The UK ousted Chinese company CGN from the Sizewell C nuclear power plant project, the Financial Times reported, adding that options for the 20% stake the Chinese company holds in the project will be sold to institutional investors or listed on the stock exchange. .
Reports of the British government’s intention to pull the Chinese state-owned company from the nuclear power project first emerged in July, also from the Financial Times, which wrote at the time that the plan was to cut CGN from all nuclear power projects in the UK amid a cooling between the two countries which also saw the UK forcing Chinese Huawei out of its 5G network.
The UK’s growing animosity towards China came amid China’s crushing of dissidents in Hong Kong, allegations of crackdown on Muslim minorities such as Uyghurs, and growing concern – not just in the Kingdom United – that reliance on Chinese technology threatens the security of other countries’ supply chains and critical infrastructure.
The Sizewell C nuclear power plant, with an installed capacity of 3.2 GW, is 80% owned by the French EDF. The project would cost $ 27 billion (£ 20 billion) to build, of which CGN was supposed to provide 20%.
Now EDF is reportedly considering what is called a “regulated asset base” for the project, which the FT explains would involve households starting to contribute to the cost of building the Sizewell C through their electricity bills before they start. ‘it doesn’t start to work.
“CGN is a valued partner at Hinkley Point C and a shareholder of Sizewell C until the government’s final investment decision. Negotiations are ongoing and no final decision has been made,” said the UK Department for Business, Energy and Industrial Strategy. Reuters in a statement.
The Chinese company is also a 30% shareholder in another nuclear power plant project in the UK, Hinkley Point C, also majority owned by EDF and currently under construction.
By Charles Kennedy for Oil chauffage
More reads on Oil Octobers: