Chancellor George Osborne has announced that the UK will ensure a £2bn deal under which China will spend money on the Hinkley Point nuclear power place. Mr Osborne, who is in China, said the offer would pave the way for a final investment decision on the delayed task by French energy company EDF. He said it would also enable greater collaboration between China and Britain on the construction of nuclear plants.
EDF welcomed the news but didn’t say if it put the project back on track. This month Earlier, EDF admitted the Hinkley project in Somerset, that was intended to permit the plant to generate power by 2023, would be delayed. In February, the French company announced that it had pushed back its decision on whether to purchase the place.
The £24.5bn power place would be Britain’s first new nuclear power flower for 20 years and is expected to provide power for about 60 years. He announced a fresh £50m joint research center for nuclear energy also. What’s most striking about George Osborne’s Chinese tour is he is doubling his political and economic bet on the world’s number two economy at a time when that economy is looking its most fragile for 30 years. This is really long-term strategic planning for more power security by Osborne and the government (well, they might say).
50 a barrel, Hinckley’s potential electricity looks scarily expensive. And there is a paradox about how expensive the nuclear megawatts look right now – because one of the big factors behind the essential oil price collapse is the Chinese slowdown that has savaged the demand for energy. Mr Osborne said Chinese companies would receive a significant stake in the task, with the united kingdom government acting as guarantor for the investment. The assurance will be provided by the government’s Infrastructure UK Scheme, which provides fund for projects that have had difficulties raising money from private investors.
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Energy Secretary Amber Rudd told the BBC that nuclear power performed in important part in Britain’s energy security. EDF, that may continue steadily to control the endeavor, has decided to provide electricity from Hinkley at a guaranteed least price of £89.50 per MW hour for 35 years. Ms Rudd declined criticisms that was expensive too, stating nuclear power was “affordable” weighed against other low-carbon resources of power.
She also told the Financial Times, she needed Beijing to take the lead in developing new nuclear plants in Britain. She said China was likely to lead the building of the Beijing-designed nuclear train station at Bradwell in Essex. Vincent de Rivaz, chief executive of EDF Energy, said the chancellor’s announcement was “further improvement towards your final investment decision” on the plant.
In addition, hidden investments in Britain have been recently uncovered. The Heritage dataset identifies only five large transactions valued at USD 6 billion in the United Kingdom, led by policy lender China Development Bank. However, local media in September uncovered small stakes accumulated by SAFE in more than 50 British companies. The full, total value of SAFE’s stakes was calculated at more than USD 16 billion.
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