2nd Dec 2013

Hinkley Point C Commercial Terms Agreed

A comprehensive set of agreements have been reached between EDF Group and the UK Government including in principle the key commercial terms for an investment contract of the planned Hinkley Point C (HPC) nuclear power station.

The go-ahead has been given to construct two EPR reactors at HPC in Somerset and the agreement in principle, on the scope of the scheme and on the key terms of the investment contract , allows EDF Group to move ahead to secure partners for the financing of the project. The share of equity is expected to be split as follows: EDF Group 45-50%, China General Nuclear Corporation and China National Nuclear Corporation 30-40% and AREVA 10%. Discussions are taking place with a shortlist of other interested parties who could take up to 15% if required.

Preliminary works for the project are already well advanced, with a design approved by UK regulators, a nuclear site licence in place and planning permission being given for construction.

Subject to a final investment decision by July 2014, the power station is expected to complete commissioning of the first unit in 2023.

Key terms of the contracts for the four most important suppliers to the project have now been finalised subject to a final investment decision. These are with: Bouygues TP and Laing O’Rourke for the civil work contract, Costain for the marine work, Alstom for the turbines and Areva for Instrumentation and Control, Nuclear Steam Supply System and Fuel.

It is anticipated that 57% of the project’s construction value could be spent in the UK, building skills and expertise which will help the country win a greater share of nuclear programmes nationally and globally. However, new alliances between British and French industry will allow both to take a leading role in this project and nuclear projects around the world.

Redhall has strengthened its position to take advantage of the opportunities within the UK nuclear new build programme, by setting up strategic alliances with French companies ACPP and Baumert. The ACPP-Redhall joint venture primarily focuses on the design, manufacture and installation of the stainless-steel pond liners, tanks and sumps required. The commercial Heads of Terms agreement between Redhall and Baumert – a subsidiary of the French organisation Groupe Gorgé – will facilitate a turnkey package offering that includes design, manufacture and installation for shield and security doors used in nuclear power stations.

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