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With the Liberal-Democrat side of the coalition government now supporting nuclear new-build and a softening of the anti-nuclear stance among the party’s grassroots, the political brakes holding back the industry may have been slackened.
Meanwhile, Areva and Westinghouse continue to compete for the first contracts from the utilities that will run the new nuclear plants. Horizon Nuclear Power, a consortium formed by German utilities RWE and E.On, wants to build a nuclear power station at Wylfa, Anglesey and is assessing the pros and cons of Areva’s 1,600MW next-generation EPR design and Westinghouse’s 1,000MW reactor. It is expected to plump for one in January or February.
But Areva’s chances of landing the Horizon deal could be scuppered by its performance in projects elsewhere. Three EPRs are under construction, in France, Finland and China. Construction of the Olkiluoto 3 reactor in Finland has been beset by delays and cost problems, and the French firm has a rancorous relationship with Finnish utility TVO.
Horizon is said to be monitoring the situation and, some suggest, could be deterred from choosing Areva because of the Finnish project’s troubles. Industry observers claim that if Areva is contracted to build the EPR at other sites in Britain as well as at Wylfa, it might not have enough capacity in its supply chain to cope.
Whatever the decision, British engineering firms must prepare themselves for new-build. US firm Westinghouse wants to award about 70% of the value of building AP1000s in the UK to them but it could look further afield.
Westinghouse had offered millions of pounds to Sheffield Forgemasters to help it purchase a giant press for forging the largest nuclear components. This would have significantly developed the supply chain at home. The axing of an £80 million loan to Forgemasters in the first wave of spending cuts by the government has seen the project put on ice but Westinghouse says the money is still available if the Sheffield company manages to secure other investment.
Westinghouse’s new-build plans are not affected by the Forgemasters loan decision, it says.