Britain to Use Chinese Investment and Technology in Constructing a Nuclear Plant
Constructing a nuclear project in Britain using Chinese investment and technology is a win-win situation for both countries. Britain’s Prime Minister David Cameron will be signing a landmark deal next month that will allow china to construct a nuclear reactor in Essex southeast of England. The nuclear plant will be the first Chinese designed and operated facility in a western developed country. The British government is planning to replace its aging fossil fuel plants with low carbon alternatives and the involvement of the Chinese is key to its nuclear plans.
The Chinese design will be capable of producing 1 gigawatt of electricity, which is enough to satisfy the need of a million British households. It is clear that the nuclear projects are requiring a large up front capital investment and takes a long time to begin earning revenue from generating electricity. So a financial investor in a nuclear project might feel more uncertainty on future returns earned through operational profit. When a investor participates in the development of a nuclear power plant and its construction, operation, fuel cycle and decommission phases. Then there is a chance to eran returns from the provision of range of services as the nuclear project progresses.
In the recent years, Chinese nuclear companies are in discussion with various companies, organizations and research centers in the UK that are interested in investing and localizing the technology for the British market. Discussions with the Hinkley Point C project that is led by Electricite de France SA a electrical producer which is largely owned by the French government. As the project is already in the advanced stages of planning, major developments happened in 2013 as the British energy firm Centrica withdraw its 20 percent stake from the project due to high cost and delays. EDF Group and two Chinese nuclear companies reached an agreement wherein the two Chinese companies will support Hinkley Point C and act as junior partners, cover part of the costs and the follow on plant in Sizewell.
EDF will be the lead in the construction and operation on both sites and EDF will support two Chinese companies in the development of a new atomic plant at Bradwell B.