Industry Link - September 2012

Nuclear energy helped make the London 2012 Olympics and Paralympics the greenest games ever, with 100% of the electricity EDF Energy supplied to the Olympic Park and venues backed by low carbon generation sources, of which 80% were nuclear and 20% renewable.

Magazine of the UK nuclear industry association Autumn / 2012

NIA.ORG

The Olympic Context Getting Up Close to the Nuclear Industry

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ÂŁ2 Hinkley Contract bn Awarded

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Wylfa Powers On

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Energy Choices 2012 Engine For Growth Thursday 6th December 2012 Central Hall, Westminster 2012 is shaping up to be a pivotal year for nuclear. The UK remains a world class destination to invest in new nuclear.

Energy Choices, now in its 12th year, is widely recognised as being the best nuclear event in the UK calendar.

Engine for Growth will showcase the many benefits that nuclear brings to the UK economy through current generation, new build and decommissioning.

High profile speakers will examine the key challenges and opportunities associated with delivering major infrastructure projects, maximising the potential for UK PLC and we will hear the latest news from Government and developers.

VISIT NIAUK.ORG CALL 020 7766 6648

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

Welcome to IndustryLink

Hendry announces new Energy Isl. funding SNAPSHOT

Welcome to our new look IndustryLink. In conjunction with our updated image you will find within this edition a broader range of stories written by member companies and the NIA team that cover the key topics facing the industry today; from the statutory footing of ONR to the Berkeley Boilers leaving site and Sheffield Forgemasters rejoining the NIA. The last few months have seen several significant advancements on the road to new nuclear build, from EDF Energy’s announcement of the preferred bidder for the civil works at Hinkley Point C, to Luc Oursel confirming to the Financial Times a joint Areva/China Guangdong Nuclear Power Corp bid for Horizon. Several further announcements are expected as we reach the year end.

Much has been written on the implications of nuclear new build to the domestic productivity of the UK and I take a look at three of these reports published recently and consider their implications. This edition also focuses on the NIA Twitter account (@NIAUK) which is continuing to expand rapidly as we gain a more prominent voice in the twittersphere!

We hope you enjoy reading this edition of IndustryLink and look forward to hearing your thoughts on our new look!

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VISIT NIAUK.ORG

Alastair Evans Alastair.Evans@niauk.org

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IN VIEW

Berkeley’s iconic boilers leave site MAIN FEATURE

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, Peter Haslam Keith Parker, Rupert Lewis Hannah Grimsley, Kirsty Alexander Matt Bryan – Nuclear Engineering Services, Andrew Munro – AMEC, Michael Freeman – Burges Salmon, Alastair MacDonald – Dounreay 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

TEL

Hannah.Grimsley@niauk.org 07894 595 717

TEL

Follow us: @NIAUK

OPINION

“ UK companies of all sizes are in a position to seize maximum benefit from the opportunities…”

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Cover image: Closing ceremony of London Olympics 2012 © Patrick Semansky

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

Transparency and Openness at the Heart of EDF Energy’s New Visitor Centres

“ We are expecting to attract between 7,500 and 10,000 visitors each year. The majority of these are expected to be school trips for children of 11 years and upwards”.

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Thousands of people will soon get an insider’s view of how their electricity is generated, as EDF Energy has now started the process of re-opening its visitor centres at its power stations.

Hunterston B, near West Kilbride, has become the first to open a Visitors’ Centre to the public. As well as offering guided tours of the operating site, the new Visitors’ Centre project aims to catch people’s imaginations and provide an introduction to the nuclear industry by using hands-on displays and interactive aides.

The new visitor centre was officially launched by EDF Energy’s Chief Executive Vincent de Rivaz and the Scottish Minister for Energy, Enterprise and Tourism, Fergus Ewing MSP. Vincent de Rivaz said: “We have said for some time now that openness and transparency has to be at the heart of everything we do in our nuclear and our retail business.

“We are already at the heart of the community in North Ayrshire. However, this gives us a great opportunity to

engage with more and more people and listen to what they have to say and answer any questions they may have about our station, our company and the nuclear industry as a whole.

“I am delighted that Hunterston B is the first of seven new visitor centres at all our plants in the UK. They will be an important part of our commitment to increase our engagement with the public.”

While Hunterston B has led the way, planning permission has already been granted to create a temporary visitor centre at Sizewell B in Suffolk and EDF Energy will be submitting planning applications for visitor centres – some new builds and some conversions of existing buildings – at all of its nuclear power stations over the next few months, with the aim of having all the facilities open around the end of the year.

At Sizewell B the plan is to use a temporary building for the next four years, until a permanent visitor centre can be built elsewhere on the site.

“We know there is the public interest in nuclear power generation, because of the weight of requests we receive from groups wanting to visit Sizewell B power station. This visitor centre will allow us to introduce people to our operation in a safe, informative and attractive environment,” said Jim Crawford, Sizewell B power station director.

“We are expecting to attract between 7,500 and 10,000 visitors each year.

The majority of these are expected to be school trips for children of 11 years and upwards. They will be given an introductory talk about how the station operates, before being given a guided tour of part of the plant.”

The Visitor Centre will be open from Monday to Friday, between 10:00am to 3:00pm. Additional opening on the weekends may be arranged for special events, such as station open days or VIP tours.

The majority of the tours will be organised for school/education groups, although members of the public will be able to attend by appointment.

2012 | Autumn — 3

IBERDROLA Appoint Jacobs to Act on Engineering Services Under the terms of the contract Jacobs will provide environmental consultancy and engineering support to the Engineering Consortium (EC).

They will provide support in the areas of site investigation, site characterisation, grid connection, preliminary construction services and any other general engineering. In addition they will collaborate with NuGen in the development of its new build nuclear power plant project in West Cumbria, United Kingdom.

NuGen, a consortium comprising IBERDROLA and GDF SUEZ, have acquired the option on land next to Sellafield from the UK’s Nuclear Decommissioning Authority.

The consortium has declared its intention to develop up to 3.6GWe of new nuclear power at the West Cumbria site of Moorside. The relationship between Jacobs and the EC will provide NuGen with the opportunity to draw on their experience in a wide range of relevant services, in support of its business objectives.

In making the announcement, Jacobs Group Vice President Bob Irvin said, “We are delighted to support NuGen and Engineering Consortia in the development of this major nuclear new build program in the UK.” Jacobs is one of the world’s largest and most diverse providers of technical, professional, and construction services.

Simon Carves

Creating Tomorrow... Today.™

Process Engineering is at the heart of everything we do www.simoncarveseng.com Simon House | Simonsway | Manchester M22 5PR

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

Everyone wants to know whether the economic case stacks up. Intense speculation surrounds the likely strike price, currently being negotiated by EDF Energy and the Government.

For more detail on the economics of nuclear power, check out our briefing paper: Financing the New Energy Mix at www.niauk.org/financing-the-new-energy-mix “Credible and independent analysis demonstrates that nuclear is the best value and most reliable form of low carbon generation and we expect to see this reflected in the strike price agreed when details are published later this year.” Keith Parker, NIA Chief Executive, Letter to the Times.

Putting some of the more outlandish claims to bed, EDF Energy’s Chief Executive, Vincent De Rivaz confirmed in an interview for the Daily Telegraph that the strike price for Hinkley C would be lower than £140/MWh, and competitive with other low carbon technologies. Negotiations are still underway with the Government but he insisted, “We will deliver.”

Keith Parker debated the economic case for nuclear with Roger Reynolds from Nomura, which is available to watch on the FT website. They reached a very sensible consensus that home grown nuclear is vital to avoid dependence on imported gas.

Another source of great excitement in the media is the pending sale of Horizon. Very little is known about the ongoing commercial negotiations, but AREVA have confirmed plans to make a joint bid for Horizon with China Guangdong Nuclear Power Corporation.

Interviewed in the Guardian about Chinese interest in the UK nuclear industry, Keith Parker, said it was “highly encouraging” that China wanted to invest in the UK. Keith was also interviewed by the Hong-Kong based station Phoenix TV. In other news, BBC’s Countryfile led with a story about the proposed Geological Disposal Facility in Cumbria. The programme focused on the local support for the scheme as well as outlining some of the potential risks. Also, the BBC also reported the news that Shepway District Council is examining whether a nuclear disposal facility, where waste is buried underground, could be built at Romney Marsh.

The Energy and Climate Change Committee has called on Government to use its AAA credit rating to keep costs down for consumers. It calls for transparency in negotiations on the strike price. Although critical of current EMR proposals, the report says they can be revised into a workable model.

The Olympic Context by. Keith Parker

One of the many remarkable achievements of the London 2012 Olympics has been the very successful delivery of the facilities to host and stage the Games along with the associated infrastructure. The Olympic Park was completed, on time and within budget in March 2011, more than a year before the Games began.

An estimated 46,000 construction workers were involved in its construction. As an indication of the massive scale of the project, around 800,000 tonnes of soil were moved during the excavation of the site for the main stadium alone. That would be enough to fill the Royal Albert Hall nine times.

Each one of the five projects that make up the UK’s planned nuclear new build programme is broadly equivalent to the Olympics in scale. EDF Energy estimate that the civils work for the Hinkley Point C project will involve sufficient steel reinforcement to build up to 9 HMS Illustrious aircraft carriers and enough left over to build 5 London Eyes; each nuclear island is the equivalent size of St Paul’s Cathedral; and enough concrete will be poured to fill Twickenham Rugby Stadium to roof level. At their peak each of the new build projects is likely to involve over 5,000 workers on site, and in total will create around 30,000 new jobs.

The challenges of building such massive and complex projects on time and within budget cannot be underestimated, but the nuclear industry is gearing up to ensure that the new build programme is delivered successfully. Lessons from the success of the Olympics are being studied. Establishing the right organisational structures and effective supply chain relationships from the earliest days are key success factors.

So too is creating a shared culture and commitment through learning, listening, and liaison with all stakeholders.

The nuclear new build programme will be a major driver of national economic growth and job creation as well as a critically important source of secure, low carbon electricity for decades to come. It is vital that the best practices that delivered the Olympics so successfully are also applied to achieving Britain’s nuclear ambitions.

NES Reach Project Milestone Five Months Ahead of Schedule Nuclear Engineering Services (NES) has achieved a significant milestone on the Silo Emptying Plant (SEP) Mobile Caves contract for Sellafield Ltd on behalf of the NDA. The second phase of delivery on the SEP 2 mobile cave contract has been completed five months ahead of the scheduled delivery date, a remarkable achievement for both NES and Sellafield Ltd. Scheduled for completion at the end of May, the project was handed over from the NES design and manufacturing team to commissioning personnel on the 30th March.

Phase two of the contract started in 2011 and was for the completion of the design and build on the SEP 2 mobile cave, destined for use at the Sellafield site. SEP 2 is the first of three mobile caves that will be used for the retrieval of Intermediate Level Wastes (ILW) from 22 vertical silos containing Magnox swarf and miscellaneous beta gamma wastes. Weighing approximately 400 tonnes each, and assembled from over 13,500 parts, each SEP mobile cave will remove wastes via a hydraulic grab and tooling system, through an import/export tunnel sited on top of the waste silos. Operating on a rail system, the SEP mobile caves will locate over the top of each silo and deploy the grabs and specialist tooling through a charge hole of around 1.8m.

Extracted wastes and miscellaneous items are then size reduced, if required, and placed into a waste skip for export and encapsulation at the Silo Direct Encapsulation Plant.

Simon Carves

Creating Tomorrow... Today.™

Nuclear energy helped make the London 2012 Olympics and Paralympics

the greenest games ever, with 100% of the electricity EDF Energy supplied to the Olympic Park and venues backed by low carbon generation sources, of which 80% were nuclear and 20% renewable.

Designing plants with PDMS for over 30 years www.simoncarveseng.com Simon House | Simonsway | Manchester M22 5PR

2012 | Autumn — 5

WORLD NEWS

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Atkins Builds on Saudi Arabia Expansion Atkins has bolstered its energy business in the Middle East region with the appointment of Richard Hagger as Head of Nuclear for Saudi Arabia.

Richard joins from Westinghouse Electric Company where he was Customer Project Manager for over three years, servicing Taiwan and Korea’s nuclear customers. He will be based in Atkins’ new office in Al Khobar which opened earlier this year to accommodate Atkins’ growing regional energy business.

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Babcock Extends Decommissioning Expertise to France Babcock, the UK’s largest specialist nuclear support services organisation known for its full life-cycle service including extensive decommissioning experience, is extending its expertise to France, in particular to assist with the nuclear decommissioning programme there via its recently established office in Lyon.

From this office Babcock is working with EDF’s nuclear decommissioning and environmental division, CIDEN

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(Centre d’Ingénierie de Déconstruction et Environement), which is headquartered in the city.

It is also engaging with the French supply chain, with subcontracts placed for specific tasks with two French engineering companies.

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AREVA and EDF Organise a Joint Supplier Day to Support Nuclear New-Build Projects Following the success of AREVA’s previous ‘Polish Supplier Days’ held in Warsaw last October and in Wroclaw and Opole in March, AREVA and EDF organised, with the support of the ‘Association for the Construction of Nuclear Power Plant in Pomerania Region’, their first joint regional Supplier Day in Gdan´sk, the capital of the Pomerania region.

The event built on the success of the series of supplier days AREVA already conducted in the U.S., Finland, Czech Republic, and the UK to continuously develop its European and international supply chain to ensure competitive, on-time and on-budget delivery of ongoing and future EPR projects worldwide.

The NIA website will keep you up-to date on all future events.

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Finnish and British Resource Management Companies Forge Alliance in Advance of UK Nuclear New Build NRL Group of Cumbria and Enersense International of Finland, have formed the alliance ‘Enerel’, with the aim of providing an unparalleled service to the UK’s nuclear new build programme.

NRL Group Ltd is primarily a recruitment business which also offers management, logistics, training and other support services to UK industry.

Enersense International has had a significant presence at the Olkiluoto nuclear construction site in Western Finland since 2004 and sources skills and resources from across Europe.

Thanks to Enersense's advanced HR software and consultancy services, the company has become highly regarded in Scandinavia and beyond; with over £9m of revenue generated from new-build projects in the last financial year. Work is being undertaken to enable clients to ramp up their new nuclear-focused teams, so that new-build expertise is at the heart of their implementation programmes.

The two companies having formalised the arrangement last year have now moved into a shared premises in London thus consolidating the Enerel alliance.

How the Supply Chain is Bridging Any Potential Skills Shortfalls?

Recruitment, Investment and Supply Chain Development

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t a time when the capacity to deliver nuclear contracts to meet the requirements of the UK decommissioning programme is crucial, without even considering the impact on supply chain resources of the new build programme, Matt Bryan – from NES – provides us with an insight as to how NES are ensuring they are well prepared for the future.

The key issue is not identifying any potential gap of skills and limited number of credible suppliers, but deciding on how to address it. Simplistically, recruiting more engineers would be the obvious approach but it is common knowledge that there is not only an industry wide shortage of skilled nuclear engineers, but a skills gap in trained engineers generally, with desirable resources constantly moving between different market sectors and organisations.

NES realise that one approach to addressing the shortage might temporarily bridge the gap but, in order to meet the long term market demands, the challenge must be addressed by a multi-faceted approach focusing on development, recruitment, investment and supply chain development.

Development and Recruitment With an estimated reduction of around 8% of registered engineers and technicians between 1997 and 2006, the market for skilled, experienced technicians is becoming ever more competitive. NES has operated in the strictly regulated nuclear environment for many years and benefits from a strong core of Suitably Qualified and Experienced Persons (SQEP) across the company’s three sites, all fully conversant with the requirements of the nuclear market. To supplement this core group of around 120 engineers, NES has looked outside of the nuclear industry to similar high integrity industries where skills can be transferred and applied to the nuclear market.

Where engineers have become available from aerospace, defence and automotive industries, NES has looked to transfer the skill sets required from each of these markets to the nuclear industry.

Although engineers cannot be pigeonholed into categories based on their industry experience, it is important to utilise inherent skills from other industries and apply them to the nuclear market. For example, engineers from the automotive

2012 | Autumn — 7

industry have a strong background in detail design for manufacturing skills, ideally suited for design process review.

New engineers should be placed into the existing engineering teams where their core engineering skills are supported by the nuclear experience of the existing engineers. The knowledge retained by the experienced engineers is transferred through on the job training and the involvement of those with less nuclear experience in design reviews, technical engineering decision making and design gates.

In order to achieve the nuclear “know how” required – which can only be built through long term development – these new engineers should be set achievable short term targets. Starting off with these short term targets develops their existing skills in a specific area, best suited to their experience. This can then be developed across the department allowing individuals to gain experience in multiple disciplines through exposure to other areas within their role. Once the engineers have received the necessary exposure to other disciplines within the engineering function, roles can be expanded to suit the changing requirements of the business.

In addition to building a team of experienced engineers through outside industry recruitment, NES has also taken the approach of building a long term engineering team through the

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recruitment of graduate engineers.

The development of an Institute of Mechanical Engineering (IMechE) accredited graduate scheme has allowed NES to recruit a greater number of graduates into a structured programme where experience and exposure to the nuclear industry is managed throughout their career development.

Graduates work alongside mentors, gaining valuable on the job experience whilst developing engineering competencies to achieve the Chartered Engineering status. Graduate schemes should be at the heart of any business looking to encourage the next generation of engineers.

Investment The government’s announcement of the new build programme in 2008 recognised the requirement for industry to expand the range of capabilities offered to cover areas where experienced nuclear suppliers could no longer be found. Through timely investment and recruitment many companies have already made the step to ensure they are in a strong position to win competitive tenders when the numerous contracts begin to be issued.

Supply Chain Development Organisations such as the Nuclear Advanced Manufacturing Research Centre in Sheffield (Nuclear AMRC)

have been established to work with their members to develop world-leading processes and technologies, helping British manufacturing companies compete for nuclear contracts not only in the UK, but worldwide.

Coupled with this it is essential that companies form a robust supply chain versed with the quality, safety and sustainability requirements of the nuclear market to ensure success in the industry.

NES is only one example of how a supplier can look to bridge any potential skills shortfall in the supply chain.

With an estimated 5,000 skilled workers required to complete the build of each new nuclear power plant, without even considering the number of workers required downstream in the supply chain, the challenge requires both a massive investment and skills shift within the UK’s skills base.

Matt Bryan Nuclear Engineering Services matthew.bryan@ nes-limited.com

NIA Leading UK Supply Chain Support to Japanese Clean-up

Andrew Munro (Chairman, NIA Decommissioning Group) and Peter Haslam (NIA Public Policy Adviser) explain how the NIA has been working over the past few months in partnership with UK Trade & Investment (UKTI), the British Embassy in Tokyo, and the NDA, to build the credibility of the UK as a respected partner to Japan in the on-going clean-up mission, and help showcase the capabilities of UK companies to Japanese industry.

As a result of the Great Tohoku earthquake and tsunami on 11th March 2011, over 15,000 people died and 3,000 people are still officially missing, presumed dead. The subsequent accident at the Fukushima Dai-ichi nuclear power plant resulted in significant amounts of radioactive materials being released to the environment. Although major health impacts were avoided, some 80,000 residents were moved from the area, with 500 square miles of contaminated land evacuated and needing to be cleaned-up. Today, the damaged reactors have been brought into a stable condition (“cold shutdown”), but it is anticipated that it will take up to 40 years to decommission these structures.

Countries around the world have been rallying to support, including the UK. By virtue of being one of the earliest

countries to develop civil nuclear power we have become a world leader in decommissioning, and have acquired a wealth of experience. Much of this, particularly our experience in dealing with difficult and unforeseen issues, could be very relevant to the problems being encountered by our Japanese colleagues. We have therefore been proactive in offering a measured and appropriate response to Japan; attempting to demonstrate how projects which are comparable to small elements of this clean-up mission have been completed at UK sites, and carried out by UK companies working on some of the most challenging international nuclear decommissioning projects around the world.

Andrew and Peter explained: “Key technical issues facing TEPCO [the site operator] and the Japanese Government include on and off-site decontamination, contaminated water treatment, retrieval of spent fuel from ponds, retrieval of fuel debris from the reactor core, and the dismantling of reactor facilities. Many companies in the UK have extensive experience in these areas, and the NIA simply want to ensure that our Japanese colleagues and friends have full sight of these capabilities when choosing the most appropriate approach for each area.”

Further information Reports on what happened and the current status at Fukushima are available on the Energy Generation and Supply Knowledge Transfer Network website: Major UK trade mission to Japan In November 2012 UKTI are planning an export mission to Japan to enable UK companies to profile technologies and services. If your company would like to register an interest in participating please contact: Keith Franklin, 1st Secretary (Nuclear) UK Trade & Investment, British Embassy, Tokyo TEL +81 3 5211 1358 EMAIL keith.franklin@fco.gov.uk

https://connect.innovateuk.org/ web/nuclear The NIA will issue further updates to members on opportunities for UK companies to support Japan, as they become available.

2011 OCTOBER UK-Japan “Beyond Cold Shutdown” Symposium (Tokyo)

2012 FEBRUARY UK-Japan Government energy dialogue (London)

MARCH UK attendance at an International Fukushima Symposium (Tokyo) Response by UK companies to a call from the Japanese Ministry of Economy Trade and Industry to provide R&D catalogue details for on- and off-site clean-up

APRIL British Prime Minister’s Far East business delegation and nuclear summit (Tokyo), where a framework on UK / Japan cooperation in civil nuclear power was agreed Signing of memorandum of understanding between the NIA and the Japan Atomic Industry Forum (JAIF) NDA / Site Licence Companies / NIA delegation and conference with TEPCO (Tokyo) NIA attendance at the JAIF Annual Conference (Tokyo)

JUNE NDA executive visit to Japan (Tokyo)

OCTOBER Annual Government level nuclear dialogue (Tokyo) UK R&D delegation to Japan (Tokyo)

2012 | Autumn — 9

Getting Up Close to the Nuclear Industry by. Rupert Lewis

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n a first of its kind for the nuclear industry, URENCO have launched a virtual tour designed to replicate one of their enrichment facilities. The ‘URENCO Xperience’ takes users through all seven stages of the enrichment process educating its viewers through a mixture of modern graphics and interesting text.

The tour, which was set up to give a realistic insight into URENCO’s operations for those members of the public who aren’t able to pay a visit to one of their enrichment facilities, has been an enormous success. The guide has also been a crucial part of the company’s initiative to provide more transparency across the industry in response to the unfortunate events in Japan last year.

The programme begins with a short timeline portrayed on a sundial of URENCO’s life from the first board meeting in 1971, through to the start of production in Germany and finally, the present day where the company has facilities in the UK, the Netherlands, Germany and the USA fulfilling a 29% share of the global enrichment market.

Users are then guided into the reception where there is an opportunity to learn some of the facts about nuclear energy and some short mission statements about URENCO’s various initiatives and values. Then the tour begins…

Directed from reception into the control room you are faced with seven different doors that outline the various stages of the enrichment process from the initial heating of the Uranium, via the checking of the assay, to the transportation of the final product, the enriched Uranium.

The step-by-step guide takes you effortlessly through these different stages at a gathered pace with clear and concise text used to describe the series of events which take place in the enrichment process. A number of captions and insights into the hot boxes and centrifuges’ give viewers both a detailed and unique experience with unrivalled virtual access into one of the most important stages in the nuclear fuel cycle.

The tour is a brilliant insight right in the heart of the facility and takes us to a place where for many it is neither feasible nor practical to explore and as a result it comes highly recommended!

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The seven minute video tour is now available to stream direct from the internet or alternatively you can download the fully interactive version from the website at urenco.com

2012 | Autumn — 11

Charles Hendry Reasserts Government Commitment to Nuclear Power

Hayes Replaces Hendry as Energy Minister It has been announced that Mr John Hayes MP will serve as Minister of State at the Department for Energy and Climate Change. Mr Hayes brings with him a wealth of experience from his time as Skills Minister in the Department for Business Innovation and Skills. This knowledge will be invaluable in work to support the nuclear supply chain up and down the country.

Responding to the news that John Hayes MP will replace Charles Hendry MP as Energy Minister at the Department for Energy and Climate Change, Nuclear Industry Association Keith Parker said: “Charles made a huge contribution to his energy portfolio and will be greatly missed across the sector.

His grasp of detail, and straightforward, pragmatic style inspired confidence in a policy area undergoing significant change. Good progress has been made under his watch to bring forward much needed electricity market reform.

We look forward to working with John Hayes towards the speedy implementation of the reforms that will provide investor confidence and long term price stability for the low carbon energy sector.”

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The NI hosted their annual north-west dinner in May which attracted over 750 diners from over 50 nuclear establishments. They were addressed by the then Energy Minister Charles Hendry MP. Charles began his speech by acknowledging the important contribution that the North West has made to the UK nuclear industry since the 1950s and the importance of the nuclear industry to the economic prosperity of the area as a whole.

He reiterated the Government’s commitment to nuclear power, and the important role it must play as part of a balanced energy mix alongside other low carbon generators.

The decision by E.ON & RWE to withdraw from their joint venture Horizon was explained clearly and succinctly by Charles as a purely financial decision, resulting from pressures elsewhere in their business, and not in any way a reflection on the UK, which remains one of the best places in Europe for new nuclear. The two Horizon sites at Wylfa and Oldbury represent an extremely attractive investment and opportunity and it is testament to this that discussions are ongoing with potential buyers.

On market conditions Charles was clear, stating “It is important that we provide these consortia, and other investors, with the certainty they need to invest in new nuclear. This Government remains committed to ensuring that the conditions are right for investment. We have completed all of our facilitative actions and set out a package of reforms to transform the power sector so that we can achieve secure, low carbon and affordable energy.” The market reform was announced in the Queens Speech on 9th May, and followed up by the publication of the draft Energy Bill on 22nd May. These measures will give investors the certainty needed to make the significant decisions that are ahead.

An increase in UK jobs and an expanding manufacturing sector were highlighted as central planks of the coalition Government and Charles commented “…UK companies of all sizes are in a position to seize maximum benefit from the opportunities presented by new nuclear and to use this experience to springboard into other markets given our position at the vanguard of new nuclear programmes.”

SNAPSHOT

Government Announces New Energy Island Funding…

DECC announced a new £480,000 NDA funding package for the Anglesey Energy Island Programme (EIP) during a visit to the island in June.

The former Energy Minister, Charles Hendry explained to members of staff from Wylfa power station and a collection of students from the Energy Centre at Coleg Menai that the nuclear industry has a bright future on the Welsh Island, further reinforcing the Government’s commitment to new nuclear in the UK. The funding will allow the local Council and its partners to push ahead with the programme as well as improve the quality of life and prosperity on the Isle of Anglesey and the rest of North West Wales. Charles Hendry commented, “with its rich history in the nuclear industry, a skilled workforce and a motivated and enthusiastic local community, Anglesey can help power the UK for decades to come. The new

funding I am announcing today will enable the Council to invest in education, skills, and infrastructure, and boost the local economy.”

Anglesey County Council Leader, Bryan Owen, explained, “I’m delighted to hear about the new NDA funding which will allow us to develop a number of key EIP work streams – including education and skills; inward investment and supply chain opportunities; and strategic infrastructure to create lasting community benefits.”

NDA Director of Stakeholder Relations, Jon Phillips, added: “The Energy Island Programme has delivered excellent progress over the past three years and we are delighted to maintain our support with this latest grant, which we hope will make an important contribution to unlocking future economic activity and to building a sustainable future for Anglesey and

the wider North West Wales region.”

Since 2005, the NDA has committed more than £5 million in socio-economic support in Anglesey and Meironnydd, including a total of £1.5 million towards the construction of the Energy Centre at Coleg Menai in Llangefni. Coleg Menai is the further education college based in Anglesey and Gwynedd. In 2011, it opened a £6 million Energy Centre at its Llangefni campus; equipped with industry-standard resources to enable the development of a highly skilled, specialised workforce, readily available to take advantage of the coming developments in the low carbon energy sector.

The Anglesey Energy Island Programme is a collective initiative between public and private-sector stakeholders to help put Anglesey at the forefront of energy research and development, production and servicing, bringing with it potentially huge.

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Insight onsite.™

2012 | Autumn — 13

“It was upbeat with a definite buzz in the air as we looked forward together to an exciting future of challenges and opportunities” Mark Drulia EnergySolutions

“ At the NIA’s Summer Reception Lord Hutton gave a positive speech about the exciting era for nuclear particularly in regard to the UK New Nuclear Build Programme which is gathering pace. We at Flowserve welcome these opportunities to network with NIA colleagues and other nuclear industry delegates, sharing ideas and information on how we in the UK can present our long experience, expertise and proven and trusted products to support and deliver both locally and globally.”

Simon Carter Flowserve Flow Control

14 — Autumn | 2012

NIA Summer Reception

Lord Hutton, pictured below, addressed the NIA’s annual summer reception, emphasising the importance of the next 12 months for the nuclear industry. He also highlighted the fantastic achievements that have been made across the sector in the last year and thanked the guests for their continued hard work.

The reception was held at the RAC Club in London on Wednesday 13th June. The great event brought together industry, members of both Houses of Parliament, local Government representatives, individuals from N.I.C.E. (Nuclear Information Committee Europe), and a French delegation attending a two-day Franco-British nuclear conference.

2012 | Autumn — 15

EDF Energy Announce Anglo-French Consortium as Preferred Bidder for £2bn Hinkley Contract

An artist’s impression of the Hinkley Point C site – a look to the future.

H

ours after Lord Hutton spoke about the importance of the next 12 months for the UK’s new build plans at the NIA’s Summer Reception, EDF Energy named the Bouygues TP and Laing O’Rourke joint venture as the preferred bidder for a £2bn civil engineering contract for the proposed new nuclear site at Hinkley Point C in Somerset.

The contract, which further cements EDF Energy’s commitment to new nuclear in the UK, will initially create an estimated 4,000 jobs of which 3,000 or so will be from the local supply chain. The work, which is subject to planning consent and EDF Energy taking its final investment decision later this year, involves the construction of the main civil engineering work for the nuclear island, the conventional island and supporting structures.

Prior to the signing of the contract, the Anglo-French joint venture entered into a preliminary agreement which will see both companies working together on the development of the detailed design, construction methodology and programme up until EDF Energy’s final investment decision.

This process will allow the partners to identify potential issues at an early stage, and ensure that the correct people are in place at the beginning of the process to guarantee that Hinkley Point C is fully prepared for construction. Over the course of the project a number of other contracts are to

16 — Autumn | 2012

be awarded which will create up to 25,000 jobs, including an estimated 400 apprenticeships for the civil engineering work.

As a result of the project, EDF Energy say that they expect further apprenticeships and skills development opportunities in other parts of the scheme and they are already working together with local colleges, future employers and Trade Unions to ensure the long term up-skilling of local and wider supply chains.

EDF Energy stressed that the announcement was a “critical step” in its plans to build the first new nuclear reactor in the UK for almost 20 years which will help provide enough low carbon electricity to power 5 million homes.

Vincent De Rivaz, EDF Energy’s Chief Executive insisted that “2012 is a defining year for new nuclear” and that EDF are “determined” to secure government consent for the project.

He continued, “The agreements announced today show we are continuing to maintain momentum in 2012 towards our final investment decision. We will work with the Bouygues TP/Laing O’Rourke Joint Venture over the next few months to ensure we are in the best possible position to begin work on site once the investment framework and permissions are in place.”

“This was a close, very competitive tender which attracted some high quality and robustly-costed bids. We look forward to harnessing the relevant and complementary experience, expertise and knowledge offered by this powerful partnership

of two well-respected and highly-committed construction companies.”

“So much has been achieved on site already and we now have a strong partner in the Bouygues TP/Laing O’Rourke Joint Venture to help to plan the next phase of works. For us, early engagement with key contractors is critical to ensure that they are clear on their responsibilities and the expectations we have of them.”

Chairman and Chief Executive of Laing O’Rourke, Ray O’Rourke, said he was “delighted… to lead the development of the first new nuclear power station, which is vital to meet the UK’s future energy demands and support the wider economic recovery.”

Philippe Bonnave, Deputy CEO of Bouygues Construction, said he was “proud” and explained that the “project confirms the mutual confidence that exists between EDF Energy, Laing O’Rourke and Bouygues Construction.”

Energy and Climate Change, Secretary of State, Edward Davey commented, “I want to see new nuclear come forward as part of our future energy mix and for the UK to be a leading global destination for investment in new build.

The announcement by EDF Energy of a preferred bidder for their multi-billion pound construction contract for Hinkley Point is clear evidence of their commitment to nuclear in the UK.”

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AD0058 Nuclear 86x121 NIA Industry Link:Layout 1

AD0058 May 12

2012 | Autumn — 17

© Magnox Limited — www.magnoxsites.com

IN VIEW

Continued Generation for Wylfa’s Reactor 1 Following several independent reviews, Wylfa Power Station has been given the go-ahead to transfer fuel between its reactors, enabling electricity generation to continue until September 2014, almost four years beyond its original closure date.

The additional income from Wylfa and Oldbury, which closed in February also generating electricity for four years longer than originally scheduled, is so far estimated to be worth around £600 million.

‘On any given day, Wylfa generates in excess of 400MW – enough to power a city the size of Manchester’.

2012 | Autumn — 19

The Twittersphere

Business, Academics and Thinktanks, Making the Case

In the fast-paced, often witty world of Twitter, you can be news one minute and nothing the next. It is a world where the serious mixes with the funny and the just plain baffling; where a (very long) list of gaffes made by US election candidate Mitt Romney can become a trending topic – #romneyshambles; and where pictures of our esteemed London Mayor Boris Johnson hanging mid-air waving Union Jacks spread like wildfire. But where does #nuclear fit in to all of this?

Actually, everywhere. Well everywhere may be a slight exaggeration, but so many topics are relevant to the nuclear industry in particular and the energy industry as a whole – whether people are talking about jobs and growth, climate change or report publications.

Because that is the good thing about Twitter – it is an excellent news source and a convenient and timely way to contribute to the debate of the day.

This column will feature in the new look IndustryLink to draw your attention to key conversations, relevant trending topics and new people to follow. The aim here will be to provide a summary, but the best way will always be to Who to follow? have a look yourself.

Want information on nuclear The big news everywhere and other relevant topics? in recent months, Twitter This issue we recommend included, has been the you follow: #Olympics. If you wanted updates on this @edfenergy was the place to look – their @edfenergy #Energy2012 campaign on @NDAgovuk Twitter was a really useful @NRGClimatetalks tool to keep track of all @mark_lynas goings on. @NIAUK will be using the #engineforgrowth hashtag to pinpoint conversations and facts relating to nuclear energy’s potential as a major growth sector in the economy, so look out for these and feel free to join in.

Also, keep an eye out for our weekly blog posts – we’ll point you towards them on Twitter.

by. Alastair Evans

Twitter Count

@NIAUK

Followers: 760 Tweets: 302

@vincecable #AFI2012 – Couldn’t agree more, manufacturing = vital to UK econ. And think what new #nuclear will bring #engineforgrowth

20 — Autumn | 2012

We are fast closing in on the final investment decision from the consortium of EDF Energy & Centrica on their plans to build two reactors at Hinkley Point. As the new build story continues we have seen a glut of reports highlighting the social and economic benefits of this major infrastructure project.

IPPR put out a report sponsored by EDF entitled Benefits from infrastructure investment: A case study in nuclear energy. Only a week later the Institute of Directors published the second report in its Infrastructure for Business series: ‘Britain’s Nuclear Future’, which makes the case for nuclear energy as a clean, cheap and safe way to meet our energy needs. This was swiftly followed by the Birmingham Policy Commission who published The Future of Nuclear Energy in the UK. With think tanks, academics and the voice of business looking at the positive impact of a new build programme we will take a look at some of their key findings and recommendations.

The Institute for Public Policy Research is one of the UK’s leading progressive think tanks. Their team was led by Will Straw, a specialist in Globalisation and Climate Change.

Will and his team focused on the economic benefits of new build, and the positive impact on UK GDP concluding the substantial investment needed to take us to 18GW of nuclear capacity would boost UK GDP by 0.34% a year – equivalent to £5.1 billion in 2011 – over 15 years. The report also highlights the potential export boom that could come from home investment, with projections of an annual export increase from £700 million per annum to £1.1 – £1.6 billion.

Employment forms an integral part of the new build process and DECC believes that 30,000 jobs can be created through a 16GW programme. The IPPR report makes clear that the proportion of these jobs that go to domestic workers will depend on two elements: the capacity and capability of the UK workforce to do the work, and the ability of UK firms to win the contracts. However EDF Energy and AREVA have both stated their desire to provide jobs for UK companies when building BENEFITS FROM new nuclear capacity INFRASTRUCTURE INVESTMENT: in the UK, and the NIA A CASE STUDY IN continues to work hard NUCLEAR ENERGY to ensure companies JUNE 2012 are prepared and well informed of the requirements for participating in new nuclear build.

The IoD take as their starting point the increasing energy gap resulting from ageing coal and nuclear power stations AN IPPR TRADING LTD REPORT FOR EDF ENERGY

which are scheduled to shut in the coming years. The IoD assert Infrastructure for Business that “although shale gas looks very promising, Britain’s Nuclear gas and renewables may Future not be sufficient to fill [the energy gap].” IoD members are therefore strongly in favour of a new nuclear programme for Britain. The NIA agrees that nuclear power is essential as part of a balanced energy mix in a low carbon environment in order to meet this possible energy shortfall.

The IoD second report confidently concludes that nuclear is ‘clean, cheap, safe and popular with business’.

This report uses a number of other publications produced by government and the NIA to substantiate their points.

Of particular interest is one taken from the Parliamentary Office of Science and Technology, Carbon Footprint of Electricity Generation, June 2011; “University of Manchester estimate a footprint of 6.4gCo2eq/kWh for a new build plant”. This compares with 488gCo2eq/kWh for gas and up to 990gCo2eq/kWh for coal. The UK must meet its carbon reduction targets and nuclear will play a key role in ensuring we do this by 2050.

Prior to the release of the report the IoD commissioned polling with a survey of 1,117 IoD members. This found that 84% were in favour of new plants being built in the UK. This huge majority from business, as well as cross-party parliamentary support, coupled with the highest ever levels of public support – four out of five people support new build as part of the energy mix – should give confidence that nuclear has significant support.

The final report from recent weeks was published by the Birmingham Policy Commission, a group of leading figures THE FUTURE OF NUCLEAR ENERGY IN THE UK from the public, private Birmingham Policy Commission and the charitable The Report July 2012 sectors, together with Birmingham University

academics. The stated aim of the Commission is to generate new thinking on contemporary issues of global, national and civic concern.

The Policy Commission begin by questioning whether enough is being done and at a sufficient pace to fill a UK energy gap. The hurdles they identify range from economic considerations and past failures to public perception.

The report is critical of the length of time it has taken to agree the market mechanisms that will support an economic climate in which utilities are confident about bringing forward plans to build new power stations. They go on to state “further delays in its drafting and implementation could have far-reaching consequences.” It is essential that legislation is passed in a timely manner to give certainty to investors and help meet any potential UK energy gap.

UK research and development is criticised heavily, but the Government have committed to forming a long-term strategy for nuclear up to and beyond 2050. This focus on R&D is, we believe, an essential step to revitalising an ageing workforce by promoting nuclear sciences to STEM researchers widening the pool of knowledge significantly.

Each of these reports touches on the positive impact that nuclear will make in keeping the lights on, but all three to some extent highlight the importance of the base load energy that is essential to energy intensive industries.

It should be remembered that nuclear contributes not just to keeping lights on at home, but also to powering UK manufacturing – one of the many reasons that business continues to back new nuclear.

These reports are in agreement that nuclear energy is essential to meet Britain’s future clean energy needs and they greatly add to the welcome debate on how we meet our 2050 carbon reduction commitments.

The NIA released a report in 2006 analysing the capability and capacity of the UK workforce to contribute to the new build programme. This was updated two years later and THE UK CAPABILITY TO we are pleased to announce DELIVER A NEW NUCLEAR BUILD PROGRAMME that a 2012 edition will be DELIVERING A NUCLEAR FUTURE FOR THE UK published in the Autumn.

The report will make a number of recommendations to government and industry on ways to support UK LAUNCHING engineering and construction SOON! companies to ensure they are in the strongest possible position to bid for the numerous competitive contracts that will come from a fleet of new build.

2012 | Autumn — 21

Berkeley’s iconic boilers

Legacy waste removed 62 years earlier than planned

22 — Autumn | 2012

leave site

M

agnox has successfully removed five iconic heat exchangers (boilers) from the former Berkeley nuclear power station site as part of an £8m contract with Low Level Waste Repository Ltd (LLWR) and Studsvik.

Steve McNally, Berkeley Site Director said: “The removal of these boilers is a huge skyline change for the site and is a great achievement for team Berkeley and importantly our customer, the Nuclear Decommissioning Authority (NDA).

Working closely with LLWR and Studsvik, we have managed to remove legacy waste from the site 62 years earlier than planned instead of leaving it for future generations to manage. This project also has great environmental credentials, as the majority of the metal will be free-released into the market place for reuse.”

After a competitive tendering process LLWR appointed Studsvik as the main contractor for the removal, transport and treatment of the boilers in Sweden – where they will be recycled.

Magnox made the decision to work with LLWR during the initial feasibility stage of the project, which was being led by the Magnox graduates, to help identify suitable waste routes and treatment technologies as early as possible.

In order to decide how best to proceed with the boilers, Magnox set out key project criteria; →→ Environmental impact →→ How proven the technology was →→ Cost →→ Public acceptability →→ Transport →→ Secondary waste generated – liquid, gaseous

and solid

→→ Timescales to implement

Once all the options had been assessed, the decision was made to transport the boilers off site whole to a purpose designed facility to conduct the treatment.

Studsvik appointed global heavy lift and transport company ALE to remove the boilers from the Nuclear Decommissioning Authority owned site.

ALE successfully jacked, skidded and loaded five of the redundant boilers weighing 300te each, measuring 22m long, and 5m wide into three transport loads. →→ Minimised the amount of secondary waste

generated

→→ Did not require a specifically designed size

reduction facility to be built on site

→→ Did not require Magnox to recruit additional

staff to manage

→→ Minimised interfaces and conflicts with

other critical projects such as ILW retrieval

→→ Met required time-scales →→ Used the supply chain to deliver proven solutions

The boilers were transported four miles through Berkeley town centre to Sharpness docks, where they were rolled onto a specialist vessel which transported them via the river Severn to Avonmouth. From Avonmouth the boilers were transported on a ship to Studsvik’s specialist treatment facility in Nyköping Sweden.

The boilers arrived safely and on schedule at Studsvik’s deep water harbour at its own nuclear licensed site in Sweden, where they were offloaded and four placed in storage, with the first boiler moved direct to the treatment facility. Well over 90% of the metal will now be recycled, with the remaining secondary waste being sent back to the UK for safe disposal at LLWR in Cumbria.

Dennis Thompson, Managing Director of LLWR added: “I am particularly delighted with the successful shipment of boilers from the Berkeley site because it demonstrates what we can do when we put our mind to working collaboratively across the NDA Estate. Obviously, I am proud of the LLWR employees who have shown so much ownership and have put a lot of effort into ensuring successful execution. I am equally impressed with the effort of the folks at Berkeley and the Studsvik team who have come together to form one cohesive, high performance project team.”

Ten boilers remain on the site and Magnox is currently working with the supply chain to look at options for further removals.

2012 | Autumn — 23

T

he nuclear industry has taken stock by conducting safety reviews across the globe, many of which, including the report published by the UK’s Chief Nuclear Inspector, emphasised the importance of having domestic nuclear regulators that are independent of Government and industry in their decision-making, transparent in their regulatory conduct, and fully accountable.

The UK Government has been committed to achieving these objectives for some time, not only to ensure that the hazards of the industry are addressed and regulated in the most effective way possible, but also to ensure that the UK is viewed internationally as one of the most attractive places for investment in new nuclear.

On 22 May 2012, the Department of Energy and Climate Change (DECC) published its long-anticipated draft Energy Bill 2012. The draft Bill enshrines many of the Department’s flagship energy policies which are relevant to the civil nuclear sector, for example contracts for difference, but one of the most interesting aspects of the draft Bill is that it seeks to establish, for the first time, a dedicated nuclear regulator which has its legal basis in primary legislation – the Office for Nuclear Regulation (ONR).

This article examines some of DECC’s proposals set out in the draft Energy Bill 2012 which relate to the creation of the ONR.

by. Michael Freeman ⁄ Burges Salmon

CURRENT ARRANGEMENTS The current legal arrangement in the UK is that the Nuclear Directorate (ND) of the Health and Safety Executive (HSE) regulates most aspects of the civil nuclear industry. The HSE was established by the Health and Safety at Work Act 1974 and is a statutory body which has legal responsibility for enforcing health and safety legislation in the UK. As a result, it sits apart from Government and industry and is therefore fully independent in its role as nuclear regulator. There are, however, inherent concerns with the HSE’s accountability and transparency in its regulation of the nuclear sector – concerns which have arisen purely as a result of the legal framework within which it operates.

As a result of numerous regulatory consolidations since 2007, notably the incorporation of the Office for Civil Nuclear Security (OCNS), the UK Nuclear Safeguards Office and the Radioactive Materials Transport Team (RMTT) within the HSE, the HSE currently carries out certain statutory functions on behalf of the Secretary of State rather than in its own right as regulator. An example of this can be seen in the HSE’s regulation of security aspects of UK civil nuclear sites on behalf of the Secretary of State for Energy and Climate Change, who retains

Statutory Footing for the Office for Nuclear Regulation 24 — Autumn | 2012

ultimate legal responsibility for such regulation under the Nuclear Industries Security Regulations 2003. While this legal arrangement has been largely successful from a practical point of view over several years, it is not necessarily the most desirable legal framework for ensuring regulatory accountability.

An interim ONR was, of course, set up in April 2011 to address these concerns, although it was only established as a non-statutory agency of the HSE without legal personality and the right to perform regulatory functions in its own right. It was, therefore, only a temporary solution pending the introduction of legislation to establish the ONR as a statutory body. The draft Energy Bill will seek to provide the ONR with a statutory footing.

PROPOSED REGULATORY FRAMEWORK Part 2 of the draft Energy Bill establishes the ONR as a statutory body corporate with regulatory jurisdiction in the following principal areas: →→ Nuclear safety – protecting people against the risks of

harm from ionising radiation from licensed sites.

→→ Nuclear site health and safety – securing the health,

safety and welfare of people on licensed sites, and controlling the storage and use on licensed sites nuclear or radioactive matter. →→ Nuclear security – for example, ensuring the security of nuclear premises (or new build construction sites), nuclear materials stored on nuclear premises, and sensitive nuclear information. →→ Nuclear safeguards – ensuring compliance by the UK with its safeguard obligations under the EURATOM Treaty and other international safeguards agreements. →→ Transport of radioactive material – ensuring the security of, and protecting against the risks associated with, the transport of radioactive material in Great Britain by road, rail or inland waterway.

The ONR is given wide investigatory powers under the draft Energy Bill, including the rights to carry out an investigation, and prepare a report, into any accident, occurrence or situation that it wishes to investigate, and to direct an inquiry to be held into any matter that is necessary for the purposes of carrying out its regulatory functions. The ONR also has the power to issue codes of practice giving guidance as to the requirements of any statutory provision or health and safety regulations. These powers are broadly consistent with Dr Tim Stone’s recommendation in 2008 that the transparency of the UK regulatory regime should be enhanced.

PROPOSED CONSTITUTION OF THE ONR Schedule 5 of the draft Energy Bill sets out the proposed structure and constitution of the ONR. The Board of the ONR will be accountable to Parliament and Ministers and will be comprised as follows: →→ Up to four executive members, including: the Chief

Nuclear Inspector; and the Chief Executive Officer.

→→ Between five and seven non-executive members, including:

the Chairperson; and one person with nuclear security experience. →→ An (optional) HSE member to ensure that the ONR’s regulatory activities are consistent with health and safety legislation and policy.

Interestingly, the draft Energy Bill exempts the ONR from the normal civil service pay structure, such that the ONR is given wide flexibility over its financial and employment arrangements and is not prevented from offering employees and inspectors market-standard employment packages.

Again, this provision is directly in line with Dr Tim Stone’s 2008 recommendations which emphasised that UK nuclear skills are in short supply and that certain public sector remuneration constraints should be dis-applied in order to ensure that the ONR can recruit and retain the full complement of staff needed.

Schedule 8 of the draft Energy Bill gives the Secretary of State the power to make Staff Transfer Schemes which will transfer existing employees of the HSE (or certain individuals on secondment to the current interim ONR from the RMTT) to the ONR. The Secretary of State also has similar powers to make Property Transfer Schemes relating to the transfer of property, assets and liabilities from the HSE to the ONR.

LOOKING AHEAD It is important to remember that the proposals outlined above are in draft form only, and will remain so until the draft Energy Bill has completed its legislative passage through both Houses of Parliament.

The draft Bill will be subjected to the usual process of pre-legislative scrutiny, beginning with the Energy and Climate Change Select Committee inquiry into the provisions of the draft Bill. Their response is available on the Energy and Climate Change Select Committee website.

It is anticipated that the Energy Bill will receive Royal Assent, and therefore become law, in mid-2013. We will be monitoring the passage of the Bill closely.

2012 | Autumn — 25

NEW NIA MEMBERS

Not a member of the NIA? To find out about the work of the NIA and benefits of membership please visit our website at www.niauk.org for further details including information on our extensive working group programme, our monthly updates and our exclusive online trade directory.

To discuss the membership options available to your company please call Stephanie on 020 7766 6640.

Bourne Steel Bourne Steel deals with design, fabrication and erection of structural steelwork. They were formed in 1946, and currently sit among the top five steel fabrication companies in the UK. They employ over 150 people, 50% of whom possess over 10 years service.

welcome

Rotork Controls Ltd Rotork Controls are valve actuators for safety and non-safety related duty inside or outside containment of nuclear power plants.

Sheffield Forgemasters International Ltd The Manufacture of defence and civil nuclear forgings and castings including reactor pressure vessel, steam generator, pressuriser, pumps and valve components.

Grupo Dominguis Grupo Dominguis was founded in 1932, and its first activities took place in the fields of the civil and industrial construction. Over the years their experience has enabled them to offer their services to a wide variety of industries, including Shipbuilding, Chemical, Petrochemical, Nuclear, Energy, and Metals It is now one of the most important companies in the Spanish market, and the leading company in the nuclear sector with over 800 employees and an average of 80 engineers.

26 — Autumn | 2012

Bird & Bird Advice to NNB developers and contractors on regulatory, trade, export control and tiered contract structures. They provide high quality support services across all jurisdictions (23 offices in 19 countries).

The team has a long history of involvement in the nuclear sector and offer a fully integrated proactive support approach covering, engineering, regulatory, IT, data, contract delivery support and dispute resolution.

UK Atomic Energy Authority The UK Atomic Energy Authority’s principal mission is to position the UK as a leader in a future, sustainable energy economy by advancing fusion science & technology and related technologies to the point of commercialisation.

Our research is primarily focused on the development of fusion (magnetic confinement) as an energy source, working in collaboration with UK universities, industry and overseas organisations. We are also working with UK industry to ensure that it is benefiting from fusion opportunities such as ITER, and with the nuclear sector to explore the synergies between fusion and advance nuclear fission development.

Delta Controls Delta Controls Ltd has served the nuclear industry in the UK and overseas for over 40 years. A specialist in pressure, temperature and flow sensors, Delta has provided a range of generic and bespoke instruments to the industry across all the UK nuclear power plant in a variety of applications. Products also meet IEEE class 1E and RCC-E requirements for Nuclear Island use and are installed on PWR reactors worldwide.

NEW NIA MEMBER

Sheffield Forgemasters Rejoin the NIA

Sheffield Forgemasters (SFIL) has rejoined the NIA. The company, who hold a strategic position in the UK and global nuclear supply chain, restarted their subscription in Spring.

The company manufactures highly technical large-scale forgings, many of which form some of the main components within a civil nuclear power station. SFIL has recently developed innovative manufacturing routes for the production of large components for civil nuclear reactors. These include ultra large tube-sheets, primary heads with integrated support rings and pump casings. Such technology is applicable to ingot designing, forging, casting and heat treatment.

These technological developments are a landmark for the UK’s involvement in the global nuclear power supply chain.

Similar forging items have not been achieved anywhere else in the world or, in the case of pump casings, have only been supplied using a different manufacturing route due to the complications of creating such high quality castings.

As such forgings form the most crucial parts required within a modern nuclear power plant, the potential for this innovative forging technique is huge, with manufacturing time and cost saving implications to civil nuclear manufacturing

companies passed on through initial manufacture and a reduction of weld inspections and fatigue points once the component is in service. This technique has not been achieved by any other civil nuclear engineering company.

The company’s highly complex methods of computer simulation allowed teams at the Brightside Lane plant to create their largest ever forged tubesheet, which met stringent ASME international nuclear standards at the first attempt. To create the tubesheet, Forgemasters Engineering Ltd designed a special rotating forging tool and a circa six metre diameter forging platform.

The company’s key research into metallurgy has also enabled it to catalogue and characterise inclusions found in steelmaking to refine processes further and the development of different grades of steel for safety critical applications such as those required within the nuclear power industry.

The NIA looks forward to working closely with Sheffield Forgemasters to further strengthen the UK supply chain and to help place companies in a strong position to compete for competitive tenders.

2012 | Autumn — 27

The Change Challenge: Achieving Smooth Transition at One of UK’s Most Complex Nuclear Sites

Ø BDP Transition Manager Alastair

MacDonald

Key decommissioning work continues at Dounreay

28 — Autumn | 2012

When Babcock Dounreay Partnership (BDP) took over in April as the new Parent Body Organisation (PBO) to manage the decommissioning, demolition and clean-up of the Dounreay site – the first major closure project in the UK – it signalled completion of one of the UK’s largest public procurements in recent years. BDP, which is made up of Babcock, CH2M Hill and URS is now responsible for taking decommissioning at Dounreay to its interim end state, while both accelerating the programme (by up to 16 years over previous estimates of two years ago) and reducing project costs by well in excess of a billion pounds.

Day one of the new contract, when BDP took ownership of Site Licence Company Dounreay Site Restoration Ltd (DSRL), also marked the successful conclusion of a critical and complex transition programme. Between selection as preferred bidder by the Nuclear Decommissioning Authority (NDA) in late November and taking ownership of DSRL on 1 April, a major programme of work had to be undertaken

by BDP to conduct a seamless handover, with minimal impact on the DSRL team, and continuity of work at Dounreay.

BDP’s detailed planning, resources, and previous experience in carrying

out successful transitions was key to ensuring that this was achieved.

BDP Transition Manager Alastair MacDonald explains: “Cornerstones of the transition phase included the appointment and introduction of a new management team and stakeholder engagement, as well as completing ‘due diligence’ on the Dounreay Lifetime Plan.

Our proposal differed in a number of ways from previous site plans, requiring considerable preparation in order to proceed with the changes in a staged and carefully managed manner.”

“Not least among the successes of the transition programme was the considerable amount achieved in a short timescale,” MacDonald comments, “It effectively amounted to a complete review of the Dounreay programme, including every project and most parts of the organisation, over a two month period. BDP brings outstanding international decommissioning and sitemanagement expertise and a strong project and programme management ethos to the Dounreay closure programme, together with a new vision. Importantly, its approach to managing the transition period has, similarly, applied those project and programme management skills and experience – resulting in a safe, smooth and effective transition.”

OPINION

PowerPolitics “…the Government’s reforms can create a package that will provide investors with the certainty they need.”

My last column noted that nuclear energy was again in the political spotlight and that with the imminent Fukushima anniversary – and more positively Horizon’s long awaited technology decision – was likely to remain so.

This has clearly turned out to be the case, although perhaps not exactly as I imagined!

In the event the Horizon story took the form not of a firm commitment to the EPR or the AP1000 – and thus a positive step forward – but of a decision by RWE and E.ON to sell the company and exit UK nuclear. With the benefit of hindsight, and given their well documented difficulties in their domestic energy market, this should have come as no surprise. However to many observers, including yours truly, the news was quite a shock. In mitigation I probably thought that any withdrawal would have happened very soon after Germany’s political decision, and was falsely reassured when it did not.

The news clearly also came as a surprise to the media whose reaction, as ever pursuing a good story, was to abandon their previously generally supportive stance on the new build programme to a new narrative that the wheels had come off. Whilst this is hardly Leveson worthy, the net result was that question marks were placed over the commitment of all the key new

build players, including EDF Energy, and any comments were portrayed negatively.

Thankfully at the time of writing this may be changing again as it has been impossible to ignore a number of very positive stories – including recent reports of not one but two competing bids for Horizon, and importantly EDF Energy’s recent announcement of the preferred bidder for the civil works at Hinkley C. Of course the big news in this (damp) summer has been the publication of the draft Energy Bill setting out the Government’s Electricity Market Reform proposals, which has since been scrutinized by the Energy and Climate Change Committee. The Committee’s recent conclusion that the EMR proposals ‘as they stand are unlikely to be workable’ has unsurprisingly received a great deal of media attention.

What received less attention was their later statement that it is ‘possible for Government to revise the plans into a workable model’.

We would very much agree with the latter. Whilst important details remain to be worked out – not least the vexed counterparty issue – we believe in principle the Government’s reforms can create a package that will provide investors with the certainty they need to proceed with the new low carbon

plant that is critical to meeting the UK’s goals on carbon emissions and security of supply. That said, the Committee are right to point out that these issues need to be resolved very quickly, and that means in the next few weeks. New nuclear build will not become a reality without investor confidence in the proposals, and that requires robust, long term, transparent, secure and Government backed arrangements.

I would make one final point.

As well as delivering clean and secure electricity a substantial nuclear new build programme will lead to significant industrial and employment benefits – including major opportunities for the UK nuclear supply chain and a boost for UK manufacturing – and will be a major engine for growth at a critical point in the economic cycle. I know that this is not lost on Government!

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

2012 | Autumn — 29

30 — Autumn | 2012