The British government is ready to take over Chinese shares in the £ 20 billion project to build nuclear power plants on the Suffolk coast. This is the Sizewell C project, a joint venture that CGN (China general nuclear), which ended up on Joe Biden’s blacklist, has signed with the French energy giant EDF. The announcement next month, ahead of the COP26 climate summit. CGN holds a 20 per cent stake in Sizewell. CGN and EDF remain speechless, but the negotiations are at a turning point.
A new outbreak of political tensions
After the pact on Aukus nuclear submarines with the United States and Australia, the British move to take over the shares of the Chinese CGN, the energy giant that has signed an agreement with the French of EDF for the relaunch, risks reigniting of nuclear power in the UK. EDF’s Hinkley Point C power plant in Somerset is also part of the Sino.French projects.
Washington pushed on Westminster to cut China out of British nuclear plans, CGN has long been on the list of unwanted Chinese companies because it is considered too close to Defense. The anti.Chinese baton has passed from Trump to Biden.
Under Whitehall’s plans for Sizewell C, the government could acquire a stake in a corporate vehicle to bring the French back, sharing the costs and reorganization procedures with them.
The French attracted at a later stage
Yeah, what about the French? It seems difficult to take over from the Chinese without offering an alternative solution to the EDF partner. Private investors such as L&G and Aviva would be lured at a later stage in exchange for a funding model backed by the UK government, known as the Regulated Capital Base (RAB).