Industry Link - March 2014

Europe takes centre stage this quarter as the EU Commission launch an in-depth investigation to examine whether UK plans for an investment contract for the Hinkley Point C New nuclear power station in Somerset are in line with EU state aid rules.

Magazine of the UK nuclear industry association spring / 2014

NIAuk.ORG

State Aid Consultation AP1000 deal for nugen's moorside project The Energy Pricing Dilema

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energy bill becomes 15 2013 energy act

Welcome to IndustryLink

lifetime Enterprise Agreement for uk agr fleet SNAPSHOT

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VISIT NIAUK.ORG

Alastair Evans Alastair.Evans@niauk.org

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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 62,000 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 EMAIL info@niauk.org

Editor - Alastair Evans Art Editor - Dan Powney Contributors Rupert Lewis, Peter Haslam, Keith Parker, Amanda MacMillan – Horizon Nuclear Power, Phil Rodgers – FrazerNash Consultancy Limited, Jeremy Gordon – World Nuclear News, Terry Gilbert– Riverside Nuclear Consulting Limited , Paul Nicholson – nucleargraduates, with additional thanks to World Nuclear News

IN VIEW

what's next for horizon nuclear power?

MAIN FEATURE

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Press Enquiries Alastair.Evans@niauk.org TEL 07894 595 718 Advertisement Enquiries Rupert.Lewis@niauk.org 020 7766 6642

TEL

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OPINION

“ The UK operates a globally respected regulatory system that has been developed by some of the most talented nuclear safety and licensing engineers in the world.”

Cover image: Adapted from The flag of the European Union, seen in Karlskrona (Sweden) in 2011 by MPD01605 — http://commons.wikimedia.org — CC BY-SA 2.0 http://creativecommons.org/licenses/by-sa/2.0

Nuclear new build takes centre stage as we begin 2014.

The Hinkley Point Contract for Difference is undergoing the expected investigation by the European Commission, and we remain hopeful of a final investment decision being made by EDF Energy in the summer of this year.

Following much speculation, Toshiba announced their intention to take a 60% share in the NuGen Moorside project. This clarified the reactor choice, and allowed Westinghouse to set out their timetable for the project.

Horizon announced the list of successful lead suppliers who will take forward the work covering; site investigation, engineering support, permits, project management support and planning.

This comes in the wake of further good news that nuclear accounted for the largest share of energy production in the EU in 2012.It is vital that our own programme of new build allow us to maintain our contribution to that figure into the 2020’s and well beyond.

In this edition of the magazine we look back at the UKTI civil nuclear showcase, the Energy Bill becoming the Energy Act and developments from around the World.

Three Westinghouse AP1000s for NuGen’s Moorside Project

ABOUT THE AP1000 REACTOR The AP1000 is a pressurised water reactor (PWR) with a small physical footprint which belies the fact that it’s an advanced nuclear plant design.

The reactor uses the forces of nature and design simplicity to enhance plant safety and operations, and reduce construction costs.

With a power output of around 1150MW an AP1000 reactor is only around half the physical size of a conventional nuclear power station of the same output. It’s the only Generation III+ reactor technology so far to have received design certification from regulators in the US, and interim design acceptance from UK regulators.

The AP1000 reactor is a modular design that makes best use of modern construction techniques, allowing tasks that are traditionally performed in sequence to be completed in parallel. This approach reduces the time it takes to build, reducing both cost and risk. It features the most advanced instrumentation and control in the industry, and its simplicity means the unit is more economical to operate – fewer components and systems mean there is less to install, inspect and maintain.

There are now eight AP1000 nuclear reactors under construction – four in China and four in the USA.

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new nuclear power station that will provide seven per cent of the UK’s electricity needs will be up and running within a decade, after a major deal was agreed to move ahead with plans to build three reactors in West Cumbria.

Westinghouse Electric Company has revealed that its parent company Toshiba Corporation has agreed in principle to take a 60 percent share in the NuGeneration Limited Moorside Project. The £102m deal, announced in January, will see a trio of Westinghouse AP1000® nuclear reactors built on the site in partnership with NuGen’s owners, GDF SUEZ. NuGen was set up in 2009 by energy companies GDF SUEZ and Iberdrola of Spain, to develop the Moorside site. Under the new agreement, which was brokered in December, Toshiba will buy Iberdrola’s entire 50 per cent stake in NuGen and a further 10 per cent of GDF Suez’s holding.

The partnership is a further step towards helping the UK replace its ageing fleet of nuclear power stations, a boost for the Government’s policy for new nuclear development and support for its low carbon and energy security objectives.

As well as creating thousands of skilled jobs, construction of the new units will significantly boost local, regional and national economies, with a large portion of the project open to the UK supply chain. Underlining Westinghouse’s ‘buy where we build’ pledge, it is anticipated that the majority of the project budget will be spent in the UK and so far, more than 500 suppliers have registered their interest in working on AP1000 projects.

The first unit is expected to be online in 2024 and when fully operational, the Moorside site could deliver around 7% of the UK’s electricity requirements through the 3.4 GW output of the AP1000 reactors.

Danny Roderick, Westinghouse President and CEO, said the partnership with NuGen strengthens the commitment of Toshiba and Westinghouse in enabling countries across the world to achieve their carbon reduction goals.

He added: “We have a strong commitment to Europe and to providing the world’s most advanced technology, the AP1000 nuclear plant design, so customers can achieve cost-effective energy security and diversity while not damaging the environment with carbon and greenhouse gas emitting sources.”

Simon Marshall, UK Business & Project Development Director, at Westinghouse said: “The global expertise of Toshiba, Westinghouse’s world-leading technology and GDF SUEZ’s pioneering experience as a European nuclear operator is a powerful combination. We know this plant design is the right choice for the future and for the UK.” The NuGen deal is the third time Westinghouse’s AP1000 technology has found favour in Europe recently. The company signed an exclusive agreement with Bulgaria Energy Holding for AP1000 technology, also in December, and is awaiting a final decision after being selected as the front-runner in the Czech Republic’s new nuclear unit tender.

Westinghouse will manufacture the fuel for the new AP1000 reactors at its Springfields facility, a UK-licensed fuel manufacturing plant in Preston, Lancashire. Springfields currently produces fuel for the UK’s entire advanced gas-cooled reactor fleet, as well as pressurised water reactor fuel for export.

ABOUT WESTINGHOUSE

© Sanmen Nuclear Power Company, Ltd

A Toshiba Corporation company, Westinghouse is a leading supplier of nuclear plant products and technologies to utilities throughout the world.

The world’s first commercial pressurised water reactor nuclear power plant, built in the US in 1957, was supplied by Westinghouse and today, around half of the operating nuclear power plants in the world are based on Westinghouse technology.

Westinghouse has extensive UK-specific experience as owner and operator of the Springfields site in Lancashire, which has provided nuclear fuel products and services for over 65 years – in fact it was the first plant in the world to produce fuel for a commercial nuclear power station.

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Media Watch EW WSSS NNNEEW

Success through cooperation By. Keith Parker

Shadow Secretary of State for Energy and Climate Change, Caroline Flint MP appeared on the BBC’s Andrew Marr show on 23rd February. In the interview Flint spoke about the Labour Party’s planned reform of the energy market. Their intention remains to ring fence generation and supply as well as giving us a new and more powerful independent regulator.

In relation to nuclear she explained that Labour are supportive of the Coalition’s new nuclear build programme. She also spoke out in support of the contract for difference agreed between the Government and EDF Energy for Hinkley Point C. When questioned on the cost of new nuclear and specifically Hinkley she said, “when you look at the unit costs of electricity... (nuclear) is cheaper than other low carbon sources.”

On 31st January, Sellafield Ltd announced that overnight one of the sites radiation monitors detected levels “above naturally occurring radiation” but it was explained that these were “well below that which would call for any actions to be taken by the workforce on or off the site.” Later in the day it was announced by the site that following investigation and analysis the radioactivity detected by the monitor was attributable to “naturally occurring background radon.” Representatives from Sellafield Ltd made a number of media appearances to update the public on their investigations on site and used Twitter effectively to provide rolling updates.

The Nuclear Industry Association’s Head of Policy, Peter Haslam was interviewed by a number of journalists from the Taiwanese United Daily News. The interview focused on the UK’s new nuclear build programme and the importance of public and political support for civil nuclear energy.

Jean-Pol Poncelet, FORATOM Director General was interviewed

by Platts about his expectations for 2014. He explained that the most important issue for the European Union in 2014 will be the European elections and the nomination of a new Commission which will be in place for the next five years.

On energy, he stated that the EU must liberalise the energy market to attract investment. He went on to say that the British Government’s Electricity Market Reform’s that includes the all-important Contracts for Difference mechanism may come to determine the contracting structures for deals across Europe.

Richard Gray from the Daily Telegraph produced a short film on the newspaper's website entitled “Hinkley Point C: Britain’s nuclear future.” The video provided a brief overview of the project and in particular the construction works associated with the project. In a short blog that accompanied the article Richard wrote “With many of Britain’s coal fired power stations due to shut down in the next year, and renewable energy such as wind farms unable to fill the gap… the importance of nuclear power is becoming ever greater.”

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Following discussion at the Nuclear Industry Council in November, the NIA has established a Nuclear Supply Chain SME Partnership, with the support and involvement of the new build developers, and government departments DECC and BIS.The partnership was formally announced at the EDF Suppliers’ Day on 9th December, and endorsed by the Energy Minister, Michael Fallon MP. The aim of the SME Partnership is to bring together new build developers and the current and potential nuclear supply chain, working in partnership with government and other industry bodies, to maximise opportunities for manufacturing SMEs primarily in the nuclear new build programme.

It will facilitate exchanges of practical information about programme timing, codes and standards, client requirements and routes to market, and provide advice on the support available from government and industry organisations particularly in respect of manufacturing capability and finance. It will also encourage SMEs to develop partnerships with companies already established in the developers’ and reactor vendors’ supply chains.

Part of the initiative involves cooperation with the French supply chain organisation PFME (Partenariat France Monde ElectricitĂŠ) which comprises 70 companies that are qualified suppliers to EDF for the French nuclear programme. During the Anglo-French Summit, hosted by the Prime Minister at RAF Brize Norton on January 31st , the UK and French governments agreed to work together to maximise opportunities for SMEs in nuclear supply chains.

During the summit NIA Chairman, Lord Hutton signed a Memorandum of Understanding between NIA and PFME together with Vincent de Rivaz, the CEO of EDF Energy, and Serge Klaeyle, the Chief Executive of PFME. The MoU forms the basis of cooperation to help members of the SME Partnership and PFME to develop their business interests in both countries as well as overseas.

The broad objective is to enhance dialogue, information exchange and communications between the two organisations.

A joint event with PFME is being planned in the UK for later in the Spring.

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South Korea green light for two new reactors The Government has authorised construction of Shin Kori 5 & 6, with construction of the 1455 MWe AP1400 reactors to start in September 2014.

Shin Kori 3 & 4 are the reference units for the four AP1400 units being built at Barakah for the UAE, in a $20 billion project. They are expected on line this year, having experienced some delays in construction.

economic justification for the construction of a nuclear power plant in Poland and possible means to finance it, as well as ways of managing the resulting used fuel and radioactive wastes.

According to the schedule, the location and reactor technology for the first nuclear power plant will be selected by the end of 2016. By the end of 2018, all required approvals for the plant's construction should be obtained. The first unit is set to start up by the end of 2024, with the second unit starting up by the end of 2030.

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Plea for nuclear power Polish cabinet approves in Australian energy policy new nuclear plan 2

The Polish government has adopted a revised program for the construction of the country's first nuclear power plants, which aims to see two facilities in operation by 2035.

The program is a strategic plan which defines the schedule for the construction of the country's first nuclear power plant and the preparation of the regulatory and organisation framework for these investments.

The resolution also establishes the roles and responsibilities of the institutions responsible for implementation of the program, as well as issues related to nuclear safety and radiological protection. The program includes the

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Australia should remove barriers to nuclear power so that it can be considered as an electricity generation option inside an apolitical future energy policy, a think tank has told the government.

The call for the removal of prohibitions on nuclear power is part of a list of 26 recommendations from the Energy Policy Institute of Australia (EPI), an apolitical energy policy body representing stakeholders in Australia's energy industry, in a report submitted as part of an ongoing consultation on energy policy. The institute's submission looks in detail at issues including energy security, regulatory reform and economic considerations as well as the merits of energy sources and technological developments.

The submission follows the Australian government's ongoing process to draw up a new Energy White Paper to be released in September. Australia's Ministry of Industry formally launched the White Paper process in early December 2013.

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Finance deal for new units in Hungary Hungary has reached an agreement with Russia over a finance package for the construction of two new reactors at the Paks nuclear power plant.

Hungary's economic minister Mihaly Varga announced that Russia has agreed to lend the country â‚Ź10.0 billion to build the reactors. The loan will cover 80% of the project costs, with Hungary to provide the remainder.

Hungary is to repay the variable-rate loan over 21 years, starting about six months after the new units have been commissioned. The interest rate for the initial eleven years will be below 4.0%, while in the second phase it will be 4.5% and in the third and final phase it will be 4.9%.

Last month, Hungary and Russia signed a cooperation agreement which included the construction of two new VVER reactors of up to 1200 MWe each at Hungary's existing four-unit Paks plant.

The first new unit is to be commissioned in 2023, with the second following about two years later. Russia will also supply fuel and train staff for the new units.

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

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What's next for Horizon Nuclear Power?

2013 was a busy year for the industry, and for Horizon in particular. Here we recap on the progress we have made, and highlight some of our upcoming milestones for 2014.

By. amanda macmillan

We announced our new project name Wylfa Newydd, ‘New Wylfa’, in November at a reception held on Anglesey with key local partners and stakeholders. Now that our project is gathering pace and will become more visible to the local community, our new name marks our intentions to build prosperity and economic benefits, respect the local culture and language, and play our part in the generation of a positive and successful future.

gda At the start of 2014, our reactor technology partners, Hitachi-GE, entered phase 2 of the Generic Design Assessment process with the UK Advanced Boiling Water Reactor.

This isn’t only a technical exercise – it has also involved a major phase of public engagement, including a new website - www.hitachi-hgne-uk-abwr.co.uk - dedicated to explaining the reactor technology, publishing the key GDA submissions and inviting comment on the design. You can read more about the progress we have made at Page 22.

Towards the end of last year, we awarded Strategic Framework Partnerships led by four accomplished companies, AMEC Nuclear UK, Atkins, Cavendish Nuclear and Jacobs UK. These strategic partners will be working directly with Horizon over the coming years to provide specialist professional consultancy support.

Primarily desk-based studies, the specialist services could range from architectural and geotechnical investigations to waste management, and nuclear design engineering support. This marks a real step forward for Horizon as we continue to develop our supply chain approach.

Businesses interested in highlighting goods and services that might be relevant to the delivery of our project can register via our website.

VISIT www.horizonnuclear power.com/supplierregistration

All images courtesy of Horizon Nuclear Power — www.horizonnuclearpower.com

Wylfa Newydd

Signing of Strategic Framework Partnerships

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IUK Signing a co-operation agreement with the Treasury just before Christmas was a welcome demonstration of the UK Government’s continuing commitment to making a new generation of nuclear power stations a reality, and the confidence they have in Horizon’s plans in particular. The Memorandum of Understanding with the Treasury will enable us to access the Infrastructure UK Guarantee scheme and will strengthen our ability to attract project finance.

Building the Organisation

Masaharu Hanyu, Deputy Chairman of Hitachi Europe Ltd. and Chief Executive of the Nuclear Power Systems Business in Europe, along with Danny Alexander MP, Chief Secretary to the Treasury and Alan Raymant, Horizon’s Chief Operating Officer

Underpinning all this, is the growth of Horizon itself into a fully-fledged nuclear operator. We now have our full senior management team in place. We have nearly 150 staff, growing at a rate of around 8 per month, towards an eventual complement of 350-400. We are focusing on growth at the right pace to ensure we are well placed to satisfy rigorous regulatory demands and make the decisions our programme will demand as the intelligent customer for one of Europe’s largest infrastructure projects. For the latest job vacancies visit our website.

next steps Looking ahead, we have a number of exciting activities and challenges to deliver in 2014.

The NIA’s Regulatory Justification application for the UK ABWR has now been published by the Government for public consultation – beginning a process that we expect will be concluded by early 2015.

In March, we will be embarking on one of the UK’s biggest ‘Ground Investigation’ projects at the Wylfa Newydd site, and during the second half of the year we will be describing the overall project proposal for the first time as we launch the first round of formal public pre-application consultations.

In 2012 we secured an exciting new future for Horizon.

In 2013 we focused on integration with Hitachi and establishing a firm bedrock on which to build. 2014, and every year of our programme thereafter, will be about delivery, as we move forwards in our mission to create a leading nuclear utility company safely and successfully developing, constructing and operating the UK Advanced Boiling Water Reactors at Wylfa on Anglesey, and near Oldbury-on-Severn in South Gloucestershire.

Daron Hodges, Wylfa Site Manager, supervising site preparation works ahead of GI activities commencing in March

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VISIT www.horizonnuclear power.com/careers

2014 | spring — 9 All images courtesy of Horizon Nuclear Power — www.horizonnuclearpower.com

OPINION

Regulation Presents International Opportunities for UK Companies

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he agreement on the electricity strike price between the Government and EDF Group presents the UK with the first opportunity in a generation to license, build and operate a new nuclear power station on UK soil.

This is an extremely significant development for the UK nuclear sector but what benefits can UK industry expect to gain from this and how can we best capitalise on the experiences and capability that we will develop through the new build programmes, both now and in the long term?

The NIA Capability Report 2012 outlines the expected resource levels required for the new nuclear build programme and the capability of the UK’s supply chain to deliver. The conclusions showed that there must be increases in the resources in certain capability areas to support the development of new nuclear, which could require up to 5,600 people on site during construction. Furthermore, up to 1,000 new specialist nuclear jobs will be required for the 60 year life span of each station who will also be supported by an expanded nuclear focused supply chain.

There are some aspects of new build that the UK simply cannot do, like the Reactor Pressure Vessel. But we have a breadth of skills and experience in safety, licensing and regulation. The opportunities in this are a clear area in which the UK can benefit in three distinct ways.

Firstly, there are some areas of expertise required for UK new nuclear build where there is no, or very little, scope for contracts to be placed with overseas companies in safety, licensing and regulation. The UK operates a globally respected regulatory system that has been developed by some of the most talented nuclear safety and licensing engineers in the world. Fulfilling its requirements demands specific and specialist knowledge held almost entirely by UK experts.

There are therefore significant opportunities for UK engineers and companies to support the Developers and the Regulators. Developers of new nuclear in the UK will need assistance navigating the regulatory process to satisfy the Regulators and appropriately address each of the 37 license conditions and other requirements. Similarly the Regulators must assess designs, safety cases, management arrangements and many more aspects of the nuclear new build project to be satisfied that the nuclear plant is being, and will be, designed, built and operated safely.

Due to the specific nature of the UK’s regulatory regime, UK companies with experience of the UK nuclear industry are well placed to support both future licensees and the Regulators with little competition from abroad. This means UK companies and UK talent will develop even stronger competencies in this area. In time, this could assist UK companies in securing

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contracts internationally, based on the experience of working under a regulatory regime considered amongst the most highly respected in the world.

The second strand of opportunity available to UK companies is the ability to build capacity and capability with confidence that there will be a future need. Not only will an increase in resources be required for delivery of new nuclear in the UK but also the ageing demographic of the UK’s nuclear engineers means bringing new talent into the industry is essential. The UK has a number of significant initiatives, for example the National Skills Academy for Nuclear (NSAN) and a number of nuclear engineering university courses, which provide the training required for entry to the nuclear sector. UK industry must capitalise on the opportunity and support the development of new nuclear engineers, by recruiting and developing staff within their organisations.

The third aspect of the industry that presents opportunity is linked to the fact that three different reactor technologies will be developed in the UK; The UK European Pressurised Reactor (UK EPR) from Areva and EDF, the UK Advanced Boiling Water Reactor (ABWR) from Hitachi, and the AP1000 from Westinghouse Electric Company. The recent addition of the AP1000 to the list follows Toshiba’s purchase of a majority stake in NuGeneration in December 2013 and their announcement that they intend to build three AP1000 units at their Moorside site in Cumbria.

Having this mix of reactor technologies will enable the UK to generate a workforce with knowledge of each type of reactor across the full range of disciplines including engineering, control and protection and civil engineering alongside safety, licensing and regulation as previously discussed. This can put UK companies, workers and contractors in a unique position of being able to seek out opportunity almost anywhere in the world based on their experience of supporting and developing these three major nuclear reactor technologies.

In summary, although some of the work generated through the UK’s new nuclear build projects will go to companies from outside the UK, the underlying fact of the matter is that the current Phil rogers programme of new nuclear builds is a hugely positive Frazer-Nash phase for the UK’s nuclear Consultancy industry that can be a Limited stepping stone to the longer term positioning of UK industry as an international provider of nuclear services.

German nuclear shutdown unlawful

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he forced closure of RWE's Biblis nuclear power plant after the Fukushima accident was unlawful, Germany's Supreme Administrative Court has ruled. The utility is now likely to sue for considerable damages.

Germany's reaction to the Fukushima accident in 2011 was extreme, with Chancellor Angela Merkel making two decisions: one to order a shutdown of 8 units that started operation in or before 1980 for a three-month moratorium period; and subsequently that those units may not be allowed to restart.

Without consultation or reference to independent regulatory advice on the safety of the plants, the orders were executed by the German states which are home to the reactors.

The State of Hesse was told in January 2014 that it acted illegally by enforcing the decisions on the Biblis nuclear power plant sited in the state, backing up a decision made in February 2013 by the Administrative Court of Hesse. This had been appealed by the Hesse Government, but the ruling in January by the Supreme Administrative Court dismissed that appeal, making the state court's decision binding with no further appeal possible. Efforts to force the shutdowns were “formally unlawful because [RWE] had not been consulted and this constituted a substantial procedural error,” said the court.

Plant owner RWE can now sue for compensation over the loss of the Biblis units as an asset. The plant has two reactors, Biblis A and B, which are

Pressurized Water Reactors rated at 1167 MWe and 1240 MWe respectively and had been licensed to operate until 2019 and 2021 just two months before the shutdown order. The company has previously said it suffered losses of over €1 billion in 2011 alone due to the Biblis shutdown.

The same shutdown orders hit Germany's other nuclear operators, EOn, Vattenfall and EnBW, although EnBW is 45% owned by the Green-governed state of Baden-Wurttemburg and is not contesting the shutdown or appealing a ruling that upheld the fuel tax. EOn and Vattenfall have doubts about the legality of the shutdown order, but have chosen not to pursue the matter in court, industry group Deutsches Atomforum told World Nuclear News.

Instead, the companies are contesting the constitutionality of the 2011 amendment to the Atomic Act which redrew operating periods for the remaining reactors. Another set of questions on the fuel tax have now been referred by German courts to the European Court of Justice. Sweden-owned Vattenfall is contesting the shutdown via international arbitration.

Collectively the utilities lost 8336 MWe of nuclear generating capacity, closing Biblis A and B, Isar 1, Neckarwestheim 1, Brunsbuttel, Unterweser, and Phillipsburg 1. Despite only starting operation in 1984, Krummel was not brought back from longterm shutdown.

Celcius by Dirk Schmidt — http://commons.wikimedia.org — CC-BY-SA-3.0,2.5,2.0,1.0 http://creativecommons.org/licenses/by-sa

by. jeremy gordon ⁄ world nuclear news

2014 | spring — 11

Collaborative research takes DISTINCTIVE approach

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he National Nuclear Laboratory (NNL), Nuclear Decommissioning Authority (NDA), Sellafield Limited, the Engineering & Physical Sciences Research Council (EPSRC) and a consortium of UK universities are collaborating on a multi-million pound four year research programme which started in February 2014.

The programme has taken the name DISTINCTIVE which stands for Decommissioning, Immobilisation and Storage soluTIons for NuClear wasTe InVEntories. DISTINCTIVE will focus on four key areas: →→ AGR, Magnox and Exotic Spent Fuel →→ Plutonium oxide and Fuel Residues →→ Legacy Ponds and Silos Wastes →→ Infrastructure characterisation, restoration and preservation

Not only will it tackle a number of key challenges in the UK’s nuclear legacy but will also provide experience and learning for the next generation of nuclear professionals.

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It is estimated to cost £8-9 million, with the EPSRC contributing a £4.9 million grant. This grant will be supplemented by additional financial and in-kind support from NNL, NDA, Sellafield Ltd and the universities.

The consortium of universities is led by Leeds, and includes Birmingham, Bristol, Imperial, Lancaster, Loughborough, Manchester, Sheffield, Strathclyde and UCL. NNL's Chief Science and Technology Officer, Graham Fairhall, said: “This is great news and we are grateful to EPSRC for their substantial support. Having 10 of the UK's leading universities working collaboratively with industry in this important area makes this a very significant programme.”

Principal Investigator for the DISTINCTIVE programme, Professor Simon Biggs of University of Leeds said: “This research consortium represents an important stage in reinforcing the industry-academia links that have begun to grow in recent years and provides key support to underpin an academic skill base in this crucial area for the UK.”

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NUCLEAR IS

GREAT BRITAIN

The Civil Nuclear Showcase is a result of collaboration between the Nuclear Industry Association and the Government, represented by UK Trade and Investment.

The aim of the conference is to encourage trade between the UK and overseas countries and in particular the export of goods and services to countries around the world.

Following keen interest from the previous two conferences, this year’s ‘Showcase’ was extended to two and a half days and was held in Central London in January.

This years was the most successful conference yet with over 100 overseas visitors and in excess of 250 UK delegates.

The overseas countries taing part included Bulgaria, Japan, South Korea, Vietnam, USA, Slovakia, Malaysia, Slovenia, Poland, Belgium, Germany, Lithuania, China, Czech Republic, Croatia, France, Canada, Jordan, Hungary, Spain, Belgium, Russia, India, Turkey and Slovakia.

Feedback from previous events resulted in this year’s event being ‘themed’ into three sessions: The format of the first two days followed a similar pattern with presentations from leading UK companies in the morning with specific country briefings made by the visiting overseas delegates in the afternoon. The briefings provided an insight to the UK delegates of the current situation in the respective countries along with their particular needs.

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The country briefings were followed by one to one sessions enabling UK companies to build relationships and find out more about countries of interest.

Jonathan Allen, British Ambassador to Bulgaria, facilitated a panel discussion with representatives from eight emerging countries comprising Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia.

The approach taken by Government is to assist UK companies by having a single point of contact for companies who want to tap into various opportunities worth over £23bn in this bloc of countries. →→ Day one - ’Making it happen’ was

introduced by Baroness Verma, Parliamentary Under Secretary of State at the Department of Energy and Climate Change. Presentations were made by leading companies and organisations from the UK who focused on the UK approach to nuclear new build. Decommissioning was covered, with a focus on dealing with both legacy nuclear waste and managing spent fuel arising from future operations.

→→ Day three –‘Manufacturing and the

Supply Chain’ - Dame Sue Ion opened the day with a presentation on the history of the UK nuclear industry and our involvement in the designs for a number of technologies available around the world today. This was followed by presentations by the NIA, the Nuclear Decommissioning Authority (NDA) and the Nuclear Advanced Manufacturing Research Centre (NAMRC).

The closing session of the conference was a novel “speed dating” session in which eight UK suppliers were limited to a 10-minute time slot to explain to the audience the merits of their products.

UKTI and the NIA are now considering making this a permanent event in the Nuclear Events Calendar (circa January 2015).

For further information regarding future events, please keep track of the NIA web site, in particular the Exports Working Group Section on www.niauk.org or the UKTI web site www.ukti.gov.uk.

Terry gilbert →→ Day two – ‘Supporting the nuclear

industry’ NIA Chairman Lord Hutton made the keynote speech. Over the course of the day we looked at skill shortages, research and development and the funding of the new build programme.

Vice Chair, Nuclear Exports Group terry.nuclear@gmail.com

Ed Davey MP Secretary of State for Energy and Climate Change

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ver a year since its introduction into parliament the Energy Bill has now gained royal assent. The Bill will establish a legislative framework for delivering secure, affordable and low carbon energy. It was first introduced to the House of Commons on the 29th November 2012.

The Bill went through the following stages before obtaining royal assent: 1st and 2nd readings, committee stage where amendments can be made, report stage and finally the 3rd reading. The Bill then underwent the same five stages at the House of Lords and passed to the amendment stage whereby the Bill is reviewed by each house until an agreement is reached, at this point the Bill reached Royal Assent and become an Act of Parliament.

The Act focuses on an extensive range of themes, one of which is decarbonisation. The UK has set itself targets to reduce emissions by 50% relative to 1990 baseline levels. In a bid to achieve these targets and ensure we have security of supply, the Government is pushing for the development of low carbon technologies through this Act. The Electricity market reform is an important part of the Act, with capacity market and emissions performance

standards discussed at length. The Act formalises the structure and purpose of the ONR – making it a statutory body, allowing the ONR to carry out nuclear regulatory functions on behalf of the Secretary of State.

The Energy Bill will look to drive investment into the UK, current projections estimate a capital investment of £110 bn will be needed to upgrade the UK electricity system and replace stations going offline whilst increasing UK generation capacity to provide a secure energy supply which is less dependent on foreign imports.

It is estimated that investments in the order of £31billion have been made since 2010 and by 2020 a further £40billion is expected. With these investments and 10 new projects granted by the government the level of CO2 emissions is set to decrease by an enormous 25 million tonnes whilst the level of generation capacity is set to rise.

Furthermore, the implementation of the policies set out in the Energy Bill are estimated to create around 250,000 jobs and aim to reduce energy bills at a time when fuel poverty has become a major issue that needs to be tackled effectively and swiftly.

2013 energy act

Energy Bill becomes

“ We have driven the Energy Bill through Parliament on time to send out a clear signal to investors and industry. We have delivered the certainty they need and confirmed Britain’s position as one of the most attractive countries in the world to invest in energy generation.”

2014 | spring — 15

Introducing Cavendish Nuclear

A new name, with a 50 year nuclear heritage 16 — Spring | 2014

We are the UK’s largest UK site management, engineering and support services organisation with a 50 year nuclear heritage, we offer unsurpassed depth of experience and breadth of technical expertise spanning the full nuclear lifecycle, from design and build, through operation and maintenance, to decommissioning and remediation. We have amalgamated and integrated the nuclear capabilities and expertise from major players including BNS, UKAEA Ltd and VT Group. We manage five nuclear licensed sites in the UK (including Dounreay, Harwell and Winfrith as a parent body organisation). With a workforce of some 3,500 skilled employees, we have an unrivalled SQEP resource covering a diverse range of science, management and engineering disciplines, and a total commitment to safety (reinforced through excellent safety management skills), quality and delivery. We have successfully undertaken some of the industry’s toughest challenges.

We are… Cavendish Nuclear. www.cavendishnuclear.com

A wholly owned subsidiary of the Babcock International Group 2014 | spring — 17

IN VIEW

Magnox signs £200 million contract

M

agnox has signed framework contracts worth over £200 million for the supply of robust, transportable self-shielded waste containers to store various types of intermediate level waste (ILW), generated during the operational and early decommissioning phases of the UK’s Magnox nuclear power stations.

The six-year contract with three suppliers (Croft Associates Ltd, Chester-Simplex, and Siempelkamp Nukleartechnik GMBH) is in addition to the existing arrangements with GNS Ltd and will increase security of supply for the waste containers, which are central to Magnox’s strategy for decommissioning and delivering eight of the ten nuclear sites into care and maintenance.

The frameworks, which will also be available to other site licence companies (SLCs) in the Nuclear Decommissioning Authority’s estate, will help develop the supply chain in the UK and will provide a strong platform for SME’s to enter into the market.

It has been calculated that Magnox will require more than 2,000 of these packages which, once filled, will be stored in purpose built facilities at nuclear sites until the UK’s national repository becomes available.

Peter Welch, Lead Contract Manager for the NDA, added: “Diversification of supply for this contract will support development of the decommissioning market. We welcome this opportunity for the SLCs to deliver improved value and, at the same time, strengthen the supply chain.”

The first orders will be for 50 containers from each supplier and will be placed, as part of the framework, early in 2014.

18 — Spring | 2014

“ This type of contract offers many real benefits, including increased value for money, improved security of supply and it opens up programmes of work and increased opportunities for the UK supply chain – including SMEs (Small and Medium-sized Enterprises).”

© Magnox Limited — www.magnoxsites.com

Dr Peter Walkden Magnox Commercial Director

2014 | spring — 19

The Energy Pricing Dilema by. Alastair Evans

Energy has been front page news ever since Ed Milliband’s price freeze promise in 2013. The focus - reducing the cost of consumer bills. Labours politically astute manoeuvre to do this through a price freeze either “gave hope to millions” or will “bankrupt suppliers” depending on the newspaper you read…

The coalition Government countered with the removal of green levies, saving the average consumer £53 a year. This comes in the wake of increases across the board on energy bills. We can expect energy to play a significant role at the forthcoming budget, and to be an even bigger issue at the election on 7th May 2015.

To this end, the Labour Party has published the ten actions they would take to reset the energy market. These include abolishing Ofgen, separating supply and generation businesses, and the much trumpeted price freeze.

This competition to reduce costs, whilst understandable, could have a significant impact on the view of Britain as a destination for investors. In the wake of the price discussions, Paul Massara, Npower’s Chief Executive commented that the price promise had led to a “dramatic cooling of investment into the UK”. He went on to comment that “companies [were] asking hard questions about whether Britain had become a riskier place to invest.”

Interventions by politicians of all parties have a dramatic impact on a companies balance sheet – and often not in a positive way. On 11th February the Energy Secretary Ed Davey threatened to break up the UK’s largest supplier of gas, British Gas. This announcement wiped £300million off the share price

of Centrica on one day as the market reeled from the mere suggestion of this policy move.

This is a tough time to be an electricity generator or supplier.

The intervention from Davey comes amid an independent market assessment of energy pricing by the Office of Fair Trading which will report in March, as well as stinging and prolonged criticism from the media and politicians.

What is often forgotten is that Britain comes 5th in a ranking of the cheapest domestic electricity prices in Europe. But according to DECC figures we need to spend £110billlion on new power plants and upgrades to the UK's electricity networks over the next eight years.

How does this huge capital investment and need to attract funds from around the world to support it, marry with politicians of all hues looking to drive down costs in the energy markets?

Arguably it doesn’t, and we are yet to see any politicians stick their heads above the parapet to make this point. If UK growth is to continue it is vital that we attract the essential investment to these shores – especially in the energy market – and this is what happens without investor confidence.

The Energy Act has given more clarity and significantly more certainty to investors. But there is a risk that political uncertainty on energy policy could undermine this. Politicians are right to protect consumers – but they need to ensure they look after their long term interests as well. People want cheap power, but not at the cost of the lights going out.

Source: DECC International energy price comparison statistics (December 2013)— www.gov.uk

Domestic Energy Prices in the EU (pence/kWh)

20 — Spring | 2014

SNAPSHOT

Doosan Babcock to deliver lifetime support to EDF Energy’s UK nuclear power stations Doosan Babcock Limited has signed a major agreement with EDF Energy to support the operations of the energy company’s seven UK Advanced Gas Cooled Reactors (AGR) power stations.

The Lifetime Enterprise Agreement (LEA) means Doosan Babcock will provide operational support and lifetime extension services until the end of generation at the stations. The agreement will support EDF Energy in delivering secure, reliable, and low carbon power throughout the UK. It will also provide employment for up to 1,000 people.

The power stations at Dungeness B, Hinkley Point B, Hunterston B, Hartlepool, Heysham 1, Heysham 2 and Torness together generate 7,550 MW (megawatts).

Under the LEA, Doosan Babcock will not only support the ongoing operation of the power stations but will also deliver projects to support life extension which will extend the reactors’ operational lives.

The contract will call for up to 1,000 skilled employees at any one time with the long timescale giving Doosan Babcock the opportunity and confidence to plan to meet the resourcing needs required into the future. The agreement will come to an end when the last of the seven power stations ceases power generation.

EDF Energy’s award of the contract to Doosan Babcock was the culmination of two years of detailed planning and builds on the latter’s established experience in the maintenance, repair and overhaul of nuclear reactors, as well as reactor vessel-entry services and capability in delivering high-end project, engineering and technical services.

Commenting on the announcement, Cameron Gilmour, Doosan Babcock’s Nuclear Service Director said: “Doosan Babcock has a long history of supporting EDF Energy in the UK nuclear sector and we are delighted to have been given

this opportunity to further build our relationship. The LEA is the result of close collaboration and a great deal of planning from both our companies, and will give EDF Energy access to a range of specialist skills and technologies that will support its UK power generation strategy long into the future.”

Brian Cowell, Director of Nuclear Operations at EDF Energy said: “Doosan Babcock’s unique range of skills and capabilities in nuclear engineering, combined with its longstanding relationship with EDF Energy, makes it the ideal partner to deliver the Lifetime Enterprise Agreement. The contract will enable us to continue to deliver the secure, reliable, low carbon electricity the UK needs now and into the future.”

The project has been valued at about £70million a year, and while there is no fixed duration the project could run for as much as 20 years.

Sustainable Nuclear Energy Conference 9–11 April 2014, Manchester, UK Registration now open Key themes include: ■ Social, economics and policy ■ Spent fuel strategy ■ Sustainability of the fuel cycle ■ End of life Visit www.icheme.org/snec2014 to view the full programme and register

ADVANCING CHEMICAL ENGINEERING WORLDWIDE C0171_13

2014 | spring — 21

in conversation ...

HITAchi–ge Nuclear energy ltd

Alastair Evans talks to Ken Sato, General Manager, Licensing, Hitachi Europe Ltd. for Hitachi-GE

22 — Spring | 2014

Some 16 months on from their purchase of Horizon, Hitachi’s name has already become synonymous with nuclear new build in the UK. Their subsidiary company – Hitachi-GE Nuclear Energy, Ltd. (Hitachi-GE) – is forging ahead as the Japanese giant progresses its UK nuclear activities.

Following the progression of their UK ABWR technology to Phase 2 of the Generic Design Assessment, and launch of the technology website.

So you’ve moved to Step 2 – I imagine you must be very pleased?

Yes, we’re very pleased to have taken this important step forward in the assessment of the UK ABWR. The Generic Design Assessment (GDA) is rightly a thorough and rigorous process, and each step forward is very rewarding. Though we’ve always been confident that the technology will progress well through GDA – let’s not forget that this is a proven operational technology – we are very pleased to see strong progress within the expected timeframe.

Clearly there are four operational ABWR units in Japan, but how will the UK version differ from these?

We are planning to deploy a proven design, which brings significant benefits in terms of reliability, predictability and construction planning. However, of course we learn from ongoing experience – including the lessons learned from the Fukushima incident – and it is incorporation of these lessons which will help form the detailed design of the UK ABWR.

You mention construction planning – as the FEED contractor to Horizon that must be a big issue for Hitachi-GE? Of course. Hitachi-GE is the Front End Engineering and Design, or FEED, contractor to Horizon and will later expect to sign an Engineering, Procurement & Construction (EPC) contract with them. We laid out our plans on supply chain engagement during the supplier days which we hosted in partnership with Horizon last year, and we will continue to provide updates to industry as we progress.

What does the route forward on GDA look like from here? What are the major steps and timescales?

Well we have made our initial submissions, and expect to provide further detail to the regulator as we progress through this year. We’d hope to move to Step 3 around the latter part of 2014 and believe that we can complete the GDA process around the end of 2017. However this is an assessment, and timescales will naturally ebb and flow as we work through the process with the regulators.

Clearly you’re a Japanese company, and this is a boiling water reactor. I’d imagine that reassuring the public on the safety of the design is important in light of Fukushima?

We understand that Fukushima has led to increased public scrutiny of proposed nuclear plants; however we’re equally confident that we can reassure people on the safety of the UK ABWR. The ABWR is a proven international design which draws on decades of operational experience, using redundant defencein-depth safety measures. The UK ABWR incorporates further lessons from Fukushima such as the potential for back-up buildings, additional watertight doors and buildings and extra emergency management systems. Most important however, is the fact that the UK regulators will now put the design through the most stringent possible assessment, and we will have to satisfy them that all aspects of the technology are suitable for deployment in the UK, but again, we are confident as we go through this process.

The GDA is a generic process and does not relate to any specific site, but you’ve built a Welsh language website – presumably this is focused on Wylfa Newydd, proposed by Horizon Nuclear Power?

The GDA doesn’t relate to any specific site, but the website and comment process are all about proactively communicating with anyone who may have an interest in the technology. Given the first planned deployment of the UK ABWR is on the Isle of Anglesey, we think it’s important that we make the effort to communicate with Welsh-speaking communities. Interestingly, around a third of the visits to some key pages of the website have been on the Welsh language side, so we’re really pleased with that engagement.

So presumably the communities around Horizon’s sites are pretty important for Hitachi-GE? The communities are very important to us. Horizon is the developer and will be the operator at these sites, so naturally they have more imbedded relationships – however through our work as a technology provider and lead-contractor we will work very closely with those communities. We’ve had a great reception so far, and we look forward to building those relationships through continued openness, transparency and cooperation.

Finally, tell me, what does the future hold for Hitachi-GE in the UK? In the short term we’re working very hard to take the UK ABWR through the early stages of GDA, and my colleagues in the supply chain team are in the very early stages of engaging with UK suppliers. Overall it’s still early days, but we’re happy with the progress we’ve made, and we’re becoming further integrated into the sector in the UK. In the longer term we will work hand-in-hand with Horizon to bring forward their plans at Wylfa Newydd and Oldbury, creating thousands of British jobs and supplying secure, sustainable and affordable energy to British homes and businesses.

The Twittersphere Away from the sacking of Piers Morgan, Justin Bieber’s arrest and the birth of Simon Cowell’s first child, #energy still remains one of the key topics of conversation in the ‘twittersphere’. To bolster the positive news on energy, the NIA has been using its handle @NIAUK to promote the various stories coming out of the UK’s civil #nuclear industry.

The major story of 2014 thus far has been the expected release of the European Commission’s interim report into the #Hinkley Point C State Aids case. Through various re-tweets and our own separate tweets, Twitter has been an excellent way to keep followers up to date with the news coming from the European Union, EDF Energy and the Government.

The NIA are also making a conscious effort to publicise our members various news stories. The account helped @SellafieldLtd update followers about the increased radioactivity detected by one of the in-air monitors on 31st January.

This was later attributed to naturally occurring background radon but it further proved how useful twitter can be as an up to the minute crisis communications tool.

Recently, we re-tweeted the news that @doosan_babcock had signed a contract with Who to follow? @edfenergy to support the Want information on nuclear operations of the energy and other relevant topics? company’s seven Advanced This issue we recommend you Gas Cooler Reactor power follow: stations. We want to continue promoting our members news stories so please get in @JeremyWNA touch to help tell the world @DECCgovuk about the great work being @urencogroup carried out in the British @edfehinkleyc #nuclear industry. @SellafieldLtd Since the last edition of Industry Link the NIA’s account has amassed over 330 new followers and this continues to grow each day. If you are not already, you can follow us @NIAUK and join in the #energy debate.

@CarolineFlintMP – there isn't a party political divide on #nuclear

@NIAUK

Tim Stone @EdelmanPR Energy prediction 'cheap, safe, low-carbon energy...must be the driver of energy policy' http://tinyurl.com/ od3krun Twitter Count Followers: 1,633 Tweets: 1,798

2014 | spring — 23

NEWS IN BRIEF

UK ABWR Justification Application published An important step has been taken in the UK's planned new nuclear build programme. The Department for Energy and Climate Change have published their consultation on the Regulatory Justification of the UK Advanced Boiling Water Reactor (UK ABWR). The submission was made by the NIA for the Secretary of State’s approval.

The Justification assessment must be carried out before new build of the UK ABWR commences and is a process required to meet the European Union’s Basic Safety Standards Directive.

The Justification process is generic and any site specific new build projects for the UK ABWR will require full regulatory approvals including those relating to safety, environmental and planning consents before they can go ahead.

NDA launch mentor scheme for SMEs

24 — Spring | 2014

How to feed in to the Justification Process and Further Information DECC will provide opportunities for comment on the Application and on its draft Decision Document. Check the DECC and NIA websites for further information on these consultations and their timing.

The full report report is available on both sites at: www.niauk.org/justificationapplication-uk-abwr and Available www.gov.uk/government/ online consultations/nuclear-industry now -association-application-tojustify-the-advanced-boilingwater-reactor The consultation will close on 13th May 2014. Submissions should be sent to: abwrjustification@decc.gsi.gov.uk

The Nuclear Decommissioning Authority (NDA) has launched a mentoring scheme for smaller businesses designed to help SME’s benefit from the opportunities in the UK’s nuclear decommissioning industry.

The ‘NDA Estate Mentor Scheme’ will see industry professional pair up with SME’s to offer support on securing work in the sector.

The scheme is free to participants and will initially run as a pilot for 12 months from April 2014.

Ron Gorham, the NDA's head of supply chain optimisation, said, “This scheme will help any small business with an interest in working on the NDA estate to understand how they can make themselves more effective in winning work and will give firms already involved in the supply chain advice on how they can boost the volume of orders on their books from our sites."

The NDA is keen to hear from people who wish to become involved in the project. To apply, you must be a qualified and experienced nuclear industry professional, whose expertise reflects the activities undertaken on the NDA estate.

£4 million investment in vital Doctoral training

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£

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The Centre for Nuclear Engineering based at Imperial College and made up of Imperial, the University of Cambridge and The Open University, has been awarded over £4million by the Engineering and Physical Sciences Research Council to set up a Centre for Doctoral training in Nuclear Engineering.

Building on world-leading modelling and experimental capabilities, the research performed in the ICO (Imperial Cambridge Open universities) nuclear energy centre will enable future reactors to be developed, new reactors to be built and operated to a higher safety standard and current reactors to operate for longer. At the same time ICO research will support the clean-up and decommissioning of the UK's contaminated nuclear sites and moves towards Geological Disposal in the UK and World-wide.

ICO research aims to place the UK at the forefront of international programmes on future reactors for electricity and civil marine power. By doing this it will provide highly skilled and trained cohorts of PhDs with a global vision and international outlook for the UK nuclear industry, regulators, Government and academia.

by. Paul Nicholson ⁄ nucleargraduates

Fourth Carbon Budget Review

T

In August 2013, Watts UP magazine was founded by myself and eight other graduates from the nuclear industry. Our business aims to promote the energy sector and the wide variety of jobs available to future graduates as a response to the high demand for young engineers and scientists. In April, we will be printing and distributing the first issue of our industry sponsored magazine.

Watts UP provides the energy sector with a platform to promote and discuss interesting projects and topics from across the entire energy sector, including in our dedicated nuclear section. Each section offers our sponsors the opportunity to advertise job opportunities to the future graduates from top UK universities.

The magazine is funded through industry adverts and advertorials. All profits will be donated to our official partner the National Energy Action charity whose aim is to eliminate fuel poverty within the UK. The last 8 months have seen our team wrestle with a steep learning curve, successfully managing our own finances as well as commercial, marketing and editorial operations. With the first issue now coming together, and our sights already set on expanding distribution to selected sixth-form colleges, the Watts UP team are excited by the successes so far and we look forward to working on September’s issue.

For more information and advertising opportunities please contact enquiries@wattsupmagazine.co.uk or visit our website at www.wattsupmagazine.co.uk.

he UK is the first country in the world to set itself legally binding ‘carbon budgets’. The government has set five annual budgets covering the period 2008 to 2050 outlining a strategy to achieve an 80% cut in emissions relative to 1990 levels by 2050. The fourth budget covers the years 2023 – 2027, with the view to reduce emissions by 50% to 1,950 Million tonnes of Carbon Dioxide equivalent (MtCO2e).

The Climate Change Committee has published their 2013 review of the Fourth Carbon Budget which the Government will review in 2014. The review suggests that no changes are to be made to the budget proposed in 2011; the ambition to reduce emissions by 50% by 2027 still stands. However The CCC have identified that the DECC baseline emissions projections used in the fourth carbon budget have since reduced as fluctuations in price around oil and gas projections will affect the level of emissions with regards to carbon budgets.

The fourth carbon budget suggested that by 2030 green house gas emissions would reduce to 1,950 MtCO2 across the 5 year period, however the review now suggests a best estimate of 1,690 MtCO2 is achievable in light of the changes to the original projections used in 2011. With this in mind the CCC believe a tightening of the budget could be recommended, though not at this time.

Today’s greenhouse gas emissions stand at 574 MtCO2e, by 2030 the climate change committee expect this number to reduce to 310 MtCO2e annually (a 60% reduction).

The CCC advised Parliament to legislate for domestic action which will place the UK on a feasible and cost-effective path towards the indicative 2030 and legislated 2050 targets, but the Government should be prepared to commit to a more ambitious ‘Global Offer’ budget, if and when a global deal covering action in the 2020s is agreed.

2014 | spring — 25

Energy consumption down by 8% between 2006 and 2012 in the EU28 the EU has been going through has had a serious impact on manufacturing as well as domestic use of energy. It can be reasonably assumed that as prosperity returns to some countries across the EU28, the usage figures will increase.

The report also looked at energy sources across the EU, finding that nuclear energy accounted for the largest share at 29%, followed by renewables 22%, solid fuels 21%, gas 17% and oil 10%.

Mtoe

Over the last two decades, gross energy consumption in the 28 Member States of the European Union (EU28), which stood at 1 670 million tonnes of oil equivalent (Mtoe) in 1990, peaked at 1,830 Mtoe in 2006 and then decreased to 1,680 Mtoe in 2012.

Between 2006 and 2012, gross energy consumption in the EU28 has fallen by a huge 8%.

In terms of the energy dependence rate - which shows the extent to which a country is dependent on energy imports – the average was 53% across the EU28 in 2012 – this was highest for Malta who import 100% of their energy.

Among the five Member States consuming the largest amounts of energy, the dependence rate was highest for Italy (81%), followed by Spain (73%), Germany (61%), France (48%) and the United Kingdom (42%).

While this report merely states the facts in terms of energy usage, it is obvious to all that a recession on the scale that

Gross inland energy consumption EU28

SME Opportunities in Decommissioning

November saw the largest and most successful NDA Estate Supply Chain Event ever, with around 1,300 visitors from the UK and overseas taking advantage of the face-to-face networking opportunities. 200 businesses took exhibition space, alongside information stands representing the NDA, all the SLCs, Top Tier 2 suppliers, Government bodies and regeneration organisations.

The event is part of a series of initiatives developed over the past two years to encourage and support the supply chain. These include a simplification of contract flowdown requirements, adopting HMG's Contract Finder as the single, web-based portal for forthcoming tendering opportunities, plus establishment of national and regional steering groups for Small and MediumSized Enterprises (SMEs).

The day was formally opened by Baroness Verma, Parliamentary Under-Secretary of State for the Department of Energy & Climate Change, who said: “I was impressed to see so many people at this event. I understand this is probably the largest of its kind in Europe. I have an SME background and under-

26 — Spring | 2014

stand the challenges and opportunities faced by businesses represented at this event. The fact that we had such a strong international presence shows us that the opportunities for this sector are not just limited to the UK.” Among the new features for 2013 were: →→ An innovation zone where leading-edge nuclear companies

showcased their technologies and presented case studies.

→→ An international seminar with nuclear experts from

other countries, who updated delegates on the overseas decommissioning market and opportunities that are available for UK companies. Representatives from Bulgaria, Romania, Switzerland, France, Spain, USA and Japan gave outlines of how UK companies might approach their markets.

For more information on this and future NDA Supply Chain Events contact info@decommsupplyevent.co.uk or visit the NDA webite www.nda.gov.uk.

State Aid Consultation E

uropean Commissioner for Competition, Joaquín Almunia, on behalf of The European Commission has opened an in- depth investigation, into the investment agreement between the British Government and EDF Energy for the Hinkley Point C nuclear new build project. The result of this investigation will determine the criteria according to which all similar investment contracts in the nuclear sector will be assessed.

The decision of the EC to launch the next phase of the investigation into Hinkley Point C shows that the inquiry is being carried out as planned according to the EU treaties and in time for a decision expected in the summer of 2014.

The Contract for Difference for Hinkley Point C, if given the green light by the EC, will pave the way for a new method of regulation in the energy sector that is necessary to incentivise investment in low-carbon technologies. It is significant for the UK and for the whole of Europe since it could give added impetus for current and planned nuclear new build in Europe for example in Poland, the Czech Republic, Romania, Bulgaria and Slovakia.

Energy Minister, Michael Fallon MP has stated that the, process is normal and has been built into UK planning for Hinkley Point C. EDF Energy explained that the deal was “the first example of a new kind of agreement to unlock investment in lowcarbon energy” and the company “will co-operate fully with the European Commission and UK Government as the investigation proceeds.”

The consultation will be published in the Official Journal of the European Union.

“ We’ll be using the consultation period to show that this project meets state aid rules, that it will cut carbon in Britain’s energy sector and improve our energy security in a way that’s good value for money.”

Michael Fallon MP Energy Minister

2014 | spring — 27

NEW NIA MEMBERS

Augean plc Augean is one of the leading providers of waste disposal services for V-LLW, LLW and NORM. Providing a combination of experience, outstanding processes and leading edge solutions to manage such wastes, Augean is the perfect strategic partner to offer: →→ Control burial of solid material up to a maximum of 200Bq/g →→ Thermal Treatment allowing for

recovery from waste

Black & Veatch Limited A global leader in building Critical Human Infrastructure™ in Energy, Water, Telecommunications and Government services. For more than 60 years, Black & Veatch has provided full-service nuclear power planning, engineering, procurement and construction capabilities to their clients and are able to provide reliable solutions for new build and operating nuclear power projects that span their entire life cycle.

Fixing Centre Ltd Specialist manufacturer of high performance anchoring solutions predominantly for the highway civils market; specifically vehicle restraint systems.

Linked to their specialist involvement with stainless steel materials in this sector they have always operated with an above average traceability requirement for their manufacturing processes and have QC-1 approval for manufacturing construction products with established quality standards and controls for the nuclear sector.

welcome

Kellogg Brown and Root Limited KBR is one of the world’s leading engineering, procurement and construction management companies with 27,000 employees in 70 countries.

Their UK offices opened in 1933 and today employ a workforce of 2,500 from their headquarters in Surrey. With a leading role in 5 of the largest 7 energy projects in the world they offer complex programme delivery expertise to the UK’s Nuclear New Build Programme.

KEPCO A state-owned utility company with a history of 116 years, KEPCO is responsible for the generation, transmission, distribution and sales of electric power in Korea with a workforce of 20,000 employees.

Today, KEPCO is positioning itself as a global utility in the fields of construction EPC, O&M, strategic investment and power sales through overseas business, including Barakah nuclear power plant project in UAE.

Innovate and Act CNIM UK Limited CNIM have been operating within the nuclear industry for over 40 years and have developed an enviable reputation for the supply of both hardware and design services for nuclear research, operating nuclear reactors, nuclear new build and decommissioning. Transferable skills from an extensive experience in the defence markets have served to broaden their skills base further and led to the establishment of large, comprehensive and modern manufacturing facilities.

Exelon Nuclear Partners Providing nuclear operations services in new plant development, performance improvement for existing nuclear plants and nuclear operating services.

Their services cover the full new plant development life cycle including technology selection; contracting support; licensing; engineering support; infrastructure planning; construction oversight; human resource development; training; plant operation.

Flexitallic Ltd Flexitallic is the developer of the spiral wound gasket and innovator of revolutionary products including Thermiculite®, Sigma® and recently the Flange Rescue Gasket and Change Gasket. Their global distribution network spans 30 countries, ensuring local demand is met quickly with a combination of the highest product quality and customer service.

K Home International Limited K Home International provides multidiscipline engineering design and project management solutions from concept to completion. Health, safety and environmental considerations are integrated within their design approach.

The company has a successful forty year track record, providing EPCM services to the Nuclear, Chemical, Petrochemical, Oil, Gas, Metals and Minerals industries.

Iberdrola Iberdrola is a global company with more than 100 years experience in energy development, security of supply, quality and innovation. It is one of the five largest private utilities in the world by market capitalisation, with activities in 40 countries, nearly 31,000 employees and around 32 million customers.

In the UK Iberdrola is one of the biggest energy companies through its subsidiary ScottishPower.

Kreab Gavin Anderson Kreab Gavin Anderson is a global consultancy providing corporate and financial communications and public affairs expertise to 500 clients through 25 offices worldwide. Their 400 consultants include substantial energy practices across the UK, Nordics, Asia-Pacific, Brussels, Europe and the Americas and senior in-house nuclear experience across new build, reprocessing, supply chain and decommissioning.

find out more about benefits of NIA membership at niauk.org/ membership-information 28 — Spring | 2014

OPINION

PowerPolitics “no-one wants the lights to go out, and the recent floods underline the potential risks of unchecked global warming!”

The big news since my last column is that, following more than a year’s debate in both Houses of Parliament, the Energy Bill has finally received Royal Assent. This means the legislation is now in place for electricity market reform to go forward.

As I write DECC, with the support of industry, are pursuing their detailed implementation plans, and are promising to bring forward secondary legislation shortly. Some important unresolved issues remain, but given the real political commitment to EMR on all sides these will surely be overcome quickly.

This is great news both for low carbon generators – nuclear; renewables; and carbon capture and storage – and for electricity consumers. As my colleague Alastair comments elsewhere in this issue our politicians, with their short term electoral cycle, occasionally forget they also need to protect the longer term interests of their electorate.

In this case, in backing the Energy Act that will provide a framework for secure clean electricity over many years, they have done so. Because of their higher up-front costs low carbon sources such as nuclear and renewables are difficult to finance in the current electricity market.

By providing stable and predictable prices over a set term, the EMR proposals will address this market failure, enabling the UK to deliver its energy security and low carbon objectives. This is crucial to all of us – no-one wants the lights to go out, and the recent floods underline the potential risks of unchecked global warming!

That said I was asked at a conference recently whether the Energy Act’s provisions would actually convince power generation and utility companies to make the necessary investment. My response was that it would – and I was able to pray in aid the Chinese interest in investing in the Hinkley project; Horizon/HGNE’s progression of the ABWR design through the Generic Design Assessment process; and Toshiba’s recent purchase of a 60% stake in NuGen. Taken together these developments, all of which involve major expenditure by the companies concerned, are a real vote of confidence.

Of course it is not all plain sailing.

Two years ago Mark Higson compared the new nuclear build journey as a giant rollercoaster – with violent ups and downs along the way – and this remains very much the case. We have already had both this year, including the ‘ups’ set out above.

A current ‘down’ is the vexed question of state aids clearance for the Hinkley CfD deal – on which the European Commission published its initial view (Opening Decision) at the end of January.

The Commission’s document, comprising 69 closely typed pages, raises a host of ‘legal’ issues, relating to such arcane matters as whether the UK has a ‘market failure’, and whether, if it does, the CfD arrangements are the best means of addressing this.

The British Government and nuclear industry have firmly pointed out that the EMR measures are designed to help

achieve the EU’s security of supply and carbon reduction objectives, and that they are compliant with EU rules. They have a very strong case, but there is a detailed process to be gone through.

Joaquin Almunia (the EU Competition Commissioner) has indicated he wants to see the investigation concluded before the end of the current EU Commission term in October 2014, and there is ‘optimism it will be completed by summer 2014’. It is important that this timetable is kept to, not just because the current Commission will leave office at the end of the year but because we need to make progress on our new nuclear build programme and the UK supply chain is itching to get started.

In this context it is interesting that in its recent consultation on draft guidelines for environmental and energy state aid the Commission stated that for renewables (and CCS) support is justified to meet the common good of mitigating climate change. Nuclear is not mentioned, but if mitigating climate change is the objective it surely makes sense for the Commission to support a member state – such as the UK – that has developed a technology neutral approach to achieve this.

Peter Haslam Head of Policy NIA peter.haslam@niauk.org

2014 | spring — 29

30 — Spring | 2014