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| Hinkley Point gets final investment approval from France's EDF | |
| (about 4 hours later) | |
| Investment in the first new nuclear plant to be built in the UK in 20 years - at Hinkley Point, Somerset - has secured final approval. | |
| The decision came at a board meeting of French utility EDF - the company financing most of the £18bn project. | |
| Following that agreement, legally binding contracts will be signed and construction work can begin. | |
| But critics warn of environmental damage and potential escalating costs. | But critics warn 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. | 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. | EDF hopes to have more than 2,500 workers on site by next year. |
| Announcing the approval of investment, EDF described the plant as "a unique asset for French and British industries", saying it would benefit the nuclear sectors in both countries and would give a boost to employment. | |
| The announcement was immediately welcomed by employers' group the CBI, the Nuclear Industry Association and engineering workers' union GMB. | |
| Ahead of the vote on whether to approve the Hinkley project, Gerard Magnin, an EDF board member, resigned, saying the project was "very risky" financially. | |
| Earlier this year, EDF's finance director, Thomas Piquemal, also resigned amid reports he thought Hinkley could damage EDF itself. | Earlier this year, EDF's finance director, Thomas Piquemal, also resigned amid reports he thought Hinkley could damage EDF itself. |
| Cost warning | Cost warning |
| Hinkley Point C is expected to provide 7% of the UK's total electricity requirement. | Hinkley Point C is expected to provide 7% of the UK's total electricity requirement. |
| The project has been hit in recent months by concerns about EDF's financial capacity. | 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. | 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. | 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. | 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." | "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." |
| The project has many critics in Britain too. | The project has many critics in Britain too. |
| "The price of every other form of energy is falling. That includes gas, which is plentiful and wind and solar are both coming right down in price," Nick Butler, visiting professor and chair of King's Policy Institute at King's College London, told the BBC. | "The price of every other form of energy is falling. That includes gas, which is plentiful and wind and solar are both coming right down in price," Nick Butler, visiting professor and chair of King's Policy Institute at King's College London, told the BBC. |
| "We should step back and review it. The danger of what we are getting into is that are now locked into a very high price for a very long time." | "We should step back and review it. The danger of what we are getting into is that are now locked into a very high price for a very long time." |
| 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". | 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". |
| 'Economic boost' | 'Economic 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. | 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. | "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." | "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". | 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. | The campaign group added that more investment for renewable energy like offshore wind was needed. |
| Hinkley Point timeline | Hinkley Point timeline |
| Jan 2006 - Government proposes nuclear as part of future energy mix | Jan 2006 - Government proposes nuclear as part of future energy mix |
| Mar 2013 - Construction of Hinkley Point approved | Mar 2013 - Construction of Hinkley Point approved |
| Oct 2013 - UK government agrees £92.50 per megawatt-hour will be paid for electricity produced at the Somerset site - around double the current market rate at the time | Oct 2013 - UK government agrees £92.50 per megawatt-hour will be paid for electricity produced at the Somerset site - around double the current market rate at the time |
| Oct 2015 - EDF signs investment agreement with China General Nuclear Power Corporation (CGN) | Oct 2015 - EDF signs investment agreement with China General Nuclear Power Corporation (CGN) |
| July 2016 - EDF board meets on 28 July to consider final investment decision | July 2016 - EDF board meets on 28 July to consider final investment decision |