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EDF, Britain sign $26 billion deal for nuclear plant

Hinkley Point Nuclear Power Station
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Hinkley Point Nuclear Power Station

French utility EDF and the British government have signed an agreement to build two nuclear reactors for a total cost of 16 billion pounds ($25.9 billion), EDF said in a statement on Monday.

EDF said it would have a 45 to 50 percent stake in the consortium to build two Areva-designed EPR reactors at Hinkley Point C in Somerset, southwest England.

China General Nuclear Corporation (CGN) and China National Nuclear Corporation (CNNC) will have a combined stake of 30 to 40 percent while Areva will take a 10 percent stake.

Discussions are also taking place with a shortlist of other interested parties which could take up to 15 percent, EDF said.

The contract will last for 35 years from the date of commissioning, with an electricity price set at 92.5 pounds per megawatthour, or 89.5 pounds if a second nuclear plant project at Sizewell goes ahead.

"This marks the next generation of nuclear power in Britain," Prime Minister David Cameron was quoted as saying in the statement.