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| EDF finally gives green light to Hinkley Point nuclear plant | EDF finally gives green light to Hinkley Point nuclear plant |
| (about 1 hour later) | |
| The board of the French energy giant EDF has finally given its approval to the Hinkley Point nuclear project. | The board of the French energy giant EDF has finally given its approval to the Hinkley Point nuclear project. |
| The board of the company - which is more than 80 per cent owned by the French state - voted in favour of proceeding with the UK's first new power station in twenty years. | The board of the company - which is more than 80 per cent owned by the French state - voted in favour of proceeding with the UK's first new power station in twenty years. |
| In a statement EDF said the first pouring of concrete at the two nuclear reactors on the Somerset coast will take place in mid-2019. | In a statement EDF said the first pouring of concrete at the two nuclear reactors on the Somerset coast will take place in mid-2019. |
| Sources said the vote had been carried by 10 votes to 7 on the board. | Sources said the vote had been carried by 10 votes to 7 on the board. |
| Six union representatives on the board as well as Laurence Parisot, the former head of the French employers' organisation, are said to have opposed going ahead. | Six union representatives on the board as well as Laurence Parisot, the former head of the French employers' organisation, are said to have opposed going ahead. |
| Earlier in the day, Gerard Magnin, who has a background in alternative energies, had resigned from the board saying that the £18bn project is too financially risky for EDF and will divert France away from investment in renewable energy. | Earlier in the day, Gerard Magnin, who has a background in alternative energies, had resigned from the board saying that the £18bn project is too financially risky for EDF and will divert France away from investment in renewable energy. |
| Despite today's green light the resignation of Magnin and the seven other votes against reflect growing doubts about Hinkley Point and the financial capacity for EDF to deliver the plant. | Despite today's green light the resignation of Magnin and the seven other votes against reflect growing doubts about Hinkley Point and the financial capacity for EDF to deliver the plant. |
| The firm's chief financial officer, Thomas Piquemal, 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 Pressurised 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 Pressurised 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, close to 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, close to 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. |
| 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. |
| Tony Ward, head of power and utilities at the accountacy firm EY said the EDF decision was a "major vote of confidence in the UK’s energy market, and in the vital role that new nuclear will play in delivering the UK’s low carbon aspirations." | Tony Ward, head of power and utilities at the accountacy firm EY said the EDF decision was a "major vote of confidence in the UK’s energy market, and in the vital role that new nuclear will play in delivering the UK’s low carbon aspirations." |
| “The project represents a significant milestone in the United Kingdom’s energy future. It will play a key role in further securing and decarbonising our energy supply, putting us on the right path to a sustainable energy mix" said the CBI's deputy Director-General Josh Hardie. | “The project represents a significant milestone in the United Kingdom’s energy future. It will play a key role in further securing and decarbonising our energy supply, putting us on the right path to a sustainable energy mix" said the CBI's deputy Director-General Josh Hardie. |
| But John Sauven, the executive director of Greenpeace, noted that the EDF board vote was closer than expected. | But John Sauven, the executive director of Greenpeace, noted that the EDF board vote was closer than expected. |
| “Today's decision doesn’t prove the UK is open for business post Brexit - it just shows the Hinkley deal became too big to fail in the eyes of British and French politicians” he said. | “Today's decision doesn’t prove the UK is open for business post Brexit - it just shows the Hinkley deal became too big to fail in the eyes of British and French politicians” he said. |