Industry Link - December 2012

NUCLEAR NEW BUILD WILL PROVIDE 30,000 JOBS AT ITS PEAK. THIS IS A HUGE OPPORTUNITY FOR THE ENGINEERS OF THE FUTURE AND IN THIS EDITION WE FOCUS ON THE SKILLS THAT ARE REQUIRED TO MEET THIS CHALLENGE

MAGAZINE OF THE UK NUCLEAR INDUSTRY ASSOCIATION WINTER / 2012

NIA.ORG

SMRs The Next Big Thing HITACHI OUTLINE NEW NUCLEAR INVESTMENT Opportunity Knocks for NNL 22

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DELIVERING A NUCLEAR FUTURE FOR THE UK 9

Welcome to IndustryLink

SNAPSHOT

Alastair Evans Alastair.Evans@niauk.org

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

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

Nuclear Industry Association is a company limited by guarantee registered in England No. 2804518

Press Enquiries Kirsty.Alexander@niauk.org TEL 07952 545 355

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

Alastair.Evans@niauk.org TEL 07894 595 718

Contributors Alastair Evans, Peter Haslam, Keith Parker, Rupert Lewis, Dan Powney, Hannah Grimsley, Kirsty Alexander Chris Savage, Adrian Bull – NNL, Sir David King, Mary Kinsella – NSAN, Gareth Davies – Burges Salmon, Hayley Charlesworth – Smallpiece Trust, Andrew Renton – Bird & Bird, Mary Kinsella – NSAN Design and Creative Direction thomasmatthews.com

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IN VIEW

HITACHI OUTLINE NEW NUCLEAR INVESTMENT PROGRAMME PAGE 2

MAIN FEATURE

Hannah.Grimsley@niauk.org TEL 07894 595 717

Follow us: @NIAUK

OPINION

“ The political decisions on waste disposal must be based on the best science”

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Cover image: GEN II Engineering Apprentices Working at ENERGUS Training Centre © GENII — www.gen2training.co.uk

December 2012 is an extremely exciting time to be involved in the nuclear world. We have seen the fantastic vote of confidence in the UK market, and our wider supply chain, through the near £700 million purchase of the Horizon Nuclear Project by Hitachi. We are also expecting the Final Investment Decision on Hinkley Point C by EDF Energy and Centrica, which will be another step forward on the road to a fleet of new reactors being built across Britain.

Sir David King makes his argument for the Geological Disposal Facility in this edition of the magazine. The GDF will provide a long-term solution to high level radioactive waste in the UK, and Sir David makes an excellent case for the Government’s voluntarism approach. This edition also provides an update on progress that is being made on research and development, as well as the announcement of a £1.1billion contract at Sellafield.

Many of you will be reading this quarter’s edition at the flagship Energy Choices Conference where we will be hearing from Energy Minister John Hayes MP and Minister of State for Business and Enterprise Michael Fallon MP. This year’s event has brought together a wealth of industry experience, and you can look forward to a full review of the conference in the next edition of IndustryLink.

BRITISH UNIVERSITIES TO LEAD ON RISK RESEARCH

Hitachi Outline New Nuclear Investment Programme

“ This is a decades-long multibillion vote of confidence in the UK that w contribute vital new infrastructure our economy. It will support up to jobs during construction and thou more permanent highly skilled role David Cameron Prime Minister

The industry has recently been buoyed by the announcement that Horizon Nuclear Power will be bought by Hitachi Limited. The move ends some seven months of uncertainty for Horizon, and marks a substantial boost to the UK new build programme.

Commenting on the announcement, NIA Chief Executive Keith Parker said: “The sale of Horizon is a great boost for the UK new build programme, for the UK economy and for the UK nuclear industry”.

Horizon was put up for sale in March by E.ON and RWE, and Hitachi’s £696million investment in the company shows huge faith and confidence in the UK market.

Horizon COO Alan Raymant said: “This is truly excellent news and marks the opening of an exciting new chapter for Horizon. Hitachi has a proven international track record in the engineering and construction of nuclear power stations which they are bringing to the UK through their investment in Horizon Nuclear Power.”

The new owners now intend to submit their Advanced Boiling Water Reactor (ABWR) design for Generic Design Assessment (GDA).

The ABWR is the most advanced technology currently operational anywhere in the world, with four units currently generating in Japan. It is also licensed in the USA and Taiwan.

It has been built to time, cost and quality, which provides welcome reassurance to the delivery of the UK

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new build programme. At the time of the announcement, Hitachi commented that they were hopeful the first reactor could become operational in the first half of the 2020’s.

Raymant went on: “Horizon will bring forward site development plans for up to three reactors at each of their sites at Wylfa and Oldbury. Clearly we are in the very early days of our new ownership. We will take time to develop our programme to make sure it is robust and can be delivered successfully. We look forward to sharing further detail on our plans as soon as we can”.

Discussing the long-term role of Horizon, Raymant was clear that the company will need to develop its capabilities as an owner and operator of nuclear power plants in the years ahead. He said: “Horizon will build its organisational capabilities in parallel with development of the sites, ready to take on the responsibilities of a nuclear site licensee. We do not underestimate the scale of the task ahead of us, nor the opportunities it will bring”.

What is already clear is that the economic opportunities outlined in this announcement are huge. Hitachi has said that it expects approximately 60% by value of the first unit will be spent on locally sourced materials, personnel and services, with the potential for this to rise for subsequent units”.

Hitachi intends to: “invest in transferring its modular construction technology which underpins the build timetable, establishing a module

assembly facility in the UK”. This emphasizes the major role which Hitachi sees for the UK supply chain in Horizon’s projects at Wylfa and Oldbury.

Acknowledging the scale of the opportunity, Keith Parker said: “The NIA’s forthcoming Supply Chain Capability Report demonstrates the potential the UK has, but also highlights the key steps needed to ensure the UK can take maximum benefit”.

In the short-term, Horizon will take time to assess its options and clarify the next steps in the development programme. “But for now, we are delighted to be able to resume the development of our business. Our determination to deliver our projects has not wavered” said Raymant.

“We have a team of people ready to do just that and we can now work with Hitachi, one of the world’s leading engineering and manufacturing companies, to deliver these aims; bringing energy security and economic opportunities to the UK”.

n pound will e to power o 12,000 usands es.”

FURTHER INFORMATION For more information about Horizon; tristram.denton@horizonnuclearpower.com To register interest in becoming a supplier to the project; suppliers@horizonnuclearpower.com

Horizon Chief Operating Officer, Alan Raymant, with Mr Tatsuro Ishizuka, Vice President and Executive Officer President & CEO Power Systems Company of Hitachi.

Advanced Boiling Water Reactor

→→Horizon was formed in January 2009. It’s headquartered in Gloucestershire, with sites at Wylfa on the Isle of Anglesey, and Oldbury in South Gloucestrshire. →→Horizon has around 100 staff, and over three years of data and learnings. →→The ABWR can generate around 1,300MW of electricity. If three reactors were built at each site, that would produce an overall output of 7,800MW. →→Horizon aims to have its first unit at Wylfa operational within the first half of the 2020’s. →→Hitachi believes that up to 60% by value of the first unit could be sourced from the UK, with that number set to increase for later units. →→Hitachi have agreed an MOU with Rolls-Royce and Babcock International Group to advise and assist with the GDA process. →→The Hitachi power business has interests across the nuclear, renewable and thermal power sectors.

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Investment in major infrastructure projects

In the News

BY. KEITH PARKER

Investment in major infrastructure projects is widely seen as a route to reviving economic growth and stimulating job creation in times of economic strain. Just before the CBI Annual Conference at the end of November, the director-general, John Cridland, urged the Chancellor to fast-track a handful of major infrastructure projects to create an “industrial Olympics” and speed up growth. One of the schemes he highlighted was a new nuclear power station.

Nuclear projects – in decommissioning as well as in new build – are indeed among the largest capital projects in the UK. Last month Sellafield awarded a £280 million contract for Multi-Discipline Site Works. The total annual spend in the supply chain from the NDA’s estate is now over £1.5 billion, and includes major capital builds, as well as plant demolition and decommissioning.

The overall investment associated with the Government’s reforms to the electricity market - which involve stimulating an estimated £110 billion of new investment in the electricity generation and transmission sectors by 2020 - has the potential to support around 250,000 jobs in the power sector.

A 16GW programme of new nuclear build entails investment of around £60 billion in the period to around 2030. That scale of new build could boost UK GDP by up to 0.34% per year (equivalent to £5.1 billion in 2011) for 15 years, according to a report by IPPR earlier this year.

Confidence and certainty are important ingredients for companies planning future investments. But these commodities have been in short supply in recent years.

The global economic downturn precipitated by the banking collapse of 2008, the current Euro zone crisis, and a doubledip recession at home have all combined to create economic uncertainty and reduce business confidence.

In our own sector, doubts and concerns about the future of nuclear in the UK arose as a result of the disaster at Fukushima, and the subsequent withdrawal of E.ON and RWE from their Horizon joint venture following Germany’s decision to phase-out nuclear power. Despite these setbacks the strong public and political support for nuclear in this country has held firm. Progress continues to be made towards the final investment decision for Hinkley Point C, and the announcement of the sale of Horizon to Hitachi has provided a significant boost to confidence, and a greater degree of certainty that a new build programme will go ahead.

The scale of investment in nuclear will create huge opportunities for companies in Britain with long experience and expertise in construction, in manufacturing, in advanced engineering, in project and programme management, in consultancy and in financial and legal services. The industry is working hard to build on its strengths and develop the skilled workforce and the capable nuclear supply chain that can deliver both at home and overseas.

This year’s NIA Energy Choices conference will see major announcements by the industry and Government of initiatives designed to support the nuclear supply chain, encourage investment, and provide the confidence and certainty to enable the nuclear industry to grasp those opportunities and make its major contribution to meeting the UK’s future energy, industrial and economic needs.

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On Tuesday 30th October it was announced that Hitachi had acquired the Horizon Nuclear Power programme from RWE and E.ON in a deal worth £696 million. There was significant press coverage of this fantastic news and many of us awoke to Secretary of State Edward Davey on the Radio 4 Today Programme hailing the Hitachi investment as a vote of confidence in EMR and the Energy Bill.

Keith Parker was extremely busy throughout the day appearing on BBC Radio Wales twice, firstly to discuss the supply chain opportunities around Wylfa and later to discuss the deal in more detail. Keith was also interviewed on Radio 5 Live and finally on the BBC Radio 2 Drive-Time show.

The Prime Minister David Cameron commented: “This is a decades-long, multi-billion pound vote of confidence in the UK that will contribute vital new infrastructure to power our economy. It will support up to 12,000 jobs during construction and thousands more permanent highly skilled roles once the new power plants are operational, as well as stimulating exciting new industrial investments in the UK's nuclear supply chain."

Secretary of State for Wales, David Jones underlined the UK Government's continued commitment to the nuclear industry during a visit to Wylfa on 13th September. Making his first official visit to the site since his promotion to the Cabinet, Mr Jones stated that nuclear power continues to play a vital role in the UK's energy mix and that a new station on Anglesey would bring a real economic boost to North Wales.

Kirsty Alexander was interviewed by Deutschlandradio in August on attitudes towards nuclear power in the UK and Germany, and whether the strike price for nuclear will be so high as to make nuclear untenable. Kirsty spoke about the high public support for nuclear in the UK and praised the Government’s measured response following Fukushima.

The joint letter from NIA, Renewable UK and the CCSA to Ed Davey in support of the Energy Bill generated high profile positive press coverage across all of the main national newspapers (including the FT, Times, Independent, Telegraph, and Guardian). DECC welcomed the letter, as did Greenpeace and Friends of the Earth.

Keith Parker was quoted in Emily Gosden’s article printed in the Daily Telegraph about the UK’s nuclear energy future.

Keith spoke optimistically about the future and insisted that “all indications are” that EDF will go ahead with their new nuclear plans.

The BBC aired an Inside Out Special about the proposed Geological Disposal Facility in West Cumbria. The programme closely scrutinised the government’s voluntarism approach and weighed up the debate between the enormous economic and community benefits against a number of issues highlighted by local environmentalists.

Bright Future for Anglesey As a region, Anglesey & North West Wales has the potential to be a global powerhouse, at the forefront of the low carbon energy sector, bringing with it potentially huge economic rewards for generations to come.

The Anglesey Energy Island Programme has been set up as a collective effort between the public and private sector. Not only does the programme work to ensure that low carbon energy developers invest in an area (which has recently been awarded Enterprise Zone status) but also helps develop potential job opportunities and focuses on re-skilling local people.

Potential developments include: → Horizon Nuclear Power – a new nuclear power station at Wylfa, North Anglesey, with generating capacity of around 3.3GW of Low Carbon Energy; → Celtic Array – Rhiannon Off-shore Wind Farm, located in the Irish Sea some 19km north east of the Isle of Anglesey, a potential yield of 4.2GW of Renewable Energy; → Marine Current Turbines - proposed Tidal Array between the Skerries and Carmel Head, North Anglesey, producing 10MW of Renewable Energy; → Lateral Power – proposed 299MW Biomass/Eco Park at the former Anglesey Aluminium site providing Energy & Steam for Hydroponic & Aquaculture Enterprises.

Dr John Idris Jones, the Energy Island Programme Director said: “A study by URS shows that new jobs in these low carbon energy development projects could potentially help contribute £2.34 billion to the region’s economy over the next 15 years, bringing major economic, social and environmental benefits”.

To ensure engagement and communication of the upcoming opportunities the Energy Island Programme (EIP) works with partner organisations to organise events and workshops promoting and educating young people on possible career

paths. This also provides support for teachers to raise the awareness of Science, Technology, Engineering and Maths (STEM), stimulating primary school children and making their education relevant to the 21st century.

The EIP also aims to attract young people who have sought higher education elsewhere back to Anglesey. Tom Hurford, an RWE npower graduate working for Horizon Nuclear Power said “New investment on Anglesey will bring with it a huge range of opportunities for local people, being able to return to my home town to work after graduating was something that I never thought I would be able to do. It’s nice to see that the EIP doesn’t just concentrate on attracting investments but also invests in the next generation of energy sector workers and educating through careers events”.

Dr Idris Jones added: “The programme works hard to attract investment and offer opportunities to the young people of Anglesey and North West Wales. We’ve recently partnered with Gwynedd Council, the Welsh Government, Horizon Nuclear Power, Bangor University and Coleg Menai to facilitate a ‘skills pipeline’ for the future low carbon industry in the region. This partnership led to the establishment of Cwmni Prentis Menai in 2011 (an arm’s length company of Coleg Menai) which acts as an employment agency for apprentices who otherwise would not get any employment opportunities. Local companies have the opportunity to grown their workforce with these young people at a time of economic uncertainty. The aim is to bring low carbon energy investment to the island, to invest and sustain our communities for the future”.

For more information on the Energy Island Programme visit www.angleseyenergyisland.co.uk, or contact Linda Wyn Jones on 01248 752431 or econdev@anglesey.gov.uk

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WORLD NEWS

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China plans a ‘steady’ return to full-scale nuclear build After the Fukushima Daiichi accident in March 2011, China decided to halt approvals for new reactors until a stringent safety plan was in place.

However, in late October it was announced by Premier Wen Jiabao that China will “steadily return to normal construction” of new nuclear plants.

This 12th Five Year Plan, officially running from 2011-15 will call for a “small number” of nuclear projects to be approved.

In relative terms this is a much smaller rate of construction compared to the nine new reactors commissioned in 2009 and the ten in 2010 and Premier Wen did not say when the first new approvals would come.

Indications are that only coastal sites will be approved, further delaying inland projects at Taohuajiang, Xianning and Pengze, where construction was expected to begin before 2015.

Furthermore, only Generation-III designs will be approved, meaning the CPR-1000 design will not be satisfactory but EPR and AP1000 reactors will be.

Premier Wen made clear that China plans to broaden overseas relationships and strengthen nuclear safety through “social supervision and supervision by public opinion”.

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Rolls-Royce Export Success Rolls-Royce has been awarded a contract by China Guangdong Nuclear Power Corporation (CGNPC) to provide a range of digital safety equipment. The contract includes orders at units 1 and 2 of the Ling Ao Power Plant (LANPP) in Guangdong province.

The Rolls-Royce Group provides safety-critical instrumentation and control systems to 70% of China's civil nuclear reactors that are in operation or under construction, to all 58 of France's operational nuclear reactors and to more than 200 nuclear reactors across 20 countries worldwide.

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Fossil fuel consumption in Japan at historic high The ‘US Energy Information Administration’ have produced figures based on Bloomberg data that show as nuclear power production has dwindled in Japan, it has been LNG that has grown to fill the gap. Use of that fuel in January to April 2012 is up 34% on the same period in 2011, making Japan the world's biggest LNG consumer.

The other fuel to step in to replace nuclear power has been petroleum crude oil and heavy oil. Use of these has doubled since February 2011 and is at its highest level since February 2008.

Fossil fuels now provide some 90% of Japan's electricity compared to 64% for the same period in 2011. Historically, nuclear power has normally provided about 30%.

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“France needs more electricity, not less nuclear” France is about to embark on an ‘energy transition’ debate following the election of President Francois Hollande in May 2012. Mr Hollande pledged to reduce the share of nuclear energy in the mix to about 50% by 2025 Nuclear currently makes up 75% of the energy mix from 58 reactors across France and domestic electricity prices in France are 35% lower than the European average.

CEO of Electricité de France Henri Proglio asserted that power demand in France could increase by 40% by 2025, automatically reducing the nuclear share significantly.

The energy debate will take place from November 2012 to April 2013.

BY MARY KINSELLA, NATIONAL SKILLS ACADEMY FOR NUCLEAR

Manufacturing for Nuclear

eputy Prime Minister Nick Clegg MP at the launch of the National Skills D Academy for Nuclear Manufacturing.

L

aunched by the Deputy Prime Minister Nick Clegg MP in September 2012, the National Skills Academy for Nuclear Manufacturing is an expansion of the National Skills Academy for Nuclear, and as such will play an important part in the Skills Academy’s remit as the lead strategic skills body for the nuclear industry.

Specifically focussing on UK manufacturing companies either supplying, or looking to supply the nuclear industry, the NSA Nuclear Manufacturing will work to grow and upskill the UK nuclear manufacturing supply chain to increase their ability to win tenders in UK and overseas nuclear markets.

The National Skills Academy Nuclear Manufacturing is a collaborative effort bringing together the individual strengths of the Sector Skills Council Semta, the Nuclear Advanced Manufacturing Research Centre and the National Skills Academy Nuclear as the lead partner.

Bringing these three bodies together in this way maximises impact and value through a joint offer that builds on the manufacturing and skills excellence developed to meet the specific needs of the nuclear industry with a focus on quality and safety culture.

Dawn Vinall, Business Development Manager of the NSA Nuclear Manufacturing highlights; “To successfully win tenders in the nuclear sector, manufacturers need to be able to demonstrate that their workforce has the skills and

experience required to meet the requirements identified in tenders. This is challenging, especially for potential new entrants to the supply chain. As the new build programme gains momentum in the UK and internationally, it is essential that the supply chain is supported to win contracts.

The NSA Nuclear Manufacturing will offer this support to manufacturers by providing a single point of contact for advice and guidance about the skills required to manufacture for the nuclear programme.”

Research completed during the business planning stage demonstrated that UK manufacturers have the capability to supply a significant percentage of the specialist components for nuclear new build, but only with SME involvement, world class R & D, training and development and excellence in the delivery of provision.

The planned nuclear new build is presents UK manufacturers with a huge business opportunity, as the potential economic value of the supply chain opportunity for each new nuclear build power plant is £1.5bn.

In order to meet the timescales identified for new nuclear build, the NSA Nuclear Manufacturing will aid in the mapping of skills capacity and capability of manufacturing organisations to ensure that the peaks and troughs of demand are identified and accommodated. The potential demand for manufacturing skills that nuclear contracts could place on manufacturing organisations requires careful planning due to the significant volume of people needed across a range of skills and occupations.

One of the major challenges identified for manufacturers is nuclear awareness and the safety training requirements associated with working under a regulated nuclear site licence from the outset of construction. In addition, long induction periods are required for some critical skills due to the levels of education, training and competence required for nuclear contracts.

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The NSA Nuclear Manufacturing will aid manufacturers in preparation to address the capability and capacity skills gaps, but also to demonstrate their skills in nuclear awareness, behaviour & culture and suitable qualifications & experience.

The Skills Academy offers the best solutions from the three partner organisations (NSA Nuclear, Semta and Nuclear AMRC) in terms of expertise, products and services, employer networks and learning; building on the investment made to date by both the Government and industry. Members of the NSA Nuclear Manufacturing will gain access to a range of support tools, developed by each of the key partners including; →→ The Nuclear Skills Passport –aiding organisations to

Jean Llewellyn OBE, Chief Executive of the NSA Nuclear Manufacturing and NSA Nuclear commented; “The National Skills Academy Nuclear Manufacturing will support the maximisation of nuclear opportunities for the UK manufacturing industry in both the UK and globally, delivering the skills requirements companies need to grow their current market share. Complementing this will be the delivery of engineering and manufacturing training to provide high quality longterm careers for people in this market. This is a fantastic opportunity for manufacturing organisations to join or grow their market share of the nuclear supply chain, I would urge organisations to get involved early.”

demonstrate their excellence in skills for nuclear. →→ Nuclear AMRC Nuclear Connections and Fit for Nuclear

enabling manufacturers to assess their capability to supply to the nuclear sector. →→ Semta Business Planning Tool – supporting manufacturers to plan the whole of their skills development cycle from business objectives, through to agreeing training priorities and desired return on investment.

The Skills Academy is working with organisations on the development of high priority training and skills development services that are closely matched to the immediate and future needs of manufacturing companies who wish to move into or increase their market share of the nuclear opportunity.

Nuclear Engineering Services Limited (NES) became the first member of the newly established NSA Nuclear Manufacturing. NES specialise in the integrated design, manufacture, assembly, test and commissioning of bespoke solutions for the nuclear decommissioning, new build and defence markets.

NES Finance Director, Chris Bill commented; “NES are delighted to be involved with the National Skills Academy for Nuclear Manufacturing. Creating a workforce to meet the demands of the current and future UK nuclear programme is something NES are extremely keen to support.”

Kim Thorneywork, Chief Executive of the Skills Funding Agency, which has provided development funding to match employer funding for the first three years of business said: “It is vital that employers are supported in finding real solutions to tackle skills gaps in their sectors and the National Skills Academy for Nuclear Manufacturing will help achieve this.

Skills are the essential key to unlock economic growth.

The Skills Funding Agency and the further education sector as a whole are committed to supporting the manufacturing sector in its drive to raise skills levels. This initiative provides an opportunity for real collaboration across the Nuclear and Manufacturing sectors. We are pleased to support it.”

eet the NSAN Manufacturing Team – (left to right) Training and Skills M Development Manager Annette Valentine, Business Development Managers Dawn Vinall and Peter Faccenda and Team Co-ordinator Stacey Balmer

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ES membership plaque presentation - (left to right) Jean Llewellyn, CEO N of the NSA Nuclear & NSA Nuclear Manufacturing, Chris Bill, NES Finance Director and Anthony Cundall, NES Head of Nuclear New-Build.

Delivering a Nuclear Future for the UK

THE NIA REPORT CAPABILITY OF THE UK NUCLEAR NEW BUILD SUPPLY CHAIN WILL BE LAUNCHED ON DECEMBER 6TH AT ENERGY CHOICES AND AFTER WILL BE AVAILABLE AT NIAUK.ORG

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Q 123412341234123412341234123412341234123412341234123412341234

Hinkley Point C Unit 1 Hinkley Point C Unit 2 Wylfa Sizewell C Unit 1 Sizewell C Unit 2 Moorside Oldbury

NIA Assumed Programme

generator are very large and specialised pieces of equipment that can be manufactured by only a few companies in the world.

That still leaves a very large volume of work for which British companies can compete. Much of it will be very hightech and high-value business. But it goes right through the spectrum to small local companies providing goods and services for the construction workforce and ultimately supporting the day to day needs of the plant when it reaches its operating phase.

A large amount of the work for a nuclear plant will be delivered on site, including all of the construction activities and mechanical and electrical installation. By its very nature, this creates opportunities for UK companies and, with a peak workforce of 5,600 on site for each project it is a challenging operation in itself. Although a certain amount of the workforce, from senior engineering through to construction operatives, will move from project to project, the construction projects will also generate significant employment and opportunities for local businesses.

At the top of the supply chain, most of the companies will be experienced international players, already competing in global markets. Many of

70,000 60,000 50,000 40,000 30,000

Number of People

The UK nuclear new build programme offers a huge opportunity to boost jobs and economic activity, creating 30,000 jobs at the peak of the programme.

Opportunities for British companies will be created across the supply chain, not just in the sectors regarded as specialised nuclear equipment but in the engineering disciplines required for all large infrastructure projects. We can also expect significant interest in manufacturing and installation of a wide range of mechanical and electrical equipment, and in providing technical and support services.

The scale of the opportunity and the potential for UK firms are set out in a new NIA report on the capability of the UK supply chain. Prepared by a group of industry experts and guided by a team comprising the developers, technology vendors and contractors, the report provides a detailed and authoritative assessment of the prize for UK firms.

The fact that there has been a gap of more than two decades in the UK’s new nuclear programme means that there is no domestic reactor design, nor is there the manufacturing capability to supply key elements of the specialised equipment that makes up the reactor or nuclear island. The reactor pressure vessel, steam generator and turbine

35,000

30,000

25,000

20,000

15,000

10,000

5,000

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GRAND totals

Civils

Onsite total

Onsite Mechanical

Manufacturing

Onsite CE&I Commissioning

Workforce Projection NIA Assumed Programme

the UK companies will be operating in partnerships with other large companies from overseas, as is the norm in these major infrastructure projects.

The potential prize for the UK from the nuclear renaissance is enormous by any standards, but companies know perfectly well that their chances of winning work will depend on their ability to compete on quality, reliability and cost. Although not every part of a nuclear plant will have to meet the quality specifications of the nuclear island, all firms will have to demonstrate that they have adopted and can reliably deliver the culture and behaviours of quality and safety that are demanded throughout a nuclear plant.

The build-up of resources for the nuclear programme is beginning but it has a long way to go. UK companies have increased their awareness of the opportunities and the requirements for the programme. They need to gear up their readiness to deliver in terms of quality and reliability so that they can compete successfully. And across the board there will be a need for a growth in capacity and resources.

20,000

CHRIS SAVAGE

10,000

Consultant Project Management

0 2012

2013

2014

2015

2016

2017

2018

2019

Current Operations

Current NDA Sites

New Build Contruction

New Build Operations

2020

2021

2022

2023

Current NDA-Contractors

2024

2025

chris.savage@niauk.org

Defence

Nuclear Industry Employment with New Build

2012 | WINTER — 9

Evidence Based Decision Needed on Future of GDF

D

uring my time as Chief Scientific Adviser to the UK Government I commissioned a review of the UK’s energy outlook. My concerns at the time were based on the fact that the UK was then ill prepared to meet future energy demand and that we needed another generation of nuclear power stations. While this view was not initially shared by the then Government in the 2003 Energy White Paper it soon became apparent that in order to meet our 60% and now 80% reduction in CO2 emissions by 2050, then nuclear energy has a vital role to play.

At the time of my intervention, the UK’s nuclear strategy was not considered to be economically viable and was more focused on dealing with the legacy of facilities, used nuclear fuel and radioactive waste from the early days of nuclear development and the operation of previous generations of reactors and their associated fuel cycles. As the UK now moves towards a new generation of nuclear reactors it is vital we reframe this strategy in the context of the government’s policy to decarbonise electricity production, and to provide a secure and affordable supply. There is a compelling case for electricity to be produced within the UK from a combination of renewables and nuclear energy, all produced within the UK, independent of external fuel suppliers.

As I advised the government on the development of its new nuclear policy, it was clear that progress on the solution to the waste 'problem' was already long overdue. Successive governments had tried and failed to solve the long term policy issues surrounding the management of radioactive wastes.

What we saw in those years was not a failure of science, but of politics and processes where it was easier to make no decision than a decision. It also suited some that delaying any decision on the waste issue also meant that any decision on new nuclear could be pushed into the long grass.

The Government is committed to geological disposal of higher activity radioactive waste,

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coupled with safe and secure interim storage and a geological disposal facility siting process based on voluntarism and partnership.

The process of 'voluntarism' is the right way forward, but this has never meant that an area could volunteer for the creation of a repository in a geological area that is not deemed to be optimal.

Nobody in Copeland, Cumbria or Westminster - or across the scientific community - would support this. It is essential that all of the facts are known before decisions are made. The recent media attention on whether West Cumbria should or should not proceed on the investigation of a geological disposal site was curious. Why would anyone wish to block a detailed analysis from being conducted into the suitability of the site?

The search of west Cumbria's geology must proceed. To abort the process now before all the facts are to hand would be short-sighted. When we have all the evidence a decision can be made. I can appreciate that there are those that may feel this might be seen as a force majeure, simply by exploring the feasibility of a disposal facility. But we need to assess the facts before making a decision that is right for the local community as much for the safe geological disposal of nuclear waste.

The implementation of a final policy solution for radioactive waste in Britain is long overdue, and is needed for a coherent, credible energy policy.

If we don’t manage the legacy issue with the best science this in itself could hinder nuclear new build.

And that is something we cannot afford to happen, particularly given the progress that has been made in recent months.

The political decisions on waste disposal must be based on the best science. After all we have been through on nuclear energy there is one lesson we should all learn from. A clear decision based on the very best evidence - now that would be something.

BY. SIR DAVID KING

2012 | WINTER — 11

All images: Geological Disposal Facility, Finland © Posiva Oy — www.posiva.fi

The National Nuclear Laboratory (NNL) has awarded AMEC a multi-million pound contract to project manage, the refurbishment of the NNL’s ‘Active Handling Facility’ over the next five-years.

The project involves the refurbishment of the facility to ensure it remains fit for commercial operations for another twenty years.

NNL’s Head of Facilities, Keith Johnson, added, “I am delighted that AMEC is supporting us on this project… Our Active Handling Facility is right at the heart of experimental work we deliver to a range of key customers. The work supports both continued safe operation of the UK’s existing nuclear reactors, as well as the effective management of the UK’s waste and decommissioning programme”.

NAO report on managing risk reduction at Sellafield The National Audit Office (NAO) have published a report on managing risk at Sellafield. The report highlights the considerable challenges faced by the NDA in cleaning up Sellafield.

Whilst it notes that the performance of some of the major projects underway have fallen below expectations it notes that NDA are taking appropriate steps to improve matters, and that progress has been made in developing a strategy to deal with the legacy. NDA have welcomed the report as a useful external check on progress.

You can read the report in full at www.nao.org.uk/ publications/1213/sellafield_risk_reduction.aspx

12 — WINTER | 2012

Will.i.am fronts contest to inspire young innovators Musician, songwriter and world renowned producer will.i.am has teamed up with digital experts, Time Warner Cable to inspire young innovators with the ‘Connect A Million Minds initiative, Wouldn’t it Be Cool If…’ competition.

Announced at the White House Science Fair, the contest has been set up to challenge students between the ages of 10 and 15 to come up with imaginative innovations. Early entries have ranged from the practical to the extraordinary. Examples include; waterproof phone cases, fuel-efficient cars, a pen that writes what you think and many more.

Introducing the competition, will.i.am explained to entrants, “I need you to come up with some crazy ideas that (will) change your community or the world, because it’s you that (will) be running the world 20 years from now”.

Finalists will be flown to Missouri to pitch their ideas to will.i.am and Dean Kamen, founder of the FIRST robotics high-school competition. The winning product will be developed by Fahrenheit 212, a consulting firm who work to get new inventions manufactured. We hope that energy and electricity are considered by the inventors of the future!

Darchem Boosted by Regional Growth Fund

Esterline subsidary, Darchem Engineering has announced an £8million investment in its manufacturing base in Stockton-on-Tees.

Supported by £1 million from the Government’s Regional Growth Fund the investment will safeguard 29 posts and the 86 new roles created will focus upon metal fabrication and welding.

Darchem’s successful regional growth fund bid was said to have excellently demonstrated the company’s world class expertise and its extraordinary levels of production. The company have been praised for their ambition and dedication to the area with work due to begin on the new facility as soon as possible.

Darchem Engineering, Managing Director, Graham Payne, explained the reasons for expansion in this specific area of the country, “We have decided to expand our business base here as the local authority and Tees Valley Unlimited have very pro-business attitudes. The local workforce is highly skilled and has a good work ethic.”

Deputy Prime Minister, Nick Clegg heaped praise on BIS’s Regional Growth Fund, explaining, “86 new jobs in excellent news for Stockton.

This £1 million investment in Darchem’s plant is precisely why we set up the Regional Growth Fund – to unlock the private sector funding that creates jobs and boosts local economic growth.”

Work is due to begin on the factory at the end of this year on a brownfield site parallel to the Stockton base. The project is scheduled to be finished by late 2013.

2011 Walmart Shareholders Meeting © Walmart Corporate — www.walmartstores.com

AMEC awarded NNL Renovation Project

NEWS IN BRIEF

Global partnership to bid for the Magnox RSRL PBO

M+W Group Complete Senior Hargreaves Acquisition

NIA member companies; CH2M HILL, AREVA and Serco have joined forces to form ‘CAS Restoration Partnership’. The consortium has announced its intention to participate in the NDA’s competition for the Parent Body Organisations (PBO) for Magnox Ltd. and Research Sites Restoration Ltd (RSRL).

The successful entrant for the NDA’s new PBO competition will supervise the management of decommissioning activities at twelve UK nuclear sites.

The CAS Restoration Partnership brings together unrivalled expertise in British and global nuclear operations, site management, decommissioning and waste management through three of the world’s leading nuclear institutions.

Lee McIntire, CH2M HILL Chairman and CEO, explained, “This consortium brings an accomplished leadership team and experience in programme management and delivery of some of the UK’s most complex programmes with extensive knowledge of nuclear facility operations and decommissioning.”

Ian Downie, Managing Direct of Serco’s Strategic Partnerships, added, “We are excited by the combined strength that this international team offers. Serco brings a… depth of understanding and proven experience of driving value for money for government authorities and the UK taxpayer.”

A preferred bidder is expected to be announced in 2014.

Global engineering and construction company, M+W Group, have expanded their portfolio with the successful acquisition of Senior Hargreaves.

M+W Group’s UK CEO, Peter Greenhalgh explained that the acquisition of Senior Hargreaves was a logical step in the development of the global engineering, construction and project management company: “The Hargreaves team has a long history and extensive experience in technology based projects which fit well with our strategic plans for sustained growth in our target markets of science and research, technology manufacturing facilities and energy based programmes.”

Founded in 1872, British company, Senior Hargreaves has grown into one of the leading providers of air movement and ventilation ductwork solutions delivering in projects across all sectors including, nuclear industrial, healthcare, retail, commercial and leisure sectors. The CEO of Hargreaves, Tim Hopkinson explained his delight at the sale: “We welcome this news as an extremely positive step forward in the development of the company enabling us to drive overall growth of the company. This move facilitates the ongoing development of our product portfolio and, crucially, investment in the business and the skills of our workforce.”

2012 | WINTER — 13

Another year, another political party conference extravaganza!

Each year party conference season provides 3 weeks of opportunities to engage with parliamentarians, councillors, activists, grassroots party members and government relations experts on the issues of the day.

In 2012 the NIA was once again at the heart of proceeding – we hosted a prime location exhibition stand at the Lib Dem, Labour and Conservative conferences as well as hosting both a fringe meeting and a reception at all three.

Our theme for this year’s conference season, Engine for Growth, proved both topical and timely with fringe events left, right and centre covering issues such as infrastructure, manufacturing and the economy. In fact, the unofficial theme of the conferences was undoubtedly growth.

Our events and exhibition stand attracted a host of influential individuals and interested parties, both out of interest and as speakers, providing an unrivalled opportunity to drive home our key messages and provide information on issues ranging from the benefits of nuclear, to decommissioning, to the Energy Bill.

We were also able to rebut some of the myths and preconceptions that people came to us with.

The NIA’s conference engagement programme is supported by sponsorship from member companies, and we would like to recognise and thank those companies that kindly supported us this year: AREVA, NuGen, Britain’s Energy Coast and Nuclear Management Partnerships.

14 — WINTER | 2012

BY HANNAH GRIMSLEY

WHO MOVED WHERE? In early September, just ahead of Party Conference season, the Prime Minister conducted the first wide-ranging Government reshuffle since the May 2010 election. For the Department of Energy & Climate Change, this meant some major changes.

John Hayes MP was announced as the new Minister of State for Energy, replacing Charles Hendry MP, whilst Baroness Verma became the Parliamentary Under-Secretary of State for Energy & Climate Change, the role previously undertaken by Lord Marland. The relatively new Secretary of State Ed Davey MP and Climate Change Minister Greg Barker remained in position.

Given the current prominence of the nuclear new build programme and the desire for the UK supply chain to benefit as much as possible from the opportunities available, the role of Energy Minister seems something of a natural progression for John Hayes who was previously Minister of State in the Department for Education with particular responsibility for apprenticeships, careers guidance and vocational education. Similarly Baroness Verma has already become immersed in energy issues, visiting Sellafield only two weeks after her appointment.

2012 | WINTER — 15

Lib Dem Images © Manny Begum, Yaadein Photography — yaadein@live.co.uk Conservative Images © David Lake & Ben Page Photography — www.davidlakephotography.com

Party Conference Season

Opportunity Knocks for National Nuclear Laboratory N

uclear research and development has been through a period of decline in the UK over the past 20 years or so. As shown strikingly in figure 1, Government spending on nuclear research has fallen to virtually nothing, and the workforce has declined in proportion. This is not surprising given that Government thinking through this period was to focus on closing down and safely cleaning up the nuclear sector, with no eye to expansion or the need for new technology.

However recently there has been a renewed enthusiasm for lifetime extension, innovation in waste management and clean-up, new build and prospects for a deep repository. With these shifts comes both an increased opportunity for novel technology and a need for a new generation of skilled people.

16 — WINTER | 2012

With that in mind, the House of Lords carried out an influential review of the nuclear R&D sector in 2011, concluding that there was a need for a strategic national programme and a stronger, central role for the UK's National Nuclear Laboratory (NNL). Under the leadership of Chief Scientific Advisor Sir John Beddington, Government are currently finalising their plans to implement the recommendations, which look set to help restore the UK to a more central role on the global nuclear stage.

NNL was created out of the R&D division of BNFL when that company was split up in 2008, with the aim of preserving and developing the UK's vital experience and knowledge across the full nuclear fuel cycle. The company remains in Government ownership, although it is managed on a commercial basis by SBM, a consortium of Serco, Battelle and The University of Manchester. This "GO-CO" model Government owned and contractor operated - is used elsewhere in the UK nuclear sector, and is also the model used for other unique national research assets such as the National Physical Laboratory (NPL).

Unlike other national nuclear laboratories, such as those in the US, NNL receives no direct funding from Government.

Every pound of the company's £80M turnover comes from customers in return for specific packages of work. Yet the company manages to retain a strong profile on the global stage, with record numbers of publications in journals and at conferences, and very active participation in national and international committees and technical fora.

NNL comprises around 800 staff, the majority of whom have science, technology or engineering degrees, and a world-leading suite of facilities. The company operates from 6 locations, with the majority of employees being based in the North West of England –the nuclear industry’s heartland.

500 Figure 1 - UK Public Sector Fission R&D Funding.

450

Funding £M

400 350 300 250 200 150 100 50 0 1970

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Key to NNL's long term future is the full commissioning of the Central Laboratory on the Sellafield site. Phase 1 of the building is already operational, housing inactive laboratories as well as uranium labs and the "PUMA" lab which handles small quantities of plutonium and minor actinides. Work to commission Phase 2 is currently taking place, and these facilities, capable of handing larger quantities of plutonium, will be operational in early 2014, at which point NNL will have the capability to manufacture test rods of MOX fuel for advanced reactors, as well as handling materials such as thorium, which are increasingly being considered for longerterm use in future fuel cycles.

1995

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Phase 3 of the Central Laboratory is a suite of 5 heavilyshielded hot cell locations which are capable of handling the most radioactive specimens in the world, such as highly irradiated fuel samples or high level waste. These cells are designed to be removable so that after each use, the stainless steel cell unit is retracted and sent to a cleaning station, and replaced by a clean unit. With 5 bays and 6 cells, all 5 locations can be used, while a cell is being decontaminated and prepared for its next use.

NNL’s customer base includes most of the big names in the UK nuclear industry, with Sellafield Limited, EDF Energy as the two largest. A key element of the work for EdF Energy is specialist analysis of samples from the operating AGR fleet, including graphite samples taken from AGR cores. The results of these tests are used by EdF Energy to support the safety case for continued operation of those reactors, so NNL is helping to keep the UK’s current fleet running (and the UK’s lights on) as well as developing technology for deployment in future plants.

But there is plenty of work looking at longer-term opportunities too. From RadBall – the innovative passive radiation detector, already trialled at Sellafield to great customer acclaim and now being considered for use in the Fukushima clean-up effort – to a project for the European Space Agency looking at the use of Americium-241 as a material form which to make “space batteries” to generate continuous heat and power for decades in missions heading out to deep space. And plenty of more conventional work in between, much of which helps to safeguard UK specialist nuclear technical skills – a remit given to NNL by DECC, which is ever more important given the aging demographic of the industry’s workforce and the fact that many key “subject matter experts” are approaching retirement.

With a new age of nuclear research soon set to dawn in the UK, supplementing customer work with national strategic programmes, the NNL’s role has never been more important.

ADRIAN BULL National Nuclear Laboratory adrian.j.bull@nnl.co.uk

2012 | WINTER — 17

IN VIEW

£1.1 Sellafield Contract

BN Announced

© Sellafield Limited — www.sellafieldsites.com

Engineering consultancy ARUP and construction firm Morgan Sindall plc have been confirmed as the preferred partners for a £1.1bn contract at the Sellafield nuclear site.

The deal will bring the companies together to develop and improve important infrastructure assets on site, including the maintenance of electricity and steam generation, water supply, bulk chemical storage, compressed air generation, drainage networks, the maintenance of the transport infrastructure and all general building facilities.

18 — WINTER | 2012

“ It’s important that we seize that opportunity to unlock expertise and innovation (to) safely deliver our work programme quicker and more cost effectively.

In Morgan Sindall and Arup, we have found a partner with a proven track record that will help us ensure that our infrastructure assets receive the best possible care.”

George Beveridge Sellafield Limited

2012 | WINTER — 19

The Twittersphere

YouGov Survey Highlights Continued Support for Nuclear Power BY. RUPERT LEWIS

For the nuclear industry, twitter has been a-buzz with news stories over the past few months – although I don’t think we have quite managed to achieve the high status of the trending topic!

The news of Horizon’s sale to Hitachi definitely got people talking, gaining as much prominence on social media as it did in the more traditional press. There were numerous commentators remarking on the implications for the nuclear industry and the energy industry as a whole. And the outlook was positive, with a great deal of recognition for the huge vote of confidence this signalled for the UK nuclear industry.

Taking the temperature of twitter users, it was clear that the main story that resonated with people on this was the job opportunities, particularly in North Wales. @edfenergy and @UKNNL also took advantage of social media to garner interest in opportunities they have available, advertising their information day to search for apprentices at Sizewell B and a 2013 industrial placement scheme respectively.

Finally, political life and social media linked together Who to follow? successfully during the Want information on nuclear Energy & Climate Change and other relevant topics?

Select Committee sessions This issue we recommend you on new nuclear build, with follow: running commentary being provided by a number of sources. If you are keen to @W_Nuclear_News read the key comments from @UKNNL leading industry and @DECCgovuk Government figures, they @AREVAinc are still available on @NIAUK. Twitter Count Followers: 875 Tweets: 561

@NIAUK

Clean energy for 14 million homes over 60 years #nuclear #Horizon #UKenergy http://tinyurl.com/9l88wq5

@BBCr4today – Energy Sec Ed Davey: Hitachi’s #nuclear investment programme is a “huge vote of confidence” in the government’s energy policy

20 — WINTER | 2012

The validity of opinion polls is often called into question and this distrust was recently vindicated after hundreds of polls predicted a Presidential race which was a statistical ‘dead heat’ - but was won fairly conclusively by Obama.

Although political analyst Nate Silver - who predicted the outcome of 49 of the 50 US states using the same polls might tell us otherwise.

So what do the results of a recent YouGov poll tell us about the public’s attitude towards nuclear power? The findings are encouraging and clearly illustrate an increase in favourability amongst the British public towards nuclear power.

The survey found that 40% of those questioned felt that the Government should increase the number of nuclear power stations, up from 35% in November 2011. On the flip-side, only 20% believed that there should be fewer plants than at present, down from 27% in 2011.

Meanwhile, carbon-emitting power stations remain universally unpopular with the majority stating that the Government should be looking to use less oil, coal and gas powered stations.

In accordance with a number of polls conducted since Fukushima, favourability towards nuclear is returning and even surpassing the levels of support experienced before the Tsunami. These results are extremely positive and it is apparent that stories surrounding waste-management, jobs and economic growth are clearly resonating with the public.

However, other aspects of the survey highlight embedded issues amongst society regarding nuclear and the wider energy industry.

There is concern about the rising cost of energy bills - 58% said they believed the main reason for the increase was energy companies taking bigger profits. 17% blamed rising oil and gas prices while 11% thought the cost of meeting government carbon reduction targets was the deciding factor. Notably, 70% of those questioned believed it was unfair for energy companies to pass on the cost of meeting those targets to consumers.

Public attitudes towards nuclear are undoubtedly improving although it is also clear that some issues still need to be addressed for this positive trend to continue. This is not an impossible task and with cross party support and the need for Government to meet its carbon emission targets, it is imperative that nuclear power plays a prominent role in the UK’s future energy mix.

The YouGov/Sunday Times poll was carried out from 22nd – 23rd November 2012 using a sample of 1,812 British adults.

SNAPSHOT

British Universities to Lead Consortium on Nuclear Accident Assessment A collaborative research project has been set up after an EPSRC (Engineering and Physical Sciences Research Council) award to examine the measures put in place to protect nuclear power plant workers and the public. Using data from the Chernobyl and Fukushima accidents they will consider the most effective countermeasures to apply after a nuclear accident.

The UK consortium will lead the NREFS project which consists of four academic partners, including City University London, Cambridge, Manchester and Warwick, who will all work closely with the Atomic Energy Commission of India headed by Dr Shrikumar Banerjee.

A number of new techniques will be utilised such as the Judgement or J-value framework; a set of objective techniques developed at City University London to ascertain the optimal rational expenditure to protect the environment and human life. Financial techniques including Real

Options and Portfolio Theory will also be used in assessing the radius for an exclusion zone.

Professor Philip Thomas from City University London, who will be leading the project explained, “We have seen an enormous growth in objective decisionmaking tools since Chernobyl. Financial mathematics provides one rich seam while another is the Life Quality Index we use in the J-value. With the J-value, we can state objectively, for the first time, how much ought to be spent to protect people from harm, using actuarial and economic data gathered from the whole population."

Commenting on the merits of nuclear power and India’s vital input into the research project, Professor Thomas continued, “Few followed Germany in its decision to phase out nuclear power, but all increased the priority they gave to managing nuclear risk. This is obviously very important for retaining nuclear as a carbon-free energy option in the face

of dwindling world energy supplies and global climate change.

“Dr Shrikumar Banerjee, Secretary of India's Department of Atomic Energy and Chairman of the Indian Atomic Energy Commission, has agreed to be a member of the UK-India project team for NREFS. He will be providing feedback on the research results as they arise (and) his presence on the team should ensure rapid implementation in the Indian nuclear industry of the useful new research ideas we hope to generate."

The findings of the project will be released and any recommendations will be outlined in the autumn of 2014 to the British and Indian governments. Both of whom intend to greatly increase their nuclear capacity in the next decade.

You can learn more about J-value You can learn more about thethe J-value framework www.jvalue.co.uk framework at at www.jvalue.co.uk

2012 | WINTER — 21

SMR Image © 2011 Babcock & Wilcox Nuclear Energy, Inc. All rights reserved — www.babcock.com

SMR EVENT

ON 30.01.13 NIA WILL BE HOLDING AN EVENT TO EXPLORE OPPORTUNITIES THAT SMALL MODULAR REACTORS COULD OFFER TO THE UK SUPPLY CHAIN. FOR MORE INFO CONTACT STEPHANIE.MCKENNA@ NIAUK.ORG

SMALL MODULAR REACTORS BY. ANDREW RENTON ⁄ BIRD & BIRD

W

hilst the USA was gripped by election fever and the resurgence of its oil and gas sector as a potential net exporter, a relatively unnoticed announcement was made by the American Security Project (a non-profit, nonpartisan public policy and research organisation).

The announcement, on 16 October 2012, recognised the difficulties facing development and construction of new large nuclear reactors – a common theme around the world – and asserted that a multi-dimensional power industry is needed to address the national security issue of selfsufficiency in energy. Small modular reactors (SMRs) were described as offering unique benefits over large reactors in terms of cost, safety, flexibility and speed of delivery. However, whilst commentators agree that there are benefits, they have pointed out that with the low costs of US gas and the absence of carbon taxes; the US market is likely to be slow for SMRs. Fortunately, the US Administration has expressed confidence in SMRs and announced a $452 million matched funding programme to get two SMR designs cleared through the regulatory process by 2022.

SMRs have a lot to offer the industry. The main attractions from an industry point of view are: →→ power construction engineering process; →→ factory quality assurance standards; →→ much reduced costs; →→ faster GDA and licensing after first approvals; →→ flexibility in re-fuelling options; →→ smaller footprint and adjacent facilities; →→ enhanced safety criteria.

There are a large number of SMRs (25MWe+) in the later stages of development (17 by my count), using different technologies.

SMRs offer a solution from a regulatory point of view by reducing the assessment and approval process because many are based on the large reactor designs where approval requirements are known. The ability to apply quality assurance and factory manufacturing standard-isation should give confidence.

From a construction engineering point of view, the ability to progress with nuclear and non-nuclear construction in parallel means greater efficiency and less complexity in contract structures for delivery.

With potential for location within or adjacent to existing license sites, the opportunity to utilise SMRs in countries with existing nuclear sites would appear attractive.

With many countries struggling to meet the growing concerns over energy gaps, it is likely that there will be an increased interest and demand for SMRs as a solution. The IAEA has predicted between 43 and 96 SMRs to be built and in operation around the world by 2030. Let’s hope some of them are in the UK! If SMRs are to be built in the UK then there may be a case for standardisation across all aspects of manufacture - instead of having individual Country

by Country design assessment and regulatory approvals - a combined international approach through the IAEA might be preferable to get nuclear generation moving forward at a pace. This would not be easy but it would at least be a common approach and through collaboration we could see development happen at a reasonable pace. Adopting a leading position on this would diversify the UK Government’s approach to NNB and would hopefully invigorate the investment required to achieve the NNB programme.

Some aspiring developers may already be eyeing SMR opportunities with their consortium partners but unfortunately the UK has a reputation of raising a new hurdle just as the old one is knocked down. If there is a move to make SMRs the future of nuclear generation, affordability and the regulatory and legislative processes which make other jurisdictions much easier to develop in, may force a withdrawal of interest in the UK. As someone who was born the month Calder Hall was commissioned, after a four year design and construction, I find it hard to believe we can’t facilitate the opportunity to generate electricity from such low carbon low risk technology within less than a decade. Oh and by the way if you missed the underwhelming press coverage of the “stress test” report on European reactors - they all passed!!

THE NEXT BIG THING 22 — WINTER | 2012

Constructing excellence in the nuclear sector In the first in a series of construction focused articles, Don Ward, Chief Executive of Constructing Excellence discusses collaborative working.

The nuclear new build, operational and decommissioning programmes in the UK offer massive opportunities for a worldclass UK construction industry. For construction it is the latest in a series of ever-more successful programmes which started with Heathrow Terminal 5, and the latest of which was the widely-hailed Olympic Park in East London.

Why collaborative working?

Constructing Excellence has an impressive evidence base of the benefits of collaborative working on major infrastructure projects: →→ Deliver reliability and predictably on budget on time →→ Deliver a safe project efficiently →→ Reduce waste in all its forms →→ Improve site productivity →→ Maximise supply chain stability →→ Deliver on budget through supply chain efficiency instead of

attacking profit margins

→→ Shared risk/shared profit philosophy →→ Fit for purpose build →→ Lifetime costing approach

Constructing Excellence define collaborative working as “working together in a seamless team to common objectives that deliver benefit for all”. In the current era, this might be summarised as “mutually-beneficial commercial alignment”.

They have identified three over-riding principles. Without these, there may be good project management practices but it is not full collaborative working. These are: Common vision and leadership. Collaborative teams share a vision of what represents value for the project team, as well as the client and end users. This will likely be defined as some combination of operational performance, predictability of delivery on cost and time, no surprises, and absolute cost and/or time reduction.

Collaborative culture and behaviours. Collaborative behaviours include teamwork and joint problem solving, and participants live values such as trust, fairness, openness, no-blame, honesty and transparency.

Collaborative processes and tools. Critical factors for success are early involvement, selection by value, common processes and tools, measurement of performance, long-term supply chain relationships, and modern commercial arrangements.

Energy Bill announcement The Secretary of State for Energy & Climate Change Ed Davey has now announced a package of decisions around the Energy Bill. These include: →→ The creation of a Government-owned company

to act as a single counterparty to give investors confidence to enter into new long term Contracts for Difference for low carbon electricity projects. →→ Powers to introduce a capacity market, allowing

→→ A Gas Generation Strategy will be published

alongside the Chancellor's Autumn Statement. →→ An amendment during passage of the Bill to take

powers to set a decarbonisation target range for 2030 in secondary legislation. A decision to exercise this power will be taken once the Climate Change Committee has provided advice in 2016 on the 5th Carbon Budget which covers the corresponding period.

→→ The amount of market support to be available

for low carbon electricity investment (under the Levy Control Framework) up to 2020 has also been agreed. This will be set at £7.6 billion (real 2012 prices) in 2020, which corresponds to around or £9.8 billion (nominal 2020 prices).

It is broadly consistent with the Committee on Climate Change's recommendation. It will provide certainty to investors in all generation technologies and provide protection to consumers.

© DAVID ILIFF — License: CC-BY-SA 3.0

for capacity auctions from 2014 for delivery of capacity in the winter of 2018/19, if needed, to help ensure the lights stay on even at times of peak demand.

At the time of going to print we were still awaiting publication of the Energy Bill, which is expected in the week beginning November 26th.

2012 | WINTER — 23

The Smallpeice Trust encouraging young people to consider nuclear engineering as a career!

T

he nuclear technology sector is undergoing a number of changes in readiness for nuclear new build to play an increasingly important role in the future of the nation’s energy supply. However, with many current nuclear engineers now heading towards their retirement age it is essential to train and encourage more young people to embark on a career in nuclear engineering to secure the future of the industry.

Independent educational charity The Smallpeice Trust has teamed up with energy companies to help tackle the skills shortage in engineering. Established in 1966, The Trust inspires more young people year-on-year to consider a worthwhile career in engineering. Last year they reached out to 20,353 students across the UK through Science, Technology, Engineering and Maths (STEM) Days and Residential courses.

Thirty-three courses were run in various strands of engineering; six concentrating on the nuclear energy and Low carbon sectors.

So how did it all begin? In 2005, representatives from the National Nuclear Laboratory, The Royal Navy and The Smallpeice Trust met to review a residential course they had attended. The conversation quickly digressed to nuclear

24 — WINTER | 2012

engineering and the gap in the market for nuclear courses aimed at inspiring young people. It was there that a plan was put into action to develop a course in nuclear engineering to commence in the summer of 2006.

Since 2006, The Smallpeice Trust has run annual nuclear engineering courses. The courses started quite tentatively as the level of interest from teenagers was unknown, however just a few years on and these courses see the greatest level of demand with The Trust.

The Smallpeice Trust works to encourage students to consider all forms of low carbon energy, from wind and wave to nuclear and even nuclear marine engineering. This gives students an insight into the importance of renewable energy and how it can be harnessed more effectively than fossil fuels to power everything from our homes to the propulsion of submarines.

This year, The Smallpeice Trust held nuclear based courses in Bangor, Lancaster, Manchester and Portsmouth with support from organisations such as Babcock, EDF Energy, the Engineering Construction Industry Training Board (ECITB), National Nuclear Laboratory (NNL), The Royal Navy, URENCO and the University of Wales.

“…STUDENTS DEMONSTRATED A REMARKABLE ENTHUSIASM FOR THE SUBJECT...SO MUCH SO THAT SOME OF THEM EVEN MISSED THEIR BREAK TIMES.” These courses enabled around 200 thirteen to fifteen year old students across the country to gain a real insight into the exciting developments taking place in the nuclear industry. This was timed to ensure the attention of students was captured just before they went on to choose their GCSE or A-level subjects.

These four-day residential courses saw students working with engineering professionals to gain an insight into life as a nuclear engineer. Over the four days, the students took part in a combination of presentations, workshops and practical ‘design and make’ projects. A variety of subjects were tackled including radiation, the environment, health and safety and decommissioning. Students particularly enjoyed wearing full protective clothing as they were tasked with removing ‘sludge’ from a nuclear container.

Throughout these courses, the students demonstrated a remarkable enthusiasm for the subject and were keen to get to work on their projects: so much so that some students even missed their break times. Reassuringly 99 of the 134 students who completed their feedback forms stated that the course they attended had encouraged them to pursue a career in engineering.

With many key players in the nuclear sector becoming involved with Smallpeice Trust courses, we are now able to

offer students a ‘real life’ experience as a young engineer.

Companies such as the National Nuclear Laboratory and the Engineering Construction Industry Training Board have all played a big part in helping to bring the subject to life.

Dominic Rhodes, Senior Fellow from NNL and course facilitator for the Nuclear Engineering course at Lancaster commented, “Without courses like these there will be no future engineers, that is why it is important to inspire and enthuse students towards considering a career in nuclear engineering.” Next year, The Smallpeice Trust plan to run another three courses in Nuclear Engineering with confidence that the course will be as popular as ever, ref lecting a very bright outlook for the future of the nuclear industry.

HAYLEY CHARLESWORTH The Smallpiece Trust

2012 | WINTER — 25

NIA Decommissioning Group meeting in Anglesey At the beginning of September, the Decommissioning and Radwaste Group (DG) held its landmark 50th meeting at Coleg Menai in Anglesey. The overarching theme for the meeting was the supply chain and commercial opportunities, with an emphasis on SME engagement.

It was the first time the DG had been hosted in North Wales, and that location helped shape the agenda for the day. The area possesses a long history of safe nuclear power generation, and has a sophisticated, specialist supply chain servicing the wide ranging needs of the plants at Wylfa (operational) and Trawsfynydd (accelerated decommissioning). In addition, with Wylfa identified by Horizon Nuclear Power as a potential UK new build location, it seemed opportune to focus the meeting on opportunities for the nuclear supply chain, without distinguishing the decommissioning and new build sectors.

The morning sessions focussed on a strategic overview, with presentations from Peter Walkden of Magnox, John Idris Jones representing the Anglesey Energy Island programme, Gwenllian Roberts from the Welsh Government and the Nuclear Decommissioning Authority’s (NDA) Head of Supply Chain Optimisation Ron Gorham. During his presentation, Ron announced the setting up of a new NDA-backed initiative – a National SME Steering Group to support supply chain improvement and SME access across the NDA Estate.

The National Steering Group will be supported by five Regional SME Steering Groups – the first of these Groups will be in Wales, and comprise senior Site Licence Companies, NDA and Tier 2 representatives along with SME representatives.

We heard presentations from Sellafield’s Head of Supply Chain, John Sidney, Colin Jones from RSRL and NIA Chief Executive Keith Parker, who looked specifically at opportunities for the supply chain. The first afternoon sessions had a new build focus with Alan Smith speaking from Horizon and EDF Energy's Chris Squires, who is keen

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to engage the Welsh supply chain for opportunities at Hinkley. The DG concluded with Neil Foreman looking at nuclear opportunities from an SME perspective, with Magnox setting out in the final session the upcoming commercial opportunities at Wylfa and Trawsfynydd.

The event was opened up to 30 local supply chain companies who were nominated by the Welsh Government and Constructing Excellence Wales and we had a total of 145 attend in total. Bringing all key stakeholders together to plan and share events is a model we would like to use in future. There was an excellent line-up of speakers, clear information on commercial opportunities and the chance to network with some of the key organisations and individuals in both the nuclear sector and that region. The event was kindly sponsored by the Welsh Government, and NDA. Our thanks go to; Hydrock and KDC who sponsored the Ice Breaker and Speakers’ Dinner respectively the night before; and Sweett (UK) and HR Wallingford who sponsored refreshments and lunch respectively during the day.

The Decommissioning Group is open to all NIA members and meets three times a year at locations across the UK. If you would like to discuss opportunities for your company to sponsor, host or participate in future DG meetings please do not hesitate to contact me, Stephanie McKenna or Andy Munro.

GARETH DAVIES Burges Salmon gareth.davies@burges-salmon.com 0117 307 6920

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NEW NIA MEMBERS

FIND OUT MORE ABOUT BENEFITS OF NIA MEMBERSHIP AT NIAUK.ORG/ MEMBERSHIPINFORMATION

Ansaldo Nucleare SpA Ansaldo Nucleare is a company fully owned by Ansaldo Energia and is part of the Finmeccanica Group. The Company has complete responsibility for the nuclear business and has a sound presence in new international markets. In Italy, Ansaldo Nucleare is recognised as the main industrial company in the nuclear sector. Product lines include engineering & construction of nuclear power plants, service to nuclear power plants and facilities in operation, decommissioning and radioactive waste management.

WELCOME

Gary Gabriel Associates Gary Gabriel Associates are Structural and Civil Engineering Design Consultants based in Taunton and Sevenoaks, with close ties to Fairhurst. They have recently been assisting a major consultant by carrying out several Statutory and Licence Condition inspections at Hinkley Point A decommissioning site. These have included those for the Turbine Hall and the R2 Reactor Building.

Canaway Fleming Architects Ltd Canaway Fleming Architects Ltd. has been involved with the UK Nuclear New Build Programme for the past 3 years with EDF Energy at Hinkley Point C, Somerset and Sizewell C, Suffolk providing architectural and strategic master planning advice and services. Their role is lead consultant co-ordinating the consultant team for the associated development on both projects from stage one public consultation through to detail design, tender and construction monitoring.

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Arvia Technology Ltd Arvia’s unique technology destroys toxic and non-biodegradable organic contaminants from a wide range of aqueous effluents using adsorption coupled with electrochemical regeneration. Arvia’s technology has been developed for the destruction of low-level waste (LLW) and intermediate-level waste (ILW) oils in the nuclear industry, the technology however can also be applied to a number of other organic radioactive waste streams found at nuclear sites.

OPINION

PowerPolitics “…IF WE ARE SERIOUS ABOUT DECARBONISATION IT MAKES MUCH MORE SENSE TO REPLACE OUR DIRTIER GENERATING PLANT.” Since my last column the major political parties have held their annual conferences and the NIA, as always politically impartial, had a presence at all three.

Plebgate and Boris mania apart the highlight was probably the respective leader speeches. Media comment on these has been split: they were either hugely successful or a gigantic failure depending on the editorial line. Given our impartiality - and the fact nuclear did not really feature - I would hesitate to wade in. All I would say is that in my view each leader did more than enough to impress his own party members, and therefore to shore up his position, and that this was undoubtedly the key objective.

Of course broader energy policy was very much a feature at all three conferences, starting with the Lib Dems call for a clause in the forthcoming Energy Bill setting a legally binding target for the decarbonisation of the electricity sector by 2030. This initiative followed rumours that parts of Government, who allegedly see climate change campaigners as the ‘environmental Taliban’, are looking to scale back the UK’s renewable commitments.

The Lib Dem call focuses on the conclusion of the (independent) Committee on Climate Change that the UK’s climate change targets can only be met if the electricity sector is largely cleaned up. Given that around 40% of our current carbon emissions come from the electricity system - and there are real practical difficulties in achieving significant carbon savings in other sectors such as transport - this must surely be right. Quite simply if we are serious about decarbonisation it makes much more sense to replace our dirtier generating plant, which is coming to the end of its life anyway, before we attempt to electrify all our cars.

It was for this reason that a powerful alliance of the UK’s largest businesses and industry bodies – ranging from Asda and Pepsico to Sky – recently wrote in support of the Committee’s conclusion,

pointing out that failure to act at a sufficient scale and pace will undermine our prosperity. Closer to home, the NIA has itself submitted to Government a joint letter with the Carbon Capture and Storage Association and Renewables UK on this issue.

Of course the Green NGOs are also supporting the Committee’s decarbonisation conclusion; although disappointingly in this case they are arguing it can be achieved through ‘renewable technologies, large scale energy efficiency measures, interconnection with Europe and smart technologies’ alone, and with no new nuclear.

The latter is surprising given that the Climate Change Committee itself saw a significant role for nuclear, with the Chief Executive David Kennedy telling a National Grid Future Energy Scenarios 2012 conference just this month that his plan ‘A’ would require ‘an aggressive nuclear programme’, with around 20 GW of new capacity. Even his plan ‘B’ would see 10GW of nuclear added to the system!

Unsurprisingly our views are closer to Mr Kennedy’s than the NGOs. Like the CBI we believe that all the evidence points towards a balanced and diverse energy mix as the most cost-effective pathway to decarbonisation. This means, assuming the economics are right, a mix of new nuclear, new renewables, new carbon capture and storage, and yes, if necessary, some new gas. We are pragmatists not idealists, and have no wish to see the lights go out.

Although carbon targets have caused a stir, a far bigger political hot potato has been the issue of domestic energy prices. As I can personally testify, gas and electricity bills have become a far larger element in household budgets than ever before, and given the effects of the recession, a major problem for many people. A feeling that tariffs are largely unintelligible has simply compounded the issue which has now been brewing for many months.

Against this backdrop, political attacks

on the ‘big six energy giants’ has touched a raw nerve, garnering acres of news print and provoking frantic activity in Government including the personal involvement of the Prime Minister. The result has been a series of announcements, including at the time of writing a proposal by Ofgem that energy suppliers should be obliged to offer customers their best tariff, and a Government commitment to include something on the issue in the forthcoming Energy Bill.

Whilst a witch-hunt against the energy companies is probably inevitable given the public concern, the reality is that they are not profiteering at the expense of the consumer. Whilst their invoicing could potentially benefit from simplification, the fact of the matter is that a detailed investigation by Ofgem earlier this year found that the average profit margins for supplying energy in the UK were just 4% before tax. This is hardly excessive and well below for example the telecommunications industry (around 10%).

The risk of course is that the current debate about energy prices will colour wider political thinking, and in particular attitudes to Electricity Market Reform, as the Energy Bill hits Parliament. Given that the UK urgently needs to invest in new generation capacity – Ofgem’s recent report showed that the electricity margin (the spare capacity in the system) will fall from the current 14% to just 4% in 2015/16 – we need to take decisions quickly. It is important in doing this that politicians give as much regard to the long term interests of the country as to short term political expediency.

PETER HASLAM Public Policy Adviser NIA peter.haslam@niauk.org

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