French Government Will Help Fund Hinkley Point C Nuclear Project
The French government said it would fund EDF so that the utility can proceed with the £18 billion ($25.6 billion) project at Hinkley Point C nuclear plant in the U.K.
Economics Minister Emmanuel Macron said in The Guardian that additional investment will be finalized in May. Macron also said the government will recapitalize EDF if necessary, and that not building the dual-unit, 3.2-GW plant would be a “mistake.” EDF CEO Jean-Bernard Lévy told employees the company would not continue with the project unless it received additional government aid.
The project has been backed by the French and British governments, and China General Nuclear Corp. agreed to buy a one-third stake in the project. However, many oppose it. EDF Chief Financial Officer Thomas Piquemal resigned after saying the project would jeopardize the company and should be delayed while finances are bolstered. The U.K. government agreed to pay double the market price of each unit of electricity on top of loan guarantees. EDF also has to set aside £38 billion ($55 billion) to upgrade its existing French nuclear reactors.
