China’s UK nuclear energy ambitions

It is reported that the Department of Energy and Climate Change (DECC) has held high level talks with representatives from China.  A team of nuclear engineers and other representatives from the Shanghai Nuclear Engineering Research and Design Institute (SNERDI), an arm of the huge China National Nuclear Corporation (CNNC), met senior DECC officials in recent days.

Reports suggest that there is keen interest from China to enter the UK’s nuclear power generating market place by developing a plan with DECC to build up to 5 reactors at a cost of over £35 billion.  The initial premise is for CNNC and another state owned organisation, China Guangdong Nuclear Power Corporation, to bid against each other for a stake in the Horizon consortium to construct new atomic plants at Wylfa in Wales and Oldbury in Gloucestershire.  It is also understood that the sites at Bradwell in Essex, Heysham in Lancashire and Hartlepool in County Durham are also of interest to the Chinese state.  The French giant EDF currently has the developmental interest in these sites.

China has operated its own atomic plants since 1994 and Keith Parker, chairman of the Nuclear Industry Association in London, said it was "highly encouraging" that China wanted to invest in the UK. "They have 14 of their own reactors in operation and 25 under construction and they use both Areva and Westinghouse designs that could be used here. It was clear from my discussions with them that they have international ambitions."

It is believed the Chinese see setting up in the UK as an opportunity to show they can operate in one of the world's toughest regulatory environments so they can then move into other markets in Africa and the Middle East.

Whether the Chinese enter the UK market is yet to be seen, however their state backed industry would appear to be aggressively chasing opportunities that the UK market offers and, whether the UK taxpayers’ money goes to France or China, it is certain that this represents an important development in the battle to keep the lights on in the UK.