Industry Link - June 2013

The UK Supply Chain: EDF Energy estimates that 57% of the value of the construction can be realised in the UK / Horizon estimates that 60% of the value of the first generating unit will be spent on UK-sourced materials, personnel and services, The UK must grasp this significant opportunity

Magazine of the UK nuclear industry association summer / 2013

NIA.ORG

Knowing Your State Aids

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meet Richie: The Friendly face of nuclear

Horizon Plans Progress hunterston powering on

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Welcome to IndustryLink

SNAPSHOT

Alastair Evans Alastair.Evans@niauk.org

Working to Treat Organic Wastes PAGE 21

VISIT NIAUK.ORG

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IN VIEW

2000 Tons of metal successfully recycled FEATURE

This magazine is printed on 100% post-consumer recycled paper, using vegetable based inks.

The Nuclear Industry Association (NIA) is the trade association and representative voice of the UK’s civil nuclear industry. We represent 63,000 UK nuclear workers across more than 260 member companies.

Nuclear Industry Association is a company limited by guarantee registered in England No. 2804518 Registered Office Carlton House 22A St James’s Square London SW1Y 4JH TEL +44(0)20 7766 6640 FAX +44(0)20 7839 1523 EMAIL info@niauk.org Contributors Alastair Evans, Dan Powney, Peter Haslam, Keith Parker, Rupert Lewis, Hannah Randle, Kirsty Alexander, Val Poyser – EDF Energy, Tristram Denton – Horizon Nuclear Power, John McNamara – NuGeneration Ltd, Brooke Charlesworth – URENCO, with additional thanks to World Nuclear News Design and Creative Direction thomasmatthews.com

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Press Enquiries Kirsty.Alexander@niauk.org TEL 07952 545 355 Alastair.Evans@niauk.org 07894 595 718

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Hannah.Randle@niauk.org 07894 595 717

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Follow us: @NIAUK “ I am extremely proud to be joining the team at the University of Sheffield and the Nuclear AMRC.”

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Cover image: Welding Apprentice at Nuclear AMRC © Nuclear Advanced Manufacturing Research Centre — http://namrc.co.uk

Summer 2013 and we are seeing some significant progress in the nuclear industry. According to press reports EDF Energy and the government are nearing a conclusion to their negotiations, Horizon has announced its timeline for work at Wylfa, and NuGen are preparing to begin Phase II of site assessment.

Decommissioning continues at a pace with developments across all sites, and contracts being delivered on time, (or earlier!), and to cost.

Life Extensions for the plants currently generating have become increasingly important this year, particularly with regard to our continued ability to provide 20% of the electricity the UK uses. These life extensions not only generate funds for the operator, they also ensure employment for those on site and the huge supply chain that support our reactors.

In this edition of the magazine we take a look at the significance of finance to building the supply chain, the educational work that is going on up and down the country, and the importance of visitor centres to educating the public about nuclear.

Since the last edition of the magazine, Michael Fallon MP has been appointed as Energy Minister. This is in addition to his role as Minister of State for Business and Enterprise. This new role serves to remind us of the vital importance of getting the business case right in our energy investments – pushing to involve as many parts of the UK supply chain as possible, in the huge investment in energy infrastructure up and down the country.

Horizon Plans Progress by. Tristram Denton / Horizon Nuclear Power

Horizon Nuclear Power has been setting the pace for industry engagement this month, publicly communicating details about its expected programme and approach to procurement.

The developer for Wylfa and Oldbury – acquired by Hitachi Ltd in a £696million deal last November – hosted two oneday supply chain engagement events in conjunction with its main contractor, Hitachi-GE Nuclear Energy Ltd (HGNE).

The two conferences, held in Llandudno and Gloucester, were centred on an explanation of the company’s working timeline to development of its first reactor at Wylfa, and explanations of the commercial scope of Horizon and HGNE. With first commercial generation expected within the first half of the 2020’s, Horizon is working to ready the project for a final investment decision by its shareholders once all necessary permissions are in place – expected to be in 2018.

Horizon COO Alan Raymant commented on the building blocks necessary to allow a final investment decision on the project: “This is about bringing the project forward to a point where our shareholders can make the final decision to press ahead with development”.

“There are a number of parallel work streams which we will progress over the next few years: work around Licensing and Generic Design Assessment; the consenting process towards achieving a Development Consent Order; organisational development to become a site licence holder; developing a strong and capable UK supply chain; and clearly the on-going discussions around EMR, followed later by commercial negotiations with Government”.

“These are the fundamental building blocks of the project. When all of those processes are completed to the right level, our shareholders will be able to give the final green light for development”.

Looking at short and medium term objectives, Raymant was clear that milestones arise quickly: “We expect to support HGNE in making the first substantive submissions on the GDA process around the back end of this year, and hope to undertake our first stage of public consultation for the DCO process

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at Wylfa next summer. Making strong progress in these early years is crucial to ensure we’re well advanced as we move into the later stages of the project”.

Throughout the supplier events however, Horizon was keen to emphasise the structure in place behind their project. With Hitachi Ltd currently the 100% shareholder, Horizon expects to contract HGNE on an Engineering, Procurement and Construction (EPC) basis to deliver the plant.

The forerunner to this agreement – the Front End Engineering and Design (FEED) contract was signed this month between the two companies and will run up to the point of a final investment decision. The contract – which represents tens of millions of pounds per year - sets the framework for design work to be undertaken for the new build project at Wylfa. It will support site development work, and allow Horizon to assess the best construction timetable.

The approach taken to development means that once construction begins in earnest the majority of direct work will flow through HGNE. Horizon is expected to procure around 10-15% of overall project scope, with HGNE likely to bring in some 85-90% of the projects.

Site clearance and preparation works are expected to begin from 2015, with major construction following a final investment decision in 2018 and first nuclear concrete a year later.

With Wylfa and Oldbruy estimated as a combined £20billion investment in the UK, both Horizon’s owners scope and the HGNE led delivery team represent substantial opportunities for supply chain companies.

Discussing Hitachi’s ambition to deliver up to 60% of the project from UK suppliers, Alan Raymant emphasised the opportunity for UK firms, and stressed the need for all suppliers to reach the necessary levels on cost, capacity and quality. “This is a huge investment in UK infrastructure, and a massive opportunity for UK businesses” he said.

“From heavy construction and engineering, through technical support and consultancy, right across to service level contracts, Horizon and HGNE will

provide opportunities for all types of business. The key to maximising UK content is early engagement – helping UK suppliers understand our project, encouraging companies to consider what they can bring to the project, and developing their readiness to play a role on the development”.

Horizon has also this month launched its new-look website, complete with a supplier’s registration page and is encouraging all suppliers – including those who have previously registered details with the company – to log on and submit their details.

Key steps for suppliers: →→Register with Horizon via the new-look web-portal →→Consider their role in the project, and likely tiering of contracts →→Continue to monitor developments →→For more information, contact suppliers@horizonnuclearpower.com →→For more information about Horizon contact tristram.denton@ horizonnuclearpower.com

SME Focus from the NDA Llandudno The inaugural meeting of the first of the Nuclear Decommissioning Authority (NDA) Regional Steering Groups was hosted by the Welsh Government in Llandudno Junction on 4th March.

In response to the UK Government’s challenge that public organisations increase the proportion of contracts awarded to Small and Medium-Sized Enterprises (SMEs), the NDA is taking the first steps to increasing access by SMEs to the £1.6 billion spent annually within the supply chain.

This focus on SMEs includes the creation of a National SME Steering Group with members represented from Regional Groups who will work to improve NDA Estate access.

The Wales Steering Group provides a forum for strategic engagement between the NDA, the nuclear Site Licence Companies (SLCs), Tier 2 suppliers, and SMEs within the NDA Estate supply chain.

Matt Tuck, Chairman of the Wales SME Steering Group and Managing Director of local business Matom Ltd, commented: “We are very pleased that this opportunity

has arisen to develop SME links within the region and nationally. The key priorities and courses of action for the group were agreed and significant progress is being made.”

“Our Focus is on communicating to the Welsh SME community and overcoming barriers to nuclear sector accessibility.

There are a plethora of quality Welsh SMEs with good sector experience, and contribution to the Group will undoubtedly assist SMEs across Wales in their consideration of the nuclear sector.”

For further information please contact beth@matom.com

2013 | Summer — 3

In the News

UK Nuclear Exports

With an energy crisis looming, a credit crunch to pay for and CO2 emissions to cut, nuclear is never far from the headlines.

By. Keith Parker

Although EDF Energy and the Department of Energy and Climate Change have not commented during the ongoing negotiations, the press have continued to speculate. The Financial Times reported in early June that a 35year term had been agreed upon, leaving cost discovery and a final strike price to be agreed whilst The Daily Mail have stated that a deal is set to be cleared by Ministers within weeks.

Speculation will continue, and both parties to the negotiations will continue to work hard to find a resolution which offers a fair return for EDF Energy, and a fair rate for the consumer.

In April, an open letter signed by 18 academics including the Government’s former Chief Scientific Adviser, Sir David King and the Vice-President of the Royal Academy of Engineering, Dame Sue Ion was printed in the Sunday Telegraph outlining concerns that negotiations on Hinkley Point C were moving too slowly. Listing some of the Governments commitments including the Beddington report and the Nuclear Industrial Strategy - the signed letter highlighted the fear that the imperative nuclear new build plans could be undermined if a deal on the pioneer project is not reached.

Planning consent was granted to EDF Energy in March to build a nuclear power plant at Hinkley Point in Somerset. Keith Parker gave an interview on BBC Radio 5 Live on the significant opportunities for the region. Kirsty Alexander was interviewed on BBC Radio Wales about the implications of the successful planning application in relation to a future Horizon application for Wylfa on Anglesey.

Keith Parker was interviewed by documentary film-maker Martin Jay about the UK’s nuclear renaissance. Keith explained how important Britain’s new nuclear build programme was for our future energy needs and the role it will play in keeping bills down while combating climate change.

On the BBC’s Newsnight, reporter Joe Lynam investigated Britain’s looming energy gap and consumers soaring bills.

Following the report, presenter Jeremy Paxman interviewed Energy Secretary, Edward Davey MP. He was asked, “Why (do) you propose to go ahead with an extension of nuclear power?”

The Secretary of State responded explaining that he was impressed with the UK’s nuclear safety record and explained that his main concern was getting the “right price” for consumers and made it clear that nuclear power is a clean, secure and affordable source of energy.

The NIA’s Public Policy Adviser, Peter Haslam gave an interview to Russian TV - Station Moscow 1. Peter spoke in depth about the UK’s approach to nuclear power both its plans for a fleet of new nuclear power stations and the decommissioning work it has undertaken which is recognised throughout the world.

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World nuclear power reactors june 2013 source world-nuclear.ORG

Increasing energy demand, coupled with concerns over climate change and dependence on overseas supplies of fossil fuels are coinciding to make the case for increasing use of nuclear power around the world.

A WNA projection shows at least 1100 GWe of nuclear capacity by 2060, and possibly up to 3500 GWe, compared with 373 GWe today. While over 80% of this increase will be in countries which already use nuclear power, there are several countries, such as the UAE and possibly Saudi Arabia, which are or will be embarking on nuclear for the first time.

In the largest growing markets, China is planning a huge increase in nuclear capacity to 70-80 GWe by 2020, and India's target is to add 20 to 30 new reactors by 2020.

In addition, the market for decommissioning is growing as reactors around the world reach the end of their operating lives. Globally, over 200 plants are scheduled to close by 2030 creating a decommissioning market estimated to be worth over £300billion in the next 30-40 years.

International cooperation and commerce in the field of nuclear science and technology is also growing.

There are increasing opportunities for British companies in overseas nuclear programmes – including new build, maintenance and life extensions of operating plant, and in decommissioning, environmental remediation and waste management, and in R&D. Industry and government are working closely together to raise awareness of these opportunities among British companies, highlight British expertise and capability to potential overseas clients, and support British companies to compete successfully in overseas markets. The revival of

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Operable Reactors

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a nuclear new build programme in the UK is attracting significant international interest and is helping to position the UK once again as a serious contender for nuclear work overseas.

The progress we are making in decommissioning is also widely recognised and appreciated internationally.

The challenge for the UK is to create a coherent “nuclear offer” that encapsulates the full range of skills, capabilities and experience that British companies can assemble to assist in overseas programmes. NIA, UKTI and NIA member companies have already done good work in relation to opportunities in Japan (Fukushima decommissioning) and Jordan (potential new build programme) to co-ordinate a UK offer based on a clear awareness of the needs of the clients in those countries, careful selection of the right combination of companies able to meet those needs, and adequate preparation and planning to give the UK an edge against international competition. This is a model we would seek to build upon in other overseas markets.

There is a strong emphasis on nuclear export promotion in the Nuclear Supply Chain Action Plan and the Nuclear Industrial Strategy. In addition, NIA has produced a detailed report commissioned by UKTI of the overseas opportunities and the priority markets available to UK exporters, and UKTI have identified several international high value opportunities in the nuclear sector.

With the support of government, and leading UK nuclear exporters we now have an ideal opportunity with the progress being made in the domestic market, the higher level of interest in the nuclear supply chain, to create a more coherent and compelling UK nuclear offer to clients across a wide range of overseas markets.

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Closer Collaboration Between EDF & CGNPC Areva, EDF and China Guangdong Nuclear Power Corporation (CGNPC) have signed a three-way agreement for further cooperation cementing relationships between two of the world's biggest generators of nuclear power and the provider of the technology on which their power plants are based.

With 73 units in France, EDF remains the world's largest nuclear utility, whereas CGNPC has seven reactors in operation now, 17 under construction and more planned for the future. Most of these are PWRs with Areva origins.

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Life-Saving Case for Nuclear A landmark study has put the figure of 1.84 million on the number of lives saved by worldwide use of nuclear power instead of fossil fuels. The report co-authored by former NASA scientist James Hansen presents a dramatic new case for nuclear energy.

It begins by taking historic data from the nuclear sector and estimating emissions from fossil fuels that would likely have met the same generation role if nuclear had not been used.

Nuclear plants with below a 65% capacity factor were swapped for gas

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4 generation while higher performers were swapped for coal, which worked out as a mix of 95% coal and 5% gas replacing nuclear.

Nuclear power has served to buy time and make climate mitigation far more feasible. The emission of some 64 billion tonnes of carbon dioxide equivalent have been avoided by nuclear power - almost two years' emissions at today's rate of around 34 billion tonnes per year.

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Nuclear Generation Curbs Air Pollution The revving up of nuclear power and the phase-out of coal has led to a dramatic improvement in air quality in Canada’s Ontario province according to data from the Ontario Ministry of the Environment.

Data has highlighted a remarkable reduction in air pollution; in 2005 ‘smog days’ were affecting residents for at least ten days a year and the worst affected areas had more than forty smog-warning days. In stark contrast, in 2011, the worst affected areas had only eight smog days while 18 locations had no smog warnings throughout the entire year.

In terms of generated power Ontario was 85% carbon-free in April this year with nuclear providing 58% of total electricity generation.

Nuclear Development Council for Vietnam Vietnam is to set up a new National Council for Atomic Energy Development, tasked with identifying strategies and priorities for the development of nuclear energy in the country.

Prime Minister Nguyen Tan Dung's announcement of the decision to set up the council was reported by Vietnam's official government press agency.

Headed by Vietnam's science and technology minister, the council will advise the government on "orientations and strategies," identify priority areas for each development stage, and draw up key policies on nuclear energy development and application.

It will also coordinate ministries, agencies, governmental bodies and localities in developing nuclear energy and "realising" nuclear power programs.

The council will also take on a role in international nuclear cooperation activities with organisations and individual countries.

Vietnam's plans for nuclear power are well advanced. The country's Atomic Energy Law came into force in 2009 and intergovernmental agreements in place with Russia and Japan allow for the construction of its first two nuclear power plants, both in Ninh Thuan province.

Construction work has yet to begin, although the first Russian-designed unit at Ninh Thuan I is pencilled in to begin operation by the end of 2020.

For more details on these and other stories please visit www.world-nuclear-news.org

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Meet Richie: The Friendly Face of Nuclear Who is small, blue and friendly?

No, not a smurf – Richie!

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ichie is an online, animated character created by URENCO who acts as official ambassador for nuclear energy and supports URENCO’s school outreach & education programme.

Through Richie, URENCO connects with its youngest audiences, teaching them about energy, and in particular nuclear energy, in an engaging and educational way. Since 2007, URENCO has reached out to more than 28,000 pupils globally through activities including primary school science workshops.

These workshops, hosted by an energetic URENCO science presenter, teach children in Key Stage 2 (school years 4 and 5) about energy. This includes why we need energy, the different ways in which energy can be created, and, more specifically, nuclear energy.

By giving children the opportunity to take part in a variety of hands-on experiments, they learn about science and energy in a fun and exciting way. Experiments demonstrate sorting, separation and centrifugal spinning, as well as key skills possessed by scientists, including observation and description.

The Richie science workshops receive outstanding feedback, with teachers’ comments including ‘I was surprised by the knowledge of two boys who are usually quiet’ and ‘a boy who can be hard to focus in class said, “I love science, this is great!”’

At the end of each workshop session, children are given a Richie goodie bag, containing further information and a link to the Richie website. The website features activities and

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games which allow children to continue to learn about the nuclear fuel supply chain independently.

Building on a growing demand for technology and the requirement for engaging educational content, URENCO also launched a Richie game in summer 2012 to reach core audiences using the type of content and through media channels that will excite their interest to learn more about how their daily lives are powered.

‘Richie’s World of Adventure’ is an app-based online game, where Richie travels around the world collecting power and travelling through some of the most iconic locations on the planet.

As they progress through the game, players are educated about electricity and nuclear energy through funny gimmicks and interesting facts.

Key Facts →→Workshops delivered to 29,000 children worldwide since 2007. →→13,400 times game has been played online. →→6,528 mobile game downloads. →→1000% increase in website hits around science workshop dates. →→83,036 unique visits to website. →→Richie posts science, energy and nuclear fuel-related links and facts every day on Facebook. →→Extremely positive feedback received from both staff and pupils.

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Richie visits each of URENCO’s customer countries, as well as those emerging within the nuclear industry market. ‘Richie’s World of Adventure’ is undoubtedly cross-curricular, educating children in geography as well as science and IT. This game fits in with URENCO’s wider education and engagement strategy. URENCO recognises the importance and need to engage with and educate young people about energy, the energy mix, and the role of nuclear energy. As such, education is among the core areas of focus of URENCO’s sustainability strategy.

‘Richie’s World of Adventure’ was launched in August 2012. In January 2013, a further six levels were added to the game coinciding with the BETT exhibition, attended by education professionals, and ahead of the Big Bang Science Fair which is attended by school children and teachers.

The game can be played on iOS and Android devices as well as online, worldwide. It achieved more than 10,000 downloads in one month postlaunch. URENCO has seen a 240% increase in visitors to their Richie website since its release.

URENCO are now looking to expand their Richie science workshop programme in partnership with other companies in the nuclear energy industry.

If this is something which you or your organisation is interested in, please contact Brooke Charlesworth at brooke. charlesworth@urenco.com

VISIT urenco.com /richie

2013 | Summer — 9

2000 Tons of Metal Successfully Recycled Across the UK

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tudsvik has reported on its first three full years’ of operations at its Metals Recycling Facility (MRF) at Lillyhall in Cumbria. As the UK’s first new nuclear site in almost 20 years, the MRF was high profile news during its development and construction phase in 2007/8. Since moving into active commissioning in 2009, the facility has steadily increased loads and has now moved to full operational status under a new ‘Safety Case’ agreed with the Office for Nuclear Regulation (ONR).

Government policy has focused on recycling and re-use rather than disposal.

The Studsvik MRF was conceived to help address the lack of capacity at the Low Level Waste Repository (LLWR) in Cumbria to meet the forecast volumes of Low Level Waste (LLW) arising from the NDA and Ministry of Defence’s decommissioning programmes and provide an environmentally beneficial alternative to disposal.

Studsvik has owned and operated its own nuclear licensed facilities in Sweden for over 25 years, treating and recycling low level radioactive material, and in April 2006 the company purchased a site in Lillyhall, Cumbria to create a UKbased LLW recycling facility Upon completion in 2009 the MRF became the UK’s only private nuclear licensed site for metallic LLW treatment and operates in conjunction with the environmental arrangements set down by the ONR and the Environment Agency (EA) for the purposes of: →→ Segregation and size-reduction of Low

Level Waste metals

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→→ Treatment and clearance within the UK →→ Transfer to Studsvik’s Swedish

facilities for additional treatment by metal melting via Transfrontier Shipment Authorisations, →→ Packaging and disposal of processing residues and secondary wastes.

Market Development Challenges Initially the market was slow to develop with only 300 tonnes of metal shipped to the facility in the first full year of operations. There were frequently long lead times prior to delivery with projects being vulnerable to delay, and the small tonnages delivered meant inefficient scheduling of work. Initial shipments of waste had been packaged for disposal but were diverted for recycling, and as such had not factoredin efficient retrieval of the waste for recycling causing unloading difficulties.

During this period, Studsvik invested heavily in programmes of work with customers to help inform consignors of the facility Waste Acceptance Criteria (WAC) and the various ways in which scrap metals and larger components could be accepted. Appropriate characterisation is critical to the success of the recycling process and waste needs to be assessed individually based on its fingerprint, contamination and physical properties, and Studsvik has supported processes to improve and streamline the waste consignment process.

Future Optimism Waste consignments have continually improved over the last 3 years through the establishment of long-term contracts with private sector customers and the development of LLWR’s waste treatment framework contracts. These have enabled standardised waste packages to be received which improve efficiency for both the customer and Studsvik.

Furthermore, the NDA’s process of developing Joint Waste Management Plans and incentivising consignors against recycling targets has created a growing market.

In the first three years of operations, over 2000te of metal has been processed at the MRF from 21 different sites across the UK. The recycling

The Studsvik MRF provides: rate has been very high at around 96% (i.e. the ratio of metal recycled to residues disposed). There have been no regulatory incidents and an excellent safety performance that has culminated in Studsvik receiving the 2012 RoSPA Sector Award for the Waste Management and Recycling sector.

The waste processed at MRF has saved over 4000m3 of LLWR vault space and contributed to prolonging the life of the repository by three years. With the continued support of the LLW customer base and delivery against Joint Waste Management Plans, Studsvik anticipates that the MRF will continue to offer significant and ongoing benefits to the UK nuclear industry into the future.

→→Taxpayer cost savings for metal recycled recycling has almost half the lifecycle costs of disposal →→Private sector investment, providing new high quality jobs in the nuclear sector including 35 jobs at Lillyhall in Cumbria →→A UK-based solution meeting the proximity and self-sufficiency principles, providing access to specialist international facilities where required →→A tool for customers to implement the Government Low Level Waste policy, the Low Level Waste strategy and Waste Management Hierarchy →→The best environmental option and the best available technique for Low Level Waste metals arising from the nuclear industry

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What is State Aid? State aid is any form of assistance from a public (i.e. Government) body which has the potential to distort competition and effect trade between member states of the European Union. This is important because giving favoured treatment to one business could potentially harm its competitors; it could also hinder the long term competiveness of the EU by propping up inefficient businesses.

To prevent this happening the EU Commission closely regulates the market through its Competition Directorate (DG Competition). Member states are obliged to notify and seek the Commission’s approval before proceeding with any proposals which might provide public support. DG Competition then gives very careful consideration as to whether that support constitutes state aid.

Is this a political issue; could other Member States block the arrangements?

No. The Commission (DG Competition) has sole competence to decide whether a State Aid is compatible with the Treaty, and this is a quasi-judicial process with a set procedure to be followed. The Commission (DG Competition) are very experienced in dealing with state aid cases and will approach them from a legal perspective.

Do individual projects need State Aid approval?

Will Electricity Market Reform arrangements be approved?

This is a matter for DG Competition, but we believe they will. The EU rules state that support is allowable provided it is designed to promote economic development and other legitimate policy objectives, and that the benefit outweighs any distortion of competition.

The EMR proposals are intended to provide sufficient revenue stability to low carbon generators to bring new investment forward, which will help the UK to meet its energy security and carbon reduction objectives. They are also carefully designed to create a level playing field for all low carbon technologies, at minimum cost to consumers.

This Process could be long. Will work on All low carbon projects be held up pending State Aid approval?

This is unlikely. Whilst it is possible given the procedures outlined above that full clearance may not be available quickly, the direction of travel is likely to be clearer much earlier.

This means that it would be open to a low carbon/nuclear project developer, if necessary, to take their Final Investment Decision on the basis of their assessment of the risks, before final state aid approval was forthcoming.

What is the timetable for approving State Aid? The Commission must decide cases according to a set timetable.

In theory the Commission has to take a decision within 2 months of a complete notification. However in practice this is a dialogue; the Commission need to fully understand the issues and in a complex case they may have questions that could prolong the process.

Once this stage is complete the Commission can then start a further period of two months if they consider the notification is incomplete. Thereafter they will either approve the application or embark on a second stage formal investigation that may last a further 6 months.

No. However in many cases construction will only go ahead if a strike price is agreed under the Government’s Electricity Market Reform arrangements. It is the introduction of the FiT Contracts for Difference for low carbon generators under these arrangements that need to be cleared with the EU Commission.

EU State Aids Regulations and Electricity Market Reform Commentators often state that the Government’s Electricity Market Reform arrangements – that are a vital prerequisite for investment in most new low carbon generation including nuclear - will be ‘subject to European state aids clearance’. What does this mean and how important is it?

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The Twittersphere

New Director for Nuclear Advanced Manufacturing Research Centre

Not only can we interact directly with MP’s, organisations and individuals in the Twitterspehere, but it is truly a global community. Our connections span the world, keeping us apace with nuclear developments everywhere.

At the moment, our friends in the United States are eagerly anticipating the forthcoming documentary film Pandora’s Promise. It will be on general release in US cinemas in June.

The film, directed by Robert Stone, features five high profile environmentalists who were once opposed to nuclear energy but in light of the evidence have changed their minds. The Twitterati are urging: anyone opposed to nuclear energy but open-minded enough to review new evidence should see the film.

Casting a new light on the accidents at Fukushima and Chernobyl, as well as tackling thorny issues such as nuclear waste and fear of radiation, the sceptical viewer is asked: “What if everything you thought about nuclear power was wrong?” Reviews are flooding the twittersphere: “Pandora’s Promise makes the utterly convincing case that anyone who considers themselves an environmentalist or takes climate change seriously should Who to follow? favour more nuclear power.”

Want information on nuclear Owen Gleiberman of Entertainment Weekly wrote: and other relevant topics? “‘Pandora’s Promise,’” is built This issue we recommend you around what should be the follow: real liberal agenda: looking at an issue not with orthodoxy, @TheBTI but with open eyes." @N_E_I It won’t be released in the @PandorasPromise UK until November, but in the @UKNNL meantime you can watch the trailer online, and follow the reaction on Twitter.

To watch the official trailer for Pandora's Promise visit pandoraspromise.com.

Twitter Count

@NIAUK

Followers: 1159 Tweets: 994

@UKNNL delighted to be partnering @SellafieldLtd on this work http://bit. ly/13PxkvG . Nuclear innovation - it's what we do! #nuclear Energy Minister Michael Fallon: “Decarbonisation of the energy sector, done in the right way, is vital” #energybill

“I am extremely proud to be joining the team at the University of Sheffield and the Nuclear AMRC. The University is a pioneer of advanced manufacturing and Professor Keith Ridgway has done an outstanding job of positioning the Nuclear AMRC to support the UK nuclear industry.”

Mike Tynan Nuclear AMRC

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of the government’s ‘Nuclear Industrial Strategy’ which outlines a welcome commitment for the collaboration between government, industry and leading academics to expand the UK’s nuclear sector at home and abroad in an initiative to secure jobs for British workers throughout the nuclear life cycle.

Newly appointed Energy Minister, Michael Fallon MP who announced the Nuclear Industrial Strategy in March reacted to the appointment explaining: “Mike Tynan has a huge amount of experience in the nuclear industry and brings a real depth of knowledge to his new role.

“Mike’s background and CV mean he is ideally placed to work with manufacturers as they look to enhance their capability and competitiveness.”

This is a pivotal time for the future of the UK’s nuclear industry and the Nuclear Industry Association welcomes Mike Tynan’s appointment. His wealth of nuclear experience will be crucial to the smooth progress of the UK’s ambitious nuclear plans.

Nuclear AMRC © Bond Bryan Architects — www.bondbryan.com

Former Chief Executive of Westinghouse UK Mike Tynan has been appointed Director of the Nuclear Advanced Manufacturing Research Centre (Nuclear AMRC).

Located at the University of Sheffield and supported by the University of Manchester, the Nuclear AMRC was formed to assist British manufacturers to meet the challenges of equipment supply that a new f leet of nuclear power stations will bring. By mixing industry experience with university innovation it is hoped that companies will be put in a strong position to fight for competitive tenders resulting from the build programmes across the UK. Mike has held a number of senior positions at nuclear sites across the UK, including Sellafield, and he joined Westinghouse in 2005. During his time at the American nuclear plant developers he was part of the Westinghouse European, Middle East and Africa regional executive and more recently led the successful Generic Design Assessment (GDA) process for Westinghouse’s AP1000 reactor.

His appointment at the Nuclear AMRC comes at a critical time for the UK’s nuclear industry following the publication

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© Sellafield Limited — www.sellafieldsites.com

IN VIEW

Goliath Crane Built for Retrievals Sellafield Ltd has installed a mammoth ‘Semi Goliath’ crane to aid in waste retrieval from a 60-year-old storage silo.

The crane is an integral part of a new Waste Retrieval Facility (WRF) and will be used to lift 3m3 legacy nuclear waste packages onto road transporters.

Built in 1951 to store radioactive fuel cladding the silo is essentially a giant concrete safe and extreme safe breaking skills are going to be used to break through the thick concrete walls and remove the radioactive waste.

The crane weighs a total of 109 tonnes, has a 63 tonne safe working load capacity and has a design life of 20 years.

“ We’ve had to bring in a 350 tonne capacity mobile crane to build our crane at Sellafield. The team had to carry out the delicate job with surgical precision in order to ensure the safety of the legacy waste silo and its radioactive contents.

The workforce had to cope with extremes of weather including snow and high winds, but still managed to complete the job ahead of target.”

Neil Crewdson, Head of PFCS Projects Sellafield Limited

2013 | Summer — 19

Fukushima Daiichi Reactor 4 © TEPCO — www.tepco.co.jp

NEWS IN BRIEF

“RadBall” Technology to assist in Fukushima cleanup In May 2013 it was announced that Hitachi-GE Nuclear Energy Ltd. (HGNE) will work with the National Nuclear Laboratory (NNL) to assist in the complex clean up effort at the Fukushima Daiichi nuclear power plant in Japan.

The foundations of this deal first emerged after a trade mission to Japan in October 2011, organised by UK Trade & Investment to promote the UK’s decommissioning capabilities.

Radioactive material was dispersed within the reactor systems and the plant as a whole, creating an extremely difficult cleanup challenge. As a result the NNL’s rigorously tested and proven “RadBall” technology will be used to identify the location of major radioactive hot-spots.

According to the NNL the RadBall technology, “is based on the use of a radiation-sensitive material to analyse the extent and location of radioactive contamination within confined spaces.” Furthermore the system is, “small and does not require any external power supply” making it the perfect tool for this demanding environment.

Responding to the announcement, the NNL’s Managing Director Paul Howarth said: “The cleanup of the Fukushima Daiichi site is one of the major challenges facing the global nuclear industry at present, and I’m delighted that this NNL technology looks set to be considered as part of the solution to that challenge. We will work with HGNE and TEPCO to better understand the details of the site and to help them to evaluate the capabilities of RadBall.”

Dounreay Consolidation Complete Another landmark has been reached in the decommissioning programme at Dounreay, Scotland. The completion of the consolidation phase will enable the new Dounreay lifetime programme to be implemented with the Nuclear Decommissioning Authority’s (NDA) approval.

In March 2012 the ownership of the site was transferred to Babcock Dounreay Partnership from Dounreay Site Restoration Ltd (DSRL) for the management of the decommissioning, demolition and clean-up of the nuclear site. The following nine month consolidation phase has now been completed with the achievement of two main objectives – the replacement of the previous Dounreay Life Time Plan (LTP) and the instalment of a projectfocused structure.

According to the Babcock Dounreay Partnership, the main challenge of the consolidation phase has been delivering the Life Time Performance Plan for the NDA to schedule considering the difference between the original proposal drafted and the material challenges found on the site.

Commenting on the milestone, Babcock Dounreay Partnership’s Change Director, Alastair MacDonald, said: “Consolidation has been primarily about getting the LTP (Life Time Plan) embedded into the site programme and project management systems, and ensuring there is an organisation in place of the right size, shape and skill set to deliver that LTP.” The execution of the programme is now underway and it is expected that the Dounreay site will be in its interim end state by 2025 – up to thirteen years earlier than previous estimates, saving the UK taxpayer in excess of a billion pounds.

UK Take Full Control of Foreign Plutonium Following a series of talks, the British government has agreed to take control of approximately three tonnes of plutonium it was already storing on behalf of several foreign firms. The purpose of this is to eventually use the stockpile as reactor fuel for future power generation.

This exchange now means that the UK has a civil plutonium stockpile of over 121.1 tonnes. This is the equivalent to 900 million barrels of oil and represents a considerable energy resource potentially needed if the UK is to meet its growing energy demands.

The resulting swap means that the UK will take control of 1850kg from French utilities, 750kg from Germany and 350kg from Dutch utility EPZ. Saving on transport costs and allowing the government to have full control over its stockpile, the total of foreign owned plutonium on the Sellafield site is now 24.9 tonnes.

A number of options are currently available for the government to consider how to best utilise this vast energy resource. The fuel could be reprocessed into the formation of mixed-oxide (MOX) fuel which can be used in any number of reactors all over the world. Other potential option include GE-Hitachi’s Prism reactor which uses plutonium-based fuel and Candu Energy’s larger Candu 6 units.

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Legal Affair’s Chair Elected Vice Chair of INLA Ian Salter, Head of Nuclear at Burges Salmon, and Chair of the NIA Legal and Financial Affairs Working Group, has been elected Vice Chair of the UK branch of the prestigious International Nuclear Lawyers Association (INLA).

INLA’s objective is the promotion and pursuit, on an international level, of studies and knowledge of legal issues related to the peaceful utilisation of nuclear energy. It has been established for over 40 years and has a large worldwide membership of legal, financial and insurance professionals.

Ian will work alongside the current chair Alvin Shuttleworth (former Group Legal Director of British Nuclear Fuels) until October 2014 when Alvin will step down and Ian will become chair.

SNAPSHOT

Arvia and National Nuclear Laboratory Working to Treat Organic Wastes NIA members; Arvia and the National Nuclear Laboratory (NNL) will work collaboratively on a project to treat organic wastes contaminated with high levels of alpha radiation at Sellafield.

Funded by the government-backed Technology Strategy Board (TSB) and supported by the Nuclear Decommissioning Authority (NDA), the project will utilise Arvia’s proven technology to destroy contaminated oils and solvents.

Approximately 5% of the UK’s 230,000 tonnes of ILW (Intermediate Level Waste) is organic and Arvia’s decontamination procedure offers a valuable opportunity to confront the challenge of untreated waste organics around the world.

Arvia, who are already located at Sellafield, will work with the NNL to test the unique process on a series of intermediate level waste materials that are not currently part of the waste disposal chain.

Head of Technical Capability at Sellafield Ltd, said: “Plutonium contaminated oils and solvents are stored on the Sellafield site and are not currently treatable using conventional techniques. The Arvia process therefore offers significant potential benefits for our industry.”

One of which will be the enormous multi-million pound savings for Sellafield. and the NDA, who own the Sellafield site.

Barney Whyte, Business Leader for Waste and Residue Processing at NNL, was extremely excited at the collaboration: “This project will help pave the way to solving a wealth of waste problems here in the UK and further afield. Our goal is to assist in the development of solutions to some of the most pressing concerns for the nuclear industry and in undertaking this project we hope to move closer to solving this particular issue.”

2013 | Summer — 21

Hunterston Powering On

by. Hannah Randle

On a beautiful spring day on the Ayrshire coast, I made what was, rather embarrassingly given the more than two years that I have spent in the nuclear industry, my very first visit to an operational nuclear power station. And it did not disappoint.

The purpose of the trip – as well as to increase my own knowledge – was to experience first hand how the visitor centre has been working since it opened in 2012, how popular it had been and to speak to the guides working there about their first hand experience.

The original visitor centres at nuclear sites across the UK were closed following the terrorist attacks in the US on September 11th 2001. Now, more than a decade later, EDF Energy is re-opening its centres, and Hunterston was the first.

Hunterston B power station in Scotland has been operating since February 1976 and in December 2012 it was announced that its life would be extended by 7 years, until 2023.

It is fair to say that it is a real jewel in the local economy.

It employs a total of: 531 staff, 180 permanent contractors, 25 apprentices and 2 graduates. Most importantly, the majority of those employed at the station live within a 25 mile radius of the station, so the local economy benefits from an annual boost of around £40 million thanks to the plants continued operation.

The vital role that visitor centres can play in educating those who live both near and far from the station is evident. At the time of my visit to Hunterston, it was the only station with a

22 — summer | 2013

John Robertson MP visits Hunterston B Visitors Centre

centre open north of the border (Torness has since opened theirs) and was attracting people – particularly school children – from across Scotland, not only in the immediate local area.

For me (and my non-scientific background) the simple way in which the guides explained the working of the station brought it to life – for example using the analogy of a station working like a kettle boiling water.

Glasgow North West MP and Nuclear Energy APPG Chair John Robertson, who participated in the visit welcomed the re-opening of the centre: “Educating children and adults alike about the benefits of nuclear energy as a vital lowcarbon energy source for the UK is extremely important and what better way than to allow people to see it for themselves first hand?”

This is a sentiment that I absolutely echo. I have come away from my day in Hunterston with more knowledge and extremely impressed at the scale of the station and how it runs.

If you have any questions about the visitor centres, please contact hannah.randle@niauk.org and we will pass your queries on to EDF Energy

Q&A with Val Poyser at Hunterston Visitors Centre How long have you worked at Hunterston Power Station?

17 years

You worked in the original Hunterston Visitor Centre – do you think it is a good thing that Visitor Centres have been reinstated across EDF Energy sites?

Definitely! They are an excellent way to inform people of how sustainable Nuclear Power is. The centres cover such a variety of subjects such as power generation, health and safety, the environment, education and it gives us as a company an ideal opportunity to encourage the future generations of scientists and engineers.

Who has the Visitor Centre been popular with – I imagine lots of school groups?

The visitor centre and the tours are extremely popular with schools, universities, colleges, and a variety of clubs. We have had such complimentary feedback from all our visitors about how enthusiastic the guides are and how informative and educational the whole experience is.

Are there specific nuclear issues that visitors are keen to know more about?

We do tend to get a number of questions about the life span of the station and what the plans are for the future and the future of the employees.

2013 | Summer — 23

NUGEN DEVELOPMENT TIMELINE

New Directors to Lead Development at Moorside

2010 DECEMBER NuGen becomes the 250th member of the Nuclear Industry Association

2011 JANUARY NuGen holds its launch event at Westlakes in West Cumbria

DECEMBER NuGen names its project Moorside

2012 OCTOBER NuGen begins its first phase of site assessments

2013 APRIL NuGen and contractors Babcock complete the first phase of surface site investigations at Moorside

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NuGeneration Ltd, the company owned by GDF SUEZ and IBERDROLA, with plans to build at Moorside in Cumbria have announced the appointment of Robert Zadora and Manuel Marco as Executive Directors of the company.

Both directors bring to the role significant experience of developing major nuclear energy projects. The move comes as NuGen progresses to a new phase of the Moorside project. NuGen is making good progress with its site assessment; currently analysing results after having successfully completed on-site work of phase one.

Preparations for phase two of site assessment are well under way and will involve sub-surface work, including the drilling of boreholes on-site to enable a variety of tests to be completed.

NuGen are focused on building a robust business case for this significant investment, working hard to de-risk the project before exercising the option to build.

The Moorside project could result in the largest-ever investment in West Cumbria by the private sector, and NuGen have reiterated their commitment to this project, working to the time scale outlined in the Governments National Policy Statement.

1+1=4 The Hidden Value of the UK Nuclear Supply-Chain by. Alastair evans

t

here are a number of essential components to get right if UK companies are to stand a good chance of winning competitive tenders from the new build programme, and the ongoing decommissioning work.

Firstly, an intelligent customer is essential, be that EDF Energy, Horizon, NuGen, or the NDA. Secondly, you need a broad skills agenda to ensure that suitably qualified people can be dispatched to sites, or to work on products.

Finally, you need an established and thriving supply chain.

What is missing from this list of requirements is financing. Government reports all the way back to 2009 make passing reference to the need to ‘consider finance’. This theme continues to this day, with the expectation that SMEs will take out Government backed loans, or other forms of financial support in order to invest in their businesses.

We have not built and commissioned a new nuclear plant in the UK for nearly 20 years, which inevitably leads to investment questions being asked of supply chain in terms of its capability and competitiveness.

Ernie Richardson, Joint Managing Partner

Paul Strzelecki and Ernie Richardson, seasoned technology investors, identified this shortcoming in the nuclear sector in 2012 and worked with Government on proposals to bring equity funding into the nuclear supply chain by building a fund.

This fund would target the SME marketplace; with a focus on assisting companies to invest in their offering in time to take part in the new build programme.

Paul & Ernie decided that the timescales being considered by Government did not take account of the fact that action was needed now to help SMEs. Undeterred they set up Nuclear Capital Partners (NCap) in early 2013 with the intention of identifying companies that could secure contracts for the new build programme and would need additional funding to deliver those contracts. In addition, NCap began broadening their offering to cover those companies looking to expand in the decommissioning, and current operations markets.

Nuclear Capital Partners believe that there is at least £1billion of investable money from major global private equity houses, and they plan to help channel that into investable companies for growth and creative acquisitions.

The difference between taking private equity investment and money from a bank is the time and contribution from those backing the investment.

Banks offer money for collateral and a belief that you will pay it back. Private equity partners take the risk with you, investing money they have secured into the business, advising on expansion, and

helping to win contracts. However businesses must be “investment ready” and NCap critically, is providing that service.

The NDA Estate currently spends just 11% of its budget directly with SMEs, but have a target to increase this to 20%. Paul and Ernie are confident that by working with the right companies, investing in the right technology and people, they can help the NDA reach this figure with a wider supply chain engaged and potentially reducing the overall costs to the taxpayer.

Of course this is not just about winning orders in the UK, or assisting with UK decommissioning; this is about preparing companies to win orders in a worldwide market estimated to be worth £930bn for new build, and £250bn for decommissioning by 2030.

Nuclear Capital Partners are intent on becoming the specialist backers of nuclear projects, working to strengthen the supply chain, and ensuring UK engineering flourishes here and overseas for decades to come.

For more information please go to: www.nuclearcapitalpartners.com

Paul Strzelecki, Joint Managing Partner

2013 | Summer — 25

All Energy 2013 26 — summer | 2013

by. Rupert Lewis

T

he Nuclear Industry Association exhibited at the UK’s largest renewable event - AllEnergy 2013. Held in Aberdeen on 22nd – 23rd May the annual conference attracted well in excess of a thousand delegates and exhibitors from across the world.

The event brought together all elements and sectors of the renewables and sustainable energy industries, including representation from the civil nuclear industry.

Scottish First Minister, Alex Salmond and Secretary of State, Edward Davey MP opened the event by emphasising the importance of a balanced energy mix to plug the UK’s looming energy gap, while combating dangerous climate change.

As one of a handful of nuclear industry representatives, the NIA’s exhibition stand was extremely busy throughout the conference. The recently launched Essential Guide was particularly popular amongst delegates keen to know more about the industry and the work that the NIA undertakes.

On the second day of the conference, a nuclear power session drew together a number of accomplished speakers from a breadth of the nuclear industry. Burges Salmon’s, Gareth Davies opened the meeting with an overview of the industry and the work the NIA does for its membership. Adrian Bull from the National Nuclear Laboratory spoke about the UK nuclear R&D programme and the potential impact of the governments recently published ‘nuclear industrial strategy’.

The session closed with a focus on international nuclear business opportunities and Robert Gunn, the acting Plant Director at Torness power station gave a presentation about the maintenance of Torness, the plants history and future prospects.

Fergus Ewing MSP Minister for Energy, Enterprise & Tourism

Get involved All-Energy provided a valuable opportunity for the NIA to engage with all low carbon technologies, and we would recommend as many of our members attend this free event as possible.

If you would like information about attending next years event you can find it at: www.all-energy.co.uk

Tweets from All Enery 2013

The UK is one of a few countries who offer capabilities across the whole nuclear fuel cycle Dr Juan Matthews, UKTI

@UKNNL have over 10,000 man-years of industry experience with world class facilities helping nationally and internationally Adrian Bull, NNL

Follow us: @NIAUK

UK nuclear sector is a buoyant and an important catalyst for economic recovery" Gareth Davies, NIA

Torness has avoided 130 million tonnes of CO2 emissions since 1988 - equivalent to removing all cars from UK roads for 2 years #allenergy @NIAUK

2013 | Summer — 27

NEW NIA MEMBERS

welcome

Aveva Solutions Ltd For more than four decades, Aveva has been providing the world’s power industry with best-in-class design, construction and asset management solutions for all types of nuclear and thermal generating facilities. Based on the most advanced engineering design and information management technologies, and proven in demanding global projects, Aveva solutions increasingly underpin the global growing energy supply.

Whether in meeting the energy needs of developing economies or supporting the creation, asset management and safe decommissioning of nuclear plants, Aveva’s field-proven solutions have an unrivalled track record.

Hitachi GE Nuclear Energy Ltd "Hitachi-GE Nuclear Energy, Ltd." was founded on July 1st, 2007 as a strategic global alliance by Hitachi, Ltd. and General Electric Co. (Its US counterpart is "GE Hitachi Nuclear Energy ").

Hitachi-GE Nuclear Energy, Ltd. offers world wide top quality services in nuclear power plant construction and maintenance in synergetic cooperation with GE Hitachi Nuclear Energy.

Barton Willmore Barton Willmore are non-technical and non-engineering consultants in the field of nuclear specialism. Their expertise is in assisting to drive the nuclear energy debate and subject through town planning and architectural design. Their practice encompasses experience of projects from the energy sector, generally comprising of gas, coal and energy from waste. They are also involved with many renewable energy schemes.

Informed Solutions Informed Solutions are an independent professional services and specialist IT solutions practice. They are specialists in helping the nuclear industry to solve the data, information and knowledge management challenges that underpin the effective mitigation of location based risks and liabilities, such as those relating to land quality management and land remediation.

They offer a fully integrated and complementary portfolio of impartial strategy and management consultancy, programme and project delivery, leading edge solutions and ongoing service management and support.

GGR Group Ltd GGR Group are the UK’s leading provider of UNIC mini spider cranes and compact battery powered cranes for the Nuclear industry. Small enough to fit through a doorway, GGR’s compact cranes can lift up to 25 tonnes and have proved to be invaluable for restricted access lifting in hazardous environments.

Matom Limited Matom Limited are expert providers of engineering and HAZMAT services to UK and overseas sectors, a tier 2 supplier of decommissioning and radiological protection services to the UK nuclear industry, and exclusively provide a proprietary surface and subsurface decontamination service to international markets. They collaborate through partnerships to provide service or turnkey solutions and specialist skills, presenting holistic and cost effective solutions to their customers’ needs.

find out more about benefits of NIA membership at niauk.org/ membershipinformation

Rusatom Overseas JSC Rusatom Overseas JSC, a subsidiary of the State Atomic Energy Corporation ROSATOM was founded in 2011 with the aim of promoting Russian nuclear technology to the global market. Rusatom Overseas acts as an integrator of ROSATOM's complex solutions in nuclear energy, manages the promotion of the integrated offer and the development of Russian nuclear business abroad, as well as working to create a worldwide network of ROSATOM marketing offices.

Tecnatom S.A. TECNATOM is an engineering company specialised in guaranteeing the operation and maintenance of nuclear power stations to the highest levels of safety.

The company's main activities centre on the licensing, design, development and testing of nuclear power stations, the training of personnel (Operation, Maintenance, Engineering, Managers, Leaders), the supply of I&C systems and full scope replica simulators, the rendering of component inspection and structural integrity services, and plant operating assistance engineering.

Nuclear recruitment

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Thomas Thor Associates BV Thomas Thor Associates are a recruitment and consulting organisation providing services to the global nuclear industry.

Their clients include nuclear regulators, operators, engineering companies, equipment manufacturers and research organisations. They operate internationally and their staff are multinational and multilingual, with a global network in the nuclear industry.

OPINION

PowerPolitics “…the public are realists, and confronted with the facts would accept the need for difficult decisions.”

Strike prices are still the key issue.

I forecast last time that these would be problematical given the sensitivity around electricity prices – and so it has proved. The politics are quite simple: if it is to avoid electoral damage any Government needs to demonstrate that it is the consumers’ interests that are closest to its heart, not those of the developers.

This means that, regardless of the reasonableness or otherwise of the Treasury, they need to show they have struck a fair bargain. And this meant there could be no early deal.

However the Hinkley negotiations have continued longer than even I expected, to the extent that - like all long running stories - they are no longer on the front page. Nonetheless I was confident, and remain confident, that the right balance will be reached, and that it can be sold to the public. As I said before, the public are realists, and confronted with the facts - not least the risk of blackouts – would accept the need for difficult decisions.

As I write we seem to be inching towards a conclusion. It is very important this happens soon, not only to allow the Hinkley project to proceed but to reenergise the nuclear programme. The reality is that despite all the work of the Government (and NIA) in strengthening supply chains (e.g. through the Nuclear Industrial Strategy) and publicising the opportunities for UK companies from a £60bn programme, industry have become impatient with the slower than expected progress.

They will only refocus and take the necessary investment decisions in new plant if a strike price agreement is reached.

Strike price apart there has been some very significant progress this quarter.

The financial enabler for new nuclear build – and indeed most other low carbon plant – is the Energy Bill. This has now completed its House of Commons stages and will now proceed to the House of Lords. Importantly the Bill passed its final Commons stage (Third Reading) with an overwhelming vote of 396 to 8, one of the biggest majorities the Coalition has seen, and a clear demonstration of continuing cross party support for the measures.

The Third Reading debate attracted major media interest, mostly around the decarbonisation amendment put down

by Tim Yeo the Energy and Climate Change Committee Chairman and the Labour MP Barry Gardiner. This amendment was designed to force the Secretary of State to set his first decarbonisation target in April 2014, rather than 2 years later in 2016 (and after the Climate Change Committee had delivered their recommendations of the UK’s 5th Carbon Budget) as previously agreed by the Coalition. The amendment was rejected. This was interpreted by the media as either a massive missed opportunity or a vote for reason, depending on the editorial line. The NIA’s view is that the early setting of a target might have been helpful in further building investor confidence, but the key point for us is that the Bill itself is progressing through the House. This is what matters.

In passing I should briefly mention that the Third Reading debate also included an anti-nuclear amendment proposed by the Green Party MP Caroline Lucas. This was rejected by 503 votes to 20, demonstrating

yet again that there is very little parliamentary opposition to nuclear power.

I thought I might end this column, given the heat and light it has generated over the past few months, with a reference to shale gas. There is no doubt that shale gas has been a game changer in the US – even though the current extremely low prices are unlikely to be sustainable - and in the light of that it is right to consider seriously the role it could play here.

With this in mind the Energy and Climate Change Committee recently undertook an inquiry into the issue. Their conclusion was that shale gas production in the UK could enhance the UK’s energy security, but that the extent of recoverable reserves is unknown and it is too early to say whether it will reduce energy prices.

They therefore warn it would be wrong for Government to base policy decisions at this stage on the assumption that gas prices will fall in the future.

We believe this is the right approach.

Talk is cheap and many supposed panaceas of the past have failed to deliver. It is too early to say whether this is the case with UK shale gas, but it would be taking an enormous risk to bank too heavily on this one energy source at this stage.

Peter Haslam Public Policy Adviser NIA peter.haslam@niauk.org

2013 | Summer — 29

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