Hong Kong, China (PressExposure) October 22, 2013 -- HK Equity Fund: Evidence of a thaw in attitudes towards nuclear power generation took a quantum leap after the United Kingdom confirmed that it has given the all clear to the construction of new nuclear reactors at Hinkley in the South-Western county of Somerset at a cost of Ã‚Â£16 billion ($25bn).
French-owned energy giant, EDF and two minority-stake Chinese partners will build the plant which will begin generating power by 2023. Britain has not built a new power plant since 1995 when its Sizewell B plant power station came online in Suffolk
An HK Equity Fund energy analyst said, "We've been telling our clients that nuclear energy stocks have exciting upside potential despite what, on the surface, appears to be deep-rooted opposition to the proliferation of nuclear power generation in the aftermath of the Fukushima, Japan disaster. It's far cleaner power than coal, oil and gas even with the minor risks."
The new reactors will operate for 35 years and will be capable of producing 7% of the UK's power requirements or 7 million homes but the UK government has come in for criticism over the price per megawatt/hour they have agreed with the EDF-led consortium. Under the terms of the deal, the government will pay Ã‚Â£92.50 and skeptics cite the flow of money to the French taxpayer and the Chinese government.
"It would be nice if those critics focused on the 25,000 jobs the project will create rather than on who gets paid for actually building the reactors," concluded the HK Equity Fund analyst.
HK Equity Fund established a presence in Hong Kong in 1995. Today their Hong Kong office is their main hub in the Asia-Pacific region. All of HK Equity Fund's business groups have operations in the city, making this their largest office in the region outside Australia. From Hong Kong they offer corporate finance and advisory, institutional cash equities and research, equity derivatives and structured products, debt financing and funds management, and environmental financial products, futures, metals OTC hedging and fixed income trading services.