China may pull out of UK nuclear over project exclusion
Concerns have been raised over China's position in the UK's nuclear energy sector following news that a state-owned company could be forced out of future contracts to help Britain expand its nuclear energy portfolio.
Murmurs of China General Nuclear (CGN) abandoning the Hinkley Point C power plant in Somerset, England, have begun circulating since information surfaced about the British government looking to exclude the company from any future projects, marking a continued trend of Western governments and companies taking a stance against Chinese-backed firms over cybersecurity concerns.
Read more: Huawei ban may require UK to use different 5G operators
The FT recently broke the news the government were looking to remove the company from the £20 billion (€23.3 billion) consortium charged with delivering the Sizewell B power plant in Suffolk.
The CGN was also penned in to construct a power plant in Essex. The company is currently listed as a minority shareholder in Hinkley Point C, which is currently being run by French energy firm EDF.
The Chinese firm is currently awaiting approval for its reactor in Essex, located near Bradwell-on-Sea.
However, key industry leaders have warned that a Chinese-backed plant within such a short distance from London could cause concerns.
China has seen itself increasingly excluded from several business ventures in the UK and other nations owing to cybersecurity concerns - particularly regarding the integration of new 5G technologies.
This was spurred by former US President Donald Trump, who was concerned over the Chinese government's ability to request data from private companies, reportedly under the 2016 Cybersecurity Law.
The piece of legislature makes it a legal requirement for Chinese companies to store data in China and to surrender information to law enforcement authorities when requested.
As such, Chinese companies such as Huawei found much of their infrastructure removed from projects as well as bans being instituted in several countries, including Bulgaria, Sweden and Germany.
Swedish telecoms provider Ericsson has warned its native country of potential repercussions for removing Huawei from its networks such as a significant loss of revenue.
There could also be some repercussions for the future of UK nuclear projects.
One nuclear executive told the FT the CGN's removal from further projects could cause the company ro reassess its position on Hinkley Point C.
They pointed out multilateral agreements between CGN, EDF and the government dating back to 2015.
He added: “Neither EDF nor the government can assume they can just deal with Sizewell in isolation. If you open one agreement then you potentially open all four. Legally, you open one part of the agreement, you run the risk of opening all parts of the agreement.”
However, reports are circulating the Chinese company is keen to receive approval for its UK reactor, so it can remain competitive in international markets.
There is also the matter of logistics regarding nuclear power.
A spokesperson from the UK's Nuclear Industry Association told The Guardian most current reactors would be decommissioned by 2030.
He said: "It is vital that the UK invests in new reactors – both large and small modular designs – to help meet our climate targets and create good jobs across the country”.
Nuclear power plants take several years and are expensive to build. Sizewell C, for example, is expected to take roughly 12 to build, which has spurred criticism from environmental activists as the funding for the project nears completion.
Read more: UK firms pledge £4.4bn boost for East of England over Sizewell C
Despite this, nuclear energy remains the only viable way to ensure the volumes of energy needed in the transition can be met.
The NIA spokesman added: “Achieving net-zero by 2050 will require four times as much zero-carbon power as we have today – that means more nuclear, more wind and more solar."
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