News ISSUE 13
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NuclearAMRC Q4 2013 news ISSUE 13 Tools for the new generation World-leading manufacturing for Hinkley Point and beyond EDF milestone Sharing in Growth Nnuman research EUROPEAN UNION Bloodhound SSC Investing in Your Future European Regional Triple Bar training Development Fund 2007-13 ALSO IN THIS ISSUE SME open house EDF agreement ‘a significant milestone’ for new build First of a new generation: the proposed new reactors at Hinkley Point EDF Energy and the UK government have agreed linked to the consumer price index. If EDF confirms Vincent de Rivaz, EDF Energy chief executive, commercial terms for EDF’s proposed Hinkley that it will also build new capacity at Sizewell, said: “The project will kick start the UK nuclear Point C power station, a vital step towards a new that price is reduced to £89.50/MWh to reflect programme and will help rebuild the nation’s generation of nuclear power stations in the UK. economies of scale. industrial stamina. The progress so far on the project reflects the great skill and determination of a world The long-awaited deal sets the financial structure for The Department of Energy and Climate Change class team which is ready to get to work and turn the long-term supply of low-carbon electricity from (DECC) forecasts that electricity from Hinkley Point Hinkley Point C into a reality.” new reactors at Hinkley Point. EDF still has to make a C will be competitive with future gas generation final investment decision on the project. prices. The contract will last for 35 years from The agreement was welcomed by the other UK new the date of commissioning, and will give EDF an build groups. “This is a significant milestone in the development of estimated rate of return of around 10 per cent. new nuclear power stations in the UK,” commented “This is important in sustaining momentum behind Mike Tynan, chief executive of the Nuclear AMRC. EDF also announced details of the investment the UK nuclear programme,” said Alan Raymant, “Utilities, developers and investors need confidence consortium for Hinkley Point C. EDF Group will chief operating officer for Horizon Nuclear Power. in both long-term cost and revenue profiles for retain 45-50 per cent of the venture, with reactor “We’re some way from our own price negotiations making a final investment decision, and I’m sure that provider Areva taking 10 per cent. Following the with government, but when we get to that stage this announcement will be welcomed by everyone government’s go-ahead for Chinese investment in we are confident we’ll reach a deal that’s fair for bill involved in UK new nuclear build. UK nuclear generation (see box), China General payers and works for investors.” Nuclear Corporation and China National Nuclear “The Nuclear AMRC looks forward to the Hinkley “This is an extremely important and symbolic Corporation will take a total 30-40 per cent stake. Point scheme moving forward with EDF Energy, and milestone in the journey to delivering new nuclear Other interested parties may take up to 15 per cent is already working closely with EDF and Areva to power stations for the UK,” said Robert Zadora, of the venture. develop the UK supply chain.” executive director of NuGen. “It shows progress and The consortium will invest around £16 billion in commitment, and gives potential investors in UK new Both Areva and EDF are using the Nuclear AMRC’s two EPRs at Hinkley Point, including £14 billion nuclear more clarity, and a welcomed boost.” Fit For Nuclear programme to identify potential in construction costs. Around 57 per cent of the suppliers of manufactured components. Fit For • Fit For Nuclear: namrc.co.uk/work-with-us/f4n construction value could be spent in the UK, Nuclear lets companies measure their operations EDF says. • UK new build plans: against the standards required to supply the nuclear namrc.co.uk/intelligence/uk-new-build-plans industry, and take the necessary steps to improve EDF confirmed that it has finalised terms with the their readiness. four top-tier suppliers to the project: Bouygues TP/Laing O’Rourke for civil works; Costain for The new deal guarantees a price for electricity from marine work; Alstom for turbines; and Areva for Hinkley Point C under the contract for difference instrumentation and controls, the nuclear steam mechanism, which also applies to windfarms and supply system and fuel. other low-carbon sources. The price is £92.50/MWh, Shovel-ready: preparing the ground for Hinkley Point C Nuclear AMRC news Q4 2013 2 Tynan Tynan The The price View of nuclear renaissance Much of the reaction to the agreement between EDF Energy and the UK So, EDF will move forward to a final investment decision at Hinkley Point. government focused on the headline price that will be paid over the next 35 Of the other new build groups, Horizon Nuclear Power needs Hitachi to years – £92.50 per MWh, around twice the current wholesale price. How is take its Advanced Boiling Water Reactor (ABWR) through the generic design such a price justified? assessment process, which could take four years. And NuGen will need to decide on which technology it will deploy at Moorside, Sellafield, before it can Proponents will claim that increasing demand for low-carbon electricity has even apply for planning permission. to be met by a significant baseload generation technology, and that nuclear power is the obvious choice. High capital costs are offset by significantly lower All of this means that we will not see a new nuclear power station generating costs for operation through the 60-year life of the stations – however the electricity in the UK until sometime in the 2020s. And who will actually investment risk has to be paid for, and this is reflected in the price needed to construct these stations? Commitments are being made by the developers attract that investment. to support UK manufacturers, but to what extent? Where will the high value components and fabrications be made? Opponents will say that uncertainties over ultimate waste disposal from the stations and decommissioning costs add an unacceptable cost burden to the New nuclear reactor technology for the UK is likely to be French, American or consumer and that greater emphasis should be placed on other forms of Japanese, so many people are questioning how much of these big infrastructure renewable energy. schemes will truly be “Made in Britain”. Our mission at the Nuclear AMRC is to maximise the involvement of UK manufacturers. We will do this through Ultimately, the domestic, industrial and commercial sectors of our economy two major programmes: the civil nuclear Sharing in Growth programme that demand electricity at the press of a button, irrespective of whether the sun is now helping UK manufacturers increase their competence, capability and shines or the wind blows. Given that over 40 per cent of the UK electricity cost effectiveness to secure lucrative contracts at home and abroad; and our generating capacity is currently met by coal-fired power stations, we will innovative industry-led advanced manufacturing R&D programme. need to take tough decisions if we want to move to a low-carbon economy, stabilise electricity prices and secure our own supply of energy With the UK new build programme passing a major milestone, we are for the UK. looking forward to playing an exciting role in a new era of civil nuclear power for the UK. Go-ahead for China investment The UK government has confirmed that Chinese companies can invest in the involvement of participating Chinese companies, and will work to develop nuclear power generation in Britain. relationships and interest in areas of manufacturing and business support which will lead to new opportunities for the UK.” Chancellor George Osborne announced that Chinese companies can take a stake – including potential majority stakes – in UK nuclear new build consortia The announcement follows the signing of a memorandum of understanding while visiting Taishan nuclear power station, a collaboration between EDF and on civil nuclear collaboration between the UK and China. The memorandum the China General Nuclear Power Company. sets the strategic framework for collaboration on investment, technology, construction and expertise. “This is a significant and welcome investment announcement for the UK’s nuclear new build programme and supporting supply chain, which could As well as supporting Chinese investment in the UK, the agreement will make lead to real export potential for UK manufacturers into China’s internal, sure that British companies such as Rolls-Royce, International Nuclear Services fast-growing, multi-billion pound nuclear new build market,” commented and engineering companies such as Mott MacDonald can be part of China’s Martin Ride, supply chain consultant at the Nuclear AMRC. “We welcome multi-billion pound new nuclear programme. 3 namrc.co.uk Nnuman marks first year of next-generation Laser welding: new ways to join high performance alloys for nuclear components research Welding New 16kW laser robotic welding facilities have now been commissioned at The University of Manchester’s Manufacturing Technology Research Laboratory. Initial research will focus on thick- section narrow groove welding for SA508 Grade 3 Class 1 steel, a high-performance ferritic steel used in nuclear pressure vessels. Fuels Two trailblazer projects are underway to develop new materials for nuclear fuel pellets and cladding. The University of Manchester is working with Mittweida University in Germany on novel brazing techniques for silicon carbide composites. This material could significantly improve the performance Collaboration for the next generation: of light water reactor fuel cladding, especially in case Nnuman team members of accidents, but problems in joining the material have limited its use.