UK Hinkley Point set to get final investment approval from France's EDF

Investment in the first new nuclear plant to be built in the UK in 20 years - at Hinkley Point, Somerset - is set for final approval later on Thursday.

The French utility, EDF - the company financing most of the £18bn project - is holding a board meeting at which it is expected to approve the investment.

Following that agreement, legally-binding contracts will be signed and construction work can begin.

But critics are afraid of environmental damage and potential escalating costs.

They are also concerned that the plant is being built by foreign governments. One third of the £18bn cost is being provided by Chinese investors.

EDF hopes to have more than 2,500 workers on site by next year.

Hinkley Point C is expected to provide 7% of the UK's total electricity requirement.

Costs

 

The project has been hit in recent months by concerns about EDF's financial capacity.

Despite the Chinese investment, Hinkley Point would remain an enormous undertaking for the stressed French company, which has had to raise money from its owners.

Earlier this week EDF shareholders approved plans to issue new shares to raise 4bn euros (£3.4bn) to help pay for the project.

The French state, which owns 85% of EDF, will buy €3bn worth of new shares in the fundraising.

But Mycle Schneider who used to advise the French government on nuclear and the environment, told the BBC that neither the state nor the company were fully on board: "There is now a large front inside EDF, inside the nuclear establishment in France, advising against the construction because the sheer size of it could put not only the company EDF at risk, but this could actually put the whole state finances at risk."

Ahead of the decision, EDF said Hinkley Point was a "unique asset for French industry as it would benefit the whole of the nuclear industry and support employment in major companies and smaller enterprises in the sector".

'Boost'

Although French unions are urging the company to push back the decision until the company is in a better financial position, UK unions have welcomed the project.

"We urge the EDF board to give the financial go-ahead on a project which will generate thousands of decent skilled jobs and help meet the energy needs of the UK for generations to come," said Unite national officer for energy Kevin Coyne.

"The cost of not doing so could result in the lights going out in Britain and the West Country missing out on the much-needed economic boost which this major infrastructure project would bring."

Environmentalists are concerned about the plan. Greenpeace said there wasn't "a shred of evidence that Hinkley can be built on time or on budget, and if it hits the same problems as its predecessors, it can't be relied on to keep the lights on in the UK". 

The campaign group added that more investment for renewable energy like offshore wind was needed.