UK Government Backs £20 Billion Sizewell C Nuclear Plant and Says Chinese Company Not Involved

UK Government Backs £20 Billion Sizewell C Nuclear Plant and Says Chinese Company Not Involved
Undated image of protesters from the Stop Sizewell C and Together Against Sizewell C campaign groups outside EDF's Sizewell B nuclear power station in Suffolk. PA
Chris Summers
Updated:

Business secretary Grant Shapps has confirmed a Chinese company is “no longer involved” in plans for a new nuclear power station, Sizewell C, in Suffolk on the east coast of England.

Shapps made the announcement on Tuesday as he confirmed the government was giving the go-ahead to the £20 billion ($24 billion) project—which the Treasury will invest £700 million ($840 million) in—subject to consultation and planning permission being granted.

France’s EDF Energy, which is building the Hinkley Point C reactor in Somerset, is the majority partner behind Sizewell C, but SNP energy spokesman Alan Brown had asked the business secretary if China General Nuclear would play a part in the project.

Shapps told MPs, “I can confirm to him that China are now bought out of the deal on Sizewell and the money yesterday ensured that they are no longer involved in this particular development.”

CGN was originally a partner in the project but, with the passing of the National Security and Investment Act, it is no longer considered acceptable for a Chinese-owned company to be a key partner in a critical British infrastructure project.

The chair of the Intelligence and Security Committee, Julian Lewis, asked the government to “confirm that we will have no future dependency on China for our nuclear power stations.”

Shapps replied, “I can certainly confirm the case of Sizewell C, as I mentioned earlier, that we are making sure that the Chinese element of that is no longer involved.”

He added, “We don’t have a principled objection apart from where issues of national security are concerned and things like energy provision are very much in our sights.”

On Monday night Prime Minister Rishi Sunak said the “golden era” of Sino–British relations was over and he cited a recent decision to order a Chinese-owned company to sell the UK’s biggest microchip company after it had acquired it.
Sizewell A was built on the North Sea coast in the early 1960s, was decommissioned in 2006, and is currently subject to an environmental management plan (pdf).
An undated map showing the proposed site of the Sizewell C nuclear power station in relation to the existing plants, in Suffolk, England. (PA)
An undated map showing the proposed site of the Sizewell C nuclear power station in relation to the existing plants, in Suffolk, England. PA

Sizewell B was constructed in the late 1980s and is due to be decommissioned in 2035, although its operator EDF Energy said its life could be extended until 2055.

The third nuclear power station in the area will create 10,000 permanent and highly-skilled jobs as well as thousands in construction.

It will also supply “reliable low-carbon power to the equivalent of six million homes for more than 50 years” when it comes online some time in the 2030s.

Shapps said the government would set up a new quango, Great British Nuclear (GBN), which would develop other nuclear projects beyond Sizewell C.

Wylfa in Anglesey, north Wales, and Oldbury in south Gloucestershire have been identified as possible sites for new power stations and GBN will be given the task of identifying other potential sites.

Generally nuclear power stations have to be built beside the sea, or large lakes, because they require vast amounts of water for their cooling processes.

The Fukushima disaster in Japan showed the dangers of being close to the sea, but Britain’s coast is unlikely to suffer a tsunami as it is not in an area of seismic activity.

The plant in Suffolk, developed by French energy giant EDF, will be the second of a new generation of nuclear power reactors, after the delayed Hinkley Point C scheme in Somerset which is under construction, but has seen costs climb since it was first given the go-ahead.

EDF’s Chief Executive, Simone Rossi, said Sizewell C would replicate the design at Hinkley Point C, which should ensure it comes in on time and on budget.

He said, “It will deliver another big boost to jobs and skills in the nuclear industry and provide huge new opportunities for communities in Suffolk.”

Shapps said: “Global gas prices are at record highs, caused by [Russian President Vladimir] Putin’s illegal march on Ukraine. We need more clean, affordable power generated within our borders, British energy for British homes.”

“Today’s historic deal giving government backing to Sizewell C’s development is crucial to this, moving us towards greater energy independence and away from the risks that a reliance on volatile global energy markets for our supply comes with,” he said.

The government also set out plans on Tuesday to reduce Britain’s demand for energy by 15 percent by 2030, with a new £1 billion Eco+ energy efficiency scheme.

It will also go ahead with a public awareness campaign to save energy this winter, something Sunak’s predecessor Liz Truss apparently vetoed because she felt it represented a “nanny state” attitude.

The Chancellor of the Exchequer, Jeremy Hunt, announced plans to back the project in the autumn statement and on Tuesday he said, “Today’s investment in Sizewell C represents the biggest step on our journey to energy independence, the first state backing for a nuclear project in over 30 years.”

“Together with our drive to improve the nation’s energy efficiency, this package will help to permanently bring down energy bills and stop Britain being at the mercy of global gas prices beyond our control,” Hunt said.

But Britain’s only Green MP, Caroline Lucas, wrote on Twitter: “Bone-headed & senseless decision. Govt says #SizewellC is vital to meet 2035 electricity decarbonisation target, but its own impact statement found we won’t get supply for at least another 13-17 years - do the maths! Nuclear is hugely costly & simply can’t help meet 2035 target.”
PA Media contributed to this report.
Chris Summers
Chris Summers
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Chris Summers is a UK-based journalist covering a wide range of national stories, with a particular interest in crime, policing and the law.
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