Company executives said the British government might have to take over the £6 billion stake of the China General Nuclear Power Corporation (CGN) to avoid a “disaster”, according to reports in the Financial Times.
“If the Chinese pull out, there is no way that EDF will be able to pay for the rest itself. We would need the British or someone else to step in,” one unnamed source was quoted as saying.
It would be a “disaster” for the project if the Chinese withdrew, said another, but EDF would “wait and see” what played out before assuming the project was over.
However, EDF said in a tweeted statement: “EDF strongly denies the quote attributed to us by the Financial Times.
“We are confident and wait patiently for the government decision.”
This decision is likely to be a key topic for discussion when prime minister Theresa May meets Chinese president Xi Jinping later today, following the conclusion of the G20 summit at Hangzhou in China.
Yesterday May was asked at a press conference in Hangzhou whether the government’s review would involve asking the National Security Council (NSC) to examine Hinkley. She responded: “I will be doing exactly as you’ve said, indeed, in your question… which is, as you know, I’ll be looking at all the evidence around this issue.
She continued: “The way I work, I don’t just take an instant decision.
“I look at the evidence take the advice consider it properly and then come to a decision. I’ve been very clear that I will be doing that and probably taking a decision sometime this month.”
Later on a source made clear the NSC would not be involved in the review, the Independent reported.
EDF gave the go-ahead to the Hinkley at the end of July following years of delays. Within hours the British government said it would postpone its final decision until the autumn whilst it undertook a review of the project.
The following month the Chinese ambassador to the UK said the relationship between the two countries was a “crucial historical juncture”, and that the decision would be seen a test of trust.
Later in August the Energy and Climate Intelligence Unit released a report suggesting the project could be replaced and the alternatives “work out cheaper”.