that will be used in Britain.
Hinkley Point C, on a headland overlooking the Bristol Channel in southwestern England, is already years behind schedule and well over budget. The cost is now projected at 24.5 billion pounds, or about $38 billion, and the plant is not expected to open before 2025. The site already has an operating nuclear power plant and two older reactors that are being decommissioned.
A state-controlled Chinese company, China General Nuclear Power Corporation, has agreed to invest £6 billion and take a 33.5 percent stake in the Hinckley Point project.
China General expects to help Électricite de France build two more reactors planned for Sizewell, in eastern England. The French company has agreed to help China General win a license to build a Chinese-designed nuclear reactor in Britain at a site in Bradwell, east of London.
The opportunity for China to participate in Britain's nuclear industry has drawn considerable criticism from those who worry that the government of Prime Minister David Cameron has been too eager to receive Chinese investments but not wary enough of the potential security implications of high-technology deals with a country that has a track record of corporate espionage and online spying.
The deal represents an industrial breakthrough for China, which has the world's largest domestic program of building nuclear power plants but has little experience in international projects.
China's state-controlled nuclear power contractors now have the opportunity to obtain the gold seal of Britain, home to one of the world's oldest and most respected nuclear regulatory agencies.
But some experts say Britain is taking too great a chance.
"China would gain access to information that would give it more insight into the vulnerabilities in the U.K.'s critical infrastructure," said Caroline Baylon, a specialist on cybersecurity at Chatham House, a research institute in London.
"As much as possible, your critical infrastructure should be national," Ms. Baylon said.
Although Britain already receives nearly 20 percent of its electricity from its fleet of aging nuclear reactors, the country ceded much of its commercial nuclear industry to France in 2009. That is when Électricite de France, known as EDF, bought nearly all of Britain's reactors.
As in many nations, Britain's electric utilities do not have the financial strength nor the inclination to take the risks involved in building new nuclear power stations. Centrica, a British utility that is a minority partner with EDF on the existing nuclear plants, walked away from a 20 percent stake in the new one, citing delays and rising costs.
Ewan Lawson, a senior research fellow at the Royal United Services Institute, a London research organization, said he was not concerned about the early stages of Chinese involvement in Britain's nuclear programme.
"Essentially, they are funding a French" project, he said.
"In a perfect world, you would have all your infrastructure engineered by your own nationals, over whom you have some degree of surveillance," Mr. Lawson said. "That is not the world the U.K. lives in."
Having not built a new power station since 1995, Britain has little choice but to look to outside suppliers.
The French industry's reputation has been damaged by major delays and cost overruns at projects at Olkiluoto in Finland and Flamanville in France. The French government is revamping the industry, giving EDF a more dominant role over Areva, the company that has played a major role in designing and constructing the reactors that are experiencing problems. Areva has been forced to cut thousands of jobs.
Initially, the Chinese companies will be minority investors and suppliers to Électricite de France, the French company that holds the contract to build Britain's first new nuclear power plant in years. But the deal announced on Wednesday opens the way for China to invest in future British nuclear projects and possibly to play a larger role in building the plants.
The deal, which involves plans for a nuclear power station called Hinkley Point C and which would result in the first nuclear plant begun in Western Europe since the 2011 Fukushima disaster in Japan made many countries rethink their nuclear energy strategies, is a push for the flagging French industry. France has long been a global leader in nuclear power, but it has stumbled lately in trying to introduce a new generation of technology - the type of reactors that will be used in Britain.
Hinkley Point C, on a headland overlooking the Bristol Channel in southwestern England, is already years behind schedule and well over budget. The cost is now projected at 24.5 billion pounds, or about $38 billion, and the plant is not expected to open before 2025. The site already has an operating nuclear power plant and two older reactors that are being decommissioned.
A state-controlled Chinese company, China General Nuclear Power Corporation, has agreed to invest £6 billion and take a 33.5 percent stake in the Hinckley Point project.
China General expects to help Électricite de France build two more reactors planned for Sizewell, in eastern England. The French company has agreed to help China General win a license to build a Chinese-designed nuclear reactor in Britain at a site in Bradwell, east of London.
The opportunity for China to participate in Britain's nuclear industry has drawn considerable criticism from those who worry that the government of Prime Minister David Cameron has been too eager to receive Chinese investments but not wary enough of the potential security implications of high-technology deals with a country that has a track record of corporate espionage and online spying.
The deal represents an industrial breakthrough for China, which has the world's largest domestic program of building nuclear power plants but has little experience in international projects.
| SHOVING AWAY COAL Electricite de France SA and China General Nuclear Power Corp have signed an accord to build three new nuclear power stations in the UK as the nation plans to move away from coal to reduce emissions |
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China's state-controlled nuclear power contractors now have the opportunity to obtain the gold seal of Britain, home to one of the world's oldest and most respected nuclear regulatory agencies.
But some experts say Britain is taking too great a chance.
"China would gain access to information that would give it more insight into the vulnerabilities in the U.K.'s critical infrastructure," said Caroline Baylon, a specialist on cybersecurity at Chatham House, a research institute in London.
"As much as possible, your critical infrastructure should be national," Ms. Baylon said.
Although Britain already receives nearly 20 percent of its electricity from its fleet of aging nuclear reactors, the country ceded much of its commercial nuclear industry to France in 2009. That is when Électricite de France, known as EDF, bought nearly all of Britain's reactors.
As in many nations, Britain's electric utilities do not have the financial strength nor the inclination to take the risks involved in building new nuclear power stations. Centrica, a British utility that is a minority partner with EDF on the existing nuclear plants, walked away from a 20 percent stake in the new one, citing delays and rising costs.
Ewan Lawson, a senior research fellow at the Royal United Services Institute, a London research organization, said he was not concerned about the early stages of Chinese involvement in Britain's nuclear programme.
"Essentially, they are funding a French" project, he said.
"In a perfect world, you would have all your infrastructure engineered by your own nationals, over whom you have some degree of surveillance," Mr. Lawson said. "That is not the world the U.K. lives in."
Having not built a new power station since 1995, Britain has little choice but to look to outside suppliers.
The French industry's reputation has been damaged by major delays and cost overruns at projects at Olkiluoto in Finland and Flamanville in France. The French government is revamping the industry, giving EDF a more dominant role over Areva, the company that has played a major role in designing and constructing the reactors that are experiencing problems. Areva has been forced to cut thousands of jobs.
©2015The New York Times News Service