France’s EDF faces crunch vote on British nuclear plan

PARIS, July 28, (AFP): The board of energy giant EDF votes Thursday on a hugely controversial project to build a nuclear power station in Britain which critics say could bankrupt the French utility.

EDF’s directors are deeply divided over the planned construction of two nuclear reactors at Hinkley Point for £18 billion (21.4 billion euros, $23.8 billion), with the French government’s board representatives strongly in favour, unions strongly against and independent directors expected to tip the balance.

Adding to the tension, one board member resigned just before the key meeting, saying he disagreed with the plan.

In a letter seen by AFP, Gerard Magnin said he could no longer support France’s strategy to push nuclear energy at the expense of other options.

“As a board member backed by the shareholding government I no longer wish to support a strategy with which I disagree,” Magnin said in the letter.

The plan to build the EPR latest generation reactors, signed in 2013, is to be carried out by EDF with Chinese partner CGN, but has hit several snags since.

Weighing on its viability is the decision of French nuclear company Areva to drop out because of financial difficulties and the subsequent takeover of Areva’s obligations by EDF at the behest of the French government, which owns 85 percent of EDF.

This pushed EDF, which was already struggling under a debt mountain of 37.4 billion euros at the end of last year, to go further into the red, leading some to question the group’s ability to juggle all its liabilities, including the renovation of France’s nuclear operations and the takeover of Areva’s reactors amid falling energy prices.

Needing cash, EDF is in talks to sell just under half of its power unit RTE for over four billion euros, a source close the negotiations told AFP Thursday.

And earlier this week, the French government said it would foot three billion euros of a four-billion capital increase by EDF.