Chinese shareholder could lose its stake in Sizewell C plant
The UK is planning to force China General Nuclear (CGN) group to relinquish its 20% stake in the Sizewell C nuclear power plant in Suffolk, England.
Ministers, who have been discussing the matter for a number of days, expect to sell the stake in the £20 billion plant to other investors as it comes close to cementing the deal.
Rumours have been circulating since July over a Chinese players position in the UK's nuclear energy market as a number of Western players look to exclude China-backed companies over security concerns and rising geopolitical tensions.
Read more: China may pull out of UK nuclear over project exclusion
The news, which was originally broken by the Guardian, suggested the UK government could take a stake in the power plant, which it would then co-own alongside France's EDF Energy, which owns an 80% stake.
Under the agreement, EDF will be looking to operate a finance model known as a "regulated asset base" in order to fund and build the 3.2GW plant, meaning taxpayers will start paying towards the plant long before it starts generating power.
CGN's involvement has been under scrutiny since Huawei's exclusion from UK 5G mobile services following a string of cybersecurity concerns from the US and other allies.
Washington has since been leaning on the British government to blacklist the Chinese stakeholder and remove it from its nuclear energy market.
Concerns have also been raised over CGN stealing military technology - a claim it vehemently denies.
Removing the stakeholder would cause the government to renege on its 2015 agreement with the company, which not only secured funding for both the Sizewell and Hinkley complexes, but also involved the installing of reactors pioneered by CGN at Bradwell B in Essex.
The government is hoping to be able to confirm a number of details - including CGN's role or whoever will be taking on its minority stake as well as its financing model - before the COP26 summit in November.
The Financial Times has reported talks are currently ongoing with EDF regarding the future of the Sizewell C plant. It is likely CGN's funding for Hinkley Point C will also be up for grabs.
Reaction to a new Sizewell plant has been mixed.
In March, a consortium of over 200 construction and nuclear firms pledged £4.4 billion in funding for the East of England, with £2 billion being set aside for the county of Suffolk alone, over hope the power plant could ignite investment interest in the region.
Read more: UK firms pledge £4.4bn boost for East of England over Sizewell C
The consortium hinted 73,000 jobs could be created in the region should Sizewell C be given the go-ahead.
Other projects that could be supported by the scheme include a green hydrogen hub in Harwich and a bolstering of the UK's nuclear supply chains with an overhaul to the Port of Felixtowe.
However, environmental activists have slammed the project over what they perceive as nuclear energy's slow uptake when the issue of climate change should be tackled by projects that should be handled quickly as well as issues concerned with the disposing of nuclear waste.
Some also believe the plant could have a negative impact on local fishing ecosystems.
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