China has been forced out of the Sizewell C nuclear power venture in Suffolk following a £700m investment of taxpayer cash.
The government is spending an initial £679 to help get the long-awaited project going, and confirmed on Tuesday that part of this will go to state-owned China General Nuclear (CGN) under an exit deal.
Downing Street refused to say how much it cost to buy the CGN out, but a government spokesperson said the payment covered China’s “exit from the project, including buy-out costs (and) any tax due and commercial arrangements”.
Business Secretary Grant Shapps told the Commons: “I can confirm that China has now been bought out of the deal on Sizewell and the money ensured they are no longer involved in the future development.”
It means control will now be shared 50-50 between the UK government and the French energy giant EDF, who intend to build the plant.
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Mr Shapps visited the proposed site on Monday, just weeks after the Chancellor confirmed the government’s commitment to Sizewell during his Autumn Statement.
Funding for the project was signed off by Boris Johnson at the start of September in one of his last acts as prime minister.
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Sizewell C aims to generate enough low-carbon electricity to supply six million homes and help protect the UK from energy market volatility.
The government’s investment is for the early stage development of the plans, with the plant expected to take a decade to build at the cost of between £20-£30bn.
While Sizewell C has the backing of the Labour Party and unions, critics say it is too expensive and the new power source will take too long to come online.
Speaking to reporters at the site, Mr Shapps said he “queried” estimates that the costs could wrack up to as much as £30bn, as he was pressed on where the rest of the funding was coming from.
The cabinet minister said he was confident money could be raised to build it from private investors.
“We’re very confident actually, because we’ve been speaking to potential investors,” he said.
“We’ve got no concerns at all about people investing in Britain.”
Mr Shapps blamed rising global gas prices on Vladimir Putin’s “illegal march on Ukraine”.
“We need more clean, affordable power generated within our borders – British energy for British homes,” he said.
But the Stop Sizewell C campaign group claim the plant “can neither lower energy bills nor give the UK energy independence”.
“Despite the government’s paltry £700m, there is still a huge amount of money to find, and no one is prepared to come clean about what the ultimate cost will be,” they said.
‘New nuclear neither great nor British’
Greenpeace UK also criticised the project, saying the expected launch of Great British Nuclear to assist it “is clearly ironic as new nuclear is neither great nor British”.
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Boris Johnson gives green light to nuclear plant funding
“Projects have been plagued by massive delays and ballooning costs while the government is seeking to have Sizewell C – a French-designed and built reactor – funded by foreign investment funds,” said policy director Doug Parr.
He called for a move towards a “100% renewable system that would be cheaper than those based on nuclear or fossil fuels”.
“Why are ministers still obsessing about astronomically expensive, delay-plagued nuclear plants when we have much better options available?”
French-owned EDF Energy is already building two new nuclear reactors, known as Hinkley Point C, in Somerset – but the project has been beset by delays and rising costs.
There are mechanisms to protect the regime in events like this and the Revolutionary Guard, which was founded in 1979 precisely for that purpose, will be a major player in what comes next.
In the immediate term, vice-president Mohammed Mokhber will assume control and elections will be held within 50 days.
Mokhber isn’t as close to the supreme leader as Raisi was, and won’t enjoy his standing, but he has run much of Khamenei’s finances for years and is credited with helping Iran evade some of the many sanctions levied on it.
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Drone footage of helicopter crash site
Raisi’s successor will most likely be the chosen candidate of the supreme leader and certainly another ultra-conservative hardliner – a shift back to the moderates is highly unlikely.
Likewise, we shouldn’t expect any significant change in Iran’s foreign activities or involvement with the war in Gaza. It will be business as usual, as much as possible.
However, after years of anti-government demonstrations following the death of Mahsa Amini in 2022, this might be a moment for the protest movement to rise up and take to the streets again.
Iranian President Ebrahim Raisi has died after the helicopter he was travelling in crashed in a mountainous area of northwest Iran.
Rescuers found the burned remains of the aircraft on Monday morning after the president and his foreign minister had been missing for more than 12 hours.
“President Raisi, the foreign minister and all the passengers in the helicopter were killed in the crash,” a senior Iranian official told Reuters, asking not to be named.
Iran‘s Mehr news agency reported “all passengers of the helicopter carrying the Iranian president and foreign minister were martyred”.
State TV said images showed it had smashed into a mountain peak, although there was no official word on the cause of the crash.
“President Raisi’s helicopter was completely burned in the crash… unfortunately, all passengers are feared dead,” an official told Reuters.
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President of Iran killed in crash
As the sun rose, rescuers saw the wreckage from around 1.25 miles, the head of the Iranian Red Crescent Society, Pir Hossein Kolivand, told state media.
Iranian news agency IRNA said the president was flying in an American-made Bell 212 helicopter.
Mr Raisi, 63, who was seen as a frontrunner to succeed Ayatollah Ali Khamenei as Iran’s supreme leader, was travelling back from Azerbaijan where he had opened a dam with the country’s president.
Iran’s foreign minister, Hossein Amirabdollahian, also died in the crash.
The governor of East Azerbaijan province and other officials and bodyguards were also said to have been on board when the helicopter crashed in fog on Sunday.
Iranian media initially described it as a “hard landing”.
The chief of staff of Iran’s army had ordered all military resources and the Revolutionary Guard to be deployed in the search, which had been hampered by bad weather.
India’s Prime Minister Narendra Modi was among the first to react to the news of Mr Raisi’s death.
“India stands with Iran in this time of sorrow,” he said in a post on X.
A helicopter carrying Iran’s president crashed during bad weather on Sunday.
But who is Ebrahim Raisi – a leader who faces sanctions from the US and other nations over his involvement in the mass execution of prisoners in 1988.
The president, 63, who was travelling alongside the foreign minister and two other key Iranian figures when their helicopter crashed, had been travelling across the far northwest of Iran following a visit to Azerbaijan.
Mr Raisi is a hardliner and former head of the judiciary who some have suggested could one day replace Supreme Leader Ayatollah Ali Khamenei.
Because of his part in the sentencing of thousands of prisoners of conscience to death back in the 1980s, he was nicknamed the Butcher of Tehranas he sat on the so-called Death Panel, for which he was then sanctioned by the US.
Both a revered and a controversial figure, Mr Raisi supported the country’s security services as they cracked down on all dissent, including in the aftermath of the 2022 death of Mahsa Amini – the woman who died after she was arrested for allegedly not wearing her hijab properly – and the nationwide protests that followed.
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The months-long security crackdown killed more than 500 people and saw over 22,000 detained.
In March, a United Nations investigative panel found that Iranwas responsible for the “physical violence” that led to Ms Amini’s death after her arrest for not wearing a hijab, or headscarf, to the liking of authorities.
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The president also supported Iran’s unprecedented decision in April to launch a drone and missile attack on Israel amid its war with Hamas, the ruling militant group in Gaza responsible for the 7 October attacks which saw 1,200 people killed in southern Israel.
Involvement in mass executions
Mr Raisi is sanctioned by the US in part over his involvement in the mass execution of thousands of political prisoners in 1988 at the end of the bloody Iran-Iraq war.
Under the president, Iran now enriches uranium at nearly weapons-grade levels and hampers international inspections.
Iran has armed Russia in its war on Ukraineand has continued arming proxy groups in the Middle East, such as Yemen’s Houthi rebels and Lebanon’s Hezbollah.
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He successfully ran for the presidency back in August 2021 in a vote that got the lowest turnout in the Islamic Republic’s history as all of his potentially prominent opponents were barred from running under Iran’s vetting system.
A presidency run in 2017 saw him lose to Hassan Rouhani, the relatively moderate cleric who as president reached Tehran’s 2015 nuclear deal with world powers.
‘Very involved in anything’
Alistair Bunkall, Sky News’s Middle East correspondent, said the president is “a major figure in Iranian political and religious society” but “he’s not universally popular by any means” as his administration has seen a series of protests in the past few years against his and the government’s “hardline attitude”.
Mr Raisi is nonetheless “considered one of the two frontrunners to potentially take over” the Iranian regime when the current supreme leader dies, Bunkall said.
He added the president would have been “instrumental” in many of Iran’s activities in the region as he “would’ve been very involved in anything particularly what has been happening in Israel and the surrounding areas like Lebanon and Gaza and the Houthis over the last seven and a bit months”.