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Nuclear Supply Chain Newsletter Nuclear Supply Chain Newsletter December 2010 It is now three months since the MAS ‘Nuclear supply chain opportunities for SMEs’ event, held in Manchester on the 27 September 2010, and things within the civil nuclear industry are moving forward and gathering pace. The purpose of this newsletter is to consolidate recent stories and announcements, as well as provide additional information on how to get involved with the nuclear supply chain. Inside... Partners • Update on Nuclear New Build in the UK • News from AREVA • Statement on Energy Policy • The Nuclear Advanced Manufacturing Research Centre • Guidance from the Nuclear Industry Association • September 2010 Conference round up: ‘Nuclear supply chain opportunities for SMEs’ • The Nuclear Opportunity - Frequently Asked Questions • MAS Regional Update Commissioned by For information and advice visit www.mas.bis.gov.uk or call 0845 658 9600 Nuclear New Build in the UK SMEs have concerns that their efforts to enter nuclear new build On the 29 November 2010 a third utilities consortium was launched (NNB) markets could be wasted if such markets fail to materialise as NuGeneration Ltd (NuGen), a joint venture between GDF because of project implementation delays and cancellations. Suez, Iberdrola and Scottish & Southern Energy (SSE). Consequently, MAS will endeavour to advise SMEs of the current NuGen hopes to develop a new generation nuclear power station national position. of up to 3.6GW on a site near Sellafield in West Cumbria, for Currently there are three consortia who have expressed wishes to which it secured an option in October 2009. Construction and build new nuclear power plants in the UK. These are: commissioning is expected to start mid-2016. EDF Energy, with their investment partner, Centrica, propose to NuGen is a strong partnership with extensive experience of operating construct two European Pressurised Water Reactor (EPR) units: the nuclear power stations across Europe, as well as developing and first at Hinkley in Somerset and the second at Sizewell in Suffolk. operating thermal and renewable power stations in the UK. A new The total generation capacity is 6.6GW. management team for NuGen has been drawn from all three of the consortium partners. This team will be headed by Alfio Vidal and The Hinkley Point programme highlights are: Olivier Carret as the Executive Directors of NuGeneration Ltd. • Public consultation is now underway To understand more about NuGen please visit their website, which • Planning application for Hinkley site projected to be submitted shows timescales and site plans: in 2011 www.nugeneration.com • Tier 1 contracts will be placed in 2011 The Nuclear Industry Association (NIA) welcomed NuGen as its • First EPR concrete in 2013 250th member as it launched itself onto the UK nuclear scene. The milestone is seen as another major step for the nuclear industry and • Reactor on-line and first power in 2018 a further boost to the future of nuclear new build in the UK. • Completion of second Hinkley reactor 18 months later http://newnuclearopportunities.edfenergy.com [Note: EDF is planning to build a further EPR unit at Penly in northern France in the same timescale as the first Hinkley unit. This will impact the UK supply market] Horizon Nuclear Power is a 50/50 joint venture formed by E.ON and RWE. They plan a total generation capacity of around 6GW by 2025 at Wylfa (Isle of Anglesey) and at Oldbury (Gloucestershire). Horizon plans to build two to three units at each site. Horizon is currently evaluating both the AREVA EPR design and the Westinghouse AP1000 design and is expected to make a technology choice in 2011. The Wylfa programme highlights are: • Public consultation is now underway • Planning applications for Wylfa site scheduled for 2012 • Final investment decision for Wylfa site anticipated 2013 • First nuclear concrete in 2015 • First power late 2019-2020 www.horizonnuclearpower.com The EPR reactor under construction, Olkiluoto, Finland. October 2010 © AREVA / BOURDON PAIVI 2 GDA remains on target News from AREVA In order for a nuclear reactor to be commissioned in the UK the AREVA, manufacturer of nuclear power stations, is looking to UK UK Regulator needs to approve its design and give it permission to suppliers for the construction of new nuclear reactors both in Britain operate. To ensure swift UK civil nuclear build the UK is approving and overseas. two reactor designs through the Generic Design Assessment AREVA will construct the Nuclear Steam Supply System (NSSS) (GDA) - this means once approved the designs will be locked and for the four EPR reactors planned by EDF at Hinkley Point and acceptable for utility companies to use in the UK without having to Sizewell and is competing for the contract to build reactors for seek re-assessment. Horizon Nuclear Power as well. The Nuclear Instillations Inspectorate in the Health and Safety Over an intensive year-long process including a suppliers’ day, a Executive (HSE) is conducting the GDA process for both the EPR dedicated website and a programme of plant visits, AREVA has now and the AP1000. identified more than sixty British companies as potential suppliers of The HSE placed a Regulatory Issue (RI) relating to the EPR design engineering equipment and services for both its UK and worldwide in April 2009. An RI is raised when the HSE judges that a particular newCourtesy build of programme. EDF Energy: ItHinkley is working Point withC – them to make sure they feature of a design might not meet UK regulatory standards. The arewww.edfconsultation.info suitably prepared to bid for forthcoming contracts. HSE expressed concerns about the design of the EPR’s control and Jean-Jacques Gautrot, President of AREVA UK, says “Britain instrumentation. The UK regulator has now said that it is satisfied is leading the way in Europe in its vision of a new generation of with efforts made by AREVA and EDF to address these concerns. nuclear reactors and we are committed to making sure that it is the This now becomes a Regulatory Observation (RO) within the GDA foundation of a revived nuclear supply industry in the UK.” process. The dedicated website for potential suppliers is: The reactor design for the Westinghouse AP1000 is the subject of http://suppliers.areva.com/UK_supply_chain_EPR an HSE RI (February 2010) concerning the civil engineering design methodology. The HSE has requested appropriate evidence to demonstrate the strength and durability of key structures within “the Nuclear Island”. Regular discussions have continued on this topic with a view to agreeing the principal design changes, though Westinghouse believe this can be easily resolved and will not cause a delay. The HSE has said that it is confident that in the next six to eighteen months these RO actions can be closed. A meaningful GDA Step 4 conclusion in June 2011 should not be threatened. This is encouraging news for those SMEs following nuclear new build progress as delays linked to this are not foreseen or predicted. Courtesy of EDF Energy: Hinkley Point C Statement on Energy Policy On the 18 October 2010 the Secretary of State for Energy and • The laying in draft of the Nuclear Decommissioning and Waste Climate Change, the Rt Hon Chris Huhne MP, made a number of Handling (Designated Technical Matters) Order 2010, which announcements which demonstrate the Government’s continued if approved, will be followed by the publication of the draft commitment to remove unnecessary barriers to nuclear new build Decommissioning and Waste Handling (Finance and Fees) in the UK. Regulations, which set out in more detail what will be required from new nuclear developers in terms of decommissioning and The day saw the launch of the consultation on the revised draft clean-up National Policy Statements (NPSs) on Energy which will provide the framework for deciding whether to grant development consent • Clarification of the Government’s policy of no subsidy for new for new nationally significant energy infrastructure projects such as nuclear power in a written ministerial statement to the House nuclear power stations. which states that “this means that there will be no levy, direct payment or market support for electricity supplied or capacity The draft Nuclear NPS lists eight sites as potentially suitable for new provided by a private sector new nuclear operator, unless nuclear power stations: Bradwell, Hartlepool, Heysham, Hinkley similar support is also made available more widely to other Point, Oldbury, Sizewell, Sellafield and Wylfa. types of generation” The consultation runs until the 24 January 2011. More information The full written ministerial statement which provides greater detail on how to respond and documents related to the consultation can on this and other issues is available from: be found at: www.decc.gov.uk/en/content/cms/news/en_statement/ www.energynpsconsultation.decc.gov.uk en_statement.aspx In addition to the consultation on the revised draft Energy NPSs UPDATE: Since this announcement the Regulatory Justification (including the draft Nuclear NPS) the Secretary of State has also decisions on the AP1000 and EPR reactor designs came into announced other actions. These are: effect on 30 November following parliamentary votes. The large • The laying in draft of statutory instruments containing majorities in the Commons are evidence of cross-party support for proposed Regulatory Justification decisions in respect of two new nuclear as part of low-carbon energy mix. The first facilitative new nuclear reactor designs - Westinghouse’s AP1000 and action under 2008 White Paper is now completed. AREVA’s EPR 3 Nuclear Manufacturing Renaissance The Nuclear Advanced Manufacturing Research Centre (Nuclear • Meet and exceed quality standards and achieve nuclear- AMRC), a joint initiative between the University of Sheffield, the specific accreditation University of Manchester and a consortium of industry partners will What does this mean for SMEs who are interested in act as a focal point for the renaissance of nuclear manufacturing diversifying into the nuclear supply chain? in the UK.
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