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Sun Oct 20, 2013 4:36pm BST
By Karolin Schaps and Geert De Clercq
LONDON/PARIS (Reuters) - Britain is set to sign a deal with
France's EDF for the first nuclear plant to start
construction in Europe since Japan's Fukushima disaster raised safety concerns worldwide, at a cost estimated at around $23 billion.
Under
the deal, to be announced on Monday, the French state-controlled
utility will lead a consortium, including a Chinese group, to construct
two European Pressurised Water Reactors (EPRs) designed by France's
Areva.
Industry estimates, based on other nuclear projects, put the cost at around 14 billion pounds or more than 16 billion euros.
EDF's long-time partner
China General
Nuclear Power
Group (CGN), possibly in combination with China National Nuclear
Corporation (CNNC), is expected to have a 30 to 40 percent stake in the
consortium, with Areva taking another 10 percent, according to
newspapers including France's Les Echos and Britain's Sunday Telegraph.
The
two reactors, each with a capacity of 1.6 gigawatts, would together
make up nearly five percent of British generating capacity and increase
energy security in the country, which needs to replace 20 percent of its
ageing and polluting power plants over the coming decade.
EDF and the British prime minister's office declined to comment on the media reports, but EDF said in a statement on Sunday its
CEO
Henri Proglio would give details about the UK nuclear project in a web conference Monday morning.
The project is a boost for the global nuclear industry, which has seen projects cancelled since the 2011 Fukushima disaster.
Germany decided to phase out
nuclear power,
Italy scrapped a planned nuclear programme and
France has pledged to cut atomic power to 50 percent of its electricity mix from 75 percent today.
Britain's
government and main opposition parties support nuclear power and
anti-nuclear sentiment among the population is muted by comparison with
other parts of Europe.
George
Borovas, nuclear specialist at law firm Pillsbury, said Britain is a
unique environment for nuclear, given political support, a relatively
strong
economy and an existing nuclear fleet.
"If nuclear can't work in the UK, where else?" he said.
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