The proposed nuclear development at Hinkley point in Somerset is once again in troubled waters following news that shares in the French state owned reactor vendor Areva have plummeted by almost a quarter. The company is the only one that can construct the proposed EPR reactor, as well as owning 10% equity in the project. Areva faces legal battles, vast cost escalations and delays of up to 10 years at its current new build projects in Finland and France, for the same reactor type destined for Hinkley. Regarding investment in the Somerset site, majority state owned utility EDF are said to have “balked” at the demands of Chinese state-owned companies China General Nuclear Corporation and China National Nuclear Corporation. Thus negotiations have also begun with Saudi Arabian state owned company Saudi Electric to invest in the Hinkley project. Costs have risen from initial estimates of £10 billion, to £14 billion, to 16 billion, and most recently, the European Commission recommended factoring in potential costs of £24 billion for the construction of the two proposed reactors at Hinkley point. This is all based on the presumption of a 2023 start-up date. However, also reported today, UK Government is said to be conducting a ‘secret’ review into the Hinkley project amidst fears that the 2023 start-up date is a pipe dream. Read more ›
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