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| EDF board member resigns ahead of Hinkley Point nuclear power station vote | EDF board member resigns ahead of Hinkley Point nuclear power station vote |
| (3 days later) | |
| A board member of the French energy giant EDF has resigned ahead of a vote to give the green light to construction of the controversial Hinkley Point nuclear power station in Somerset. | A board member of the French energy giant EDF has resigned ahead of a vote to give the green light to construction of the controversial Hinkley Point nuclear power station in Somerset. |
| Gerard Magnin, one of 18 board members, quit today saying that the £18bn project is too financially risky for EDF and will divert France away from investment in renewable energy. | Gerard Magnin, one of 18 board members, quit today saying that the £18bn project is too financially risky for EDF and will divert France away from investment in renewable energy. |
| The resignation of Magnin, who has a background in alternative energy, is not expected to derail EDF's approval for the project today. | The resignation of Magnin, who has a background in alternative energy, is not expected to derail EDF's approval for the project today. |
| But it signals growing doubts about Hinkley Point and the financial capacity for EDF to deliver the UK's first new nuclear power station in 20 years. | But it signals growing doubts about Hinkley Point and the financial capacity for EDF to deliver the UK's first new nuclear power station in 20 years. |
| The firm's chief financial officer, Thomas Piqemal, resigned in March over the project, saying it would jeopardise EDF's financial situation. | The firm's chief financial officer, Thomas Piqemal, resigned in March over the project, saying it would jeopardise EDF's financial situation. |
| “As a board member proposed by the government shareholder, I no longer want to support a strategy that I do not agree with,” Magnin wrote in a letter to EDF chief executive Jean-Bernard Levy which has been seen by Reuters. | “As a board member proposed by the government shareholder, I no longer want to support a strategy that I do not agree with,” Magnin wrote in a letter to EDF chief executive Jean-Bernard Levy which has been seen by Reuters. |
| EDF is listed on the French stock exchange but the French state retains an 81 per cent stake. | EDF is listed on the French stock exchange but the French state retains an 81 per cent stake. |
| When the project to build a state-of-the art European Pressurized Reactor (EPR) on the Somerset coast was originally outlined in October 2014 EDF was only supposed to take a 50 per cent stake. | When the project to build a state-of-the art European Pressurized Reactor (EPR) on the Somerset coast was originally outlined in October 2014 EDF was only supposed to take a 50 per cent stake. |
| The rest was supposed to be financed by Chinese state companies and another majority state-owned French-nuclear engineering firm Areva. | The rest was supposed to be financed by Chinese state companies and another majority state-owned French-nuclear engineering firm Areva. |
| But Areva has subsquently stumbled financially and its nuclear unit has been absorbed by EDF. And the Chinese have said they will fund no more than a third of the project, leaving EDF to finance 66 per cent of Hinkely Point. | But Areva has subsquently stumbled financially and its nuclear unit has been absorbed by EDF. And the Chinese have said they will fund no more than a third of the project, leaving EDF to finance 66 per cent of Hinkely Point. |
| Since January 2015 EDF's share price has fallen by 50 per cent and its market capitalisation is just €22bn, less than the entire Hinkley Point project value. | Since January 2015 EDF's share price has fallen by 50 per cent and its market capitalisation is just €22bn, less than the entire Hinkley Point project value. |
| The company, which has €37.4bn of debt, also needs to spend €50bn to upgrade its French nuclear plants over the next decade. | The company, which has €37.4bn of debt, also needs to spend €50bn to upgrade its French nuclear plants over the next decade. |
| “Let's hope that Hinkley Point will not drag EDF in the same abyss as Areva” said Magnin in his letter. | “Let's hope that Hinkley Point will not drag EDF in the same abyss as Areva” said Magnin in his letter. |
| EDF unions have six seats on the board and have suggested they might vote against the Hinkley Point investment, arguing that it could jeopardise the company's future. | EDF unions have six seats on the board and have suggested they might vote against the Hinkley Point investment, arguing that it could jeopardise the company's future. |
| The Hinkley Point reactor is also controversial in the UK as the UK government has agreed to buy electricity from the plant for 35 years at a price that is more than twice current market rates. | The Hinkley Point reactor is also controversial in the UK as the UK government has agreed to buy electricity from the plant for 35 years at a price that is more than twice current market rates. |