General Electric Co. announced a $1.9 billion deal Friday morning to equip a new nuclear power plant in the United Kindgom with steam turbines and other power plant equipment.
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CEO Duncan Hawthorne said Thursday that new nuclear is “vital” for the UK’s energy mix and the announcement on the first new nuclear power plant to be built in decades in the country is “good news”. Nuclear energy provides CO2-free energy and when it is completed Hinkley is expected to deliver around 7% of the United Kingdom power generation.
Alstom won the competition a few years ago, GE said.
The Hinkley Point power station is a part of a push by the United Kingdom government to provide cleaner energy.
The UK government continues to push for low carbon energy technologies, and the government’s new agreement with GE could help it accomplish its long-term energy conservation goals. Ever since 2010, United Kingdom managed to reduce its electricity generation capacity by 20% in order to minimize carbon emissions. When complete, Hinkley Point C is expected deliver around 7% of the UK’s power generation capacity for 60 years.
Andreas Lusch, President and CEO of GEs Steam Power Systems said, Producing power that meets todays greenhouse gas emission standards is a top priority. Each turbine will generate 1,770 megawatts, giving the plant almost twice the output of the Indian Point nuclear power plant down in Westchester County.
And what about the flurry of reports criticising the Hinkley Point project over costs and security worries? With todays decision, GE continues to move forward with the next phase of design, engineering and manufacturing from GEs Steam Power Systems Global Center of Excellence in Belfort, France. GE is organized around a global exchange of knowledge, the “GE Store”, through which each business shares and accesses the same technology, markets, structure and intellect.
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Overall, 2 research analysts have rated the stock with a Sell rating, 4 research analysts have assigned a Hold rating and 6 research analysts have given a Buy rating to the stock.
