Plans for a new nuclear power plant at Hinkley Point C in Somerset are a step closer to fruition, thanks to a £2bn government loan guarantee. French state-owned nuclear company EDF is expected to make a final investment decision on Hinkley Point C later this year, which will be backed by the China General Nuclear Corporation and China National Nuclear Corporation.
The plant is not expected to become operational until after 2023, but its final commissioning date will be updated once an investment decision has been made. Negotiations between EDF and its Chinese partners have dragged on longer than expected as both sides hash out how respective stakes in the plant will be apportioned.
The development will be good news for several UK-listed support service and engineering groups. EDF predicts around 60 per cent of the project's construction value will come from UK companies. Engineering group Amec Foster Wheeler (AMEC) has already won the contract to provide project management services to all of EDF's nuclear power stations as well as its technical offices in Gloucester and East Kilbride. This includes the Hinkley Point site. Other UK engineers, such as WS Atkins (ATK), could also stand to benefit. Atkins already provides support for EDF's existing nuclear facilities in the UK. The group is a heavyweight in the nuclear industry, with service contracts in the US and the Middle East, as well as in the UK.
The plant at Hinkley Point C will be the first new nuclear plant in the UK in 20 years and is expected to produce energy to supply 7 per cent of the country's needs.
