Industry Link - March 2013

Government Special: focusing on the Energy Bill and its innovative way of ensuring Britain attracts investors in low carbon energy sources. We also focus on the Supply Chain Action Plan, which seeks to ensure UK companies are prepared for the influx of significant contracts for business

Magazine of the UK nuclear industry association spring / 2013

NIA.ORG

A New Dawn for Nuclear uk companies leading the world in decommissioning Supply Chain Action Plan 2

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positively promoting 14 nuclear power

Welcome to IndustryLink

british smes present expertise to china SNAPSHOT

Alastair Evans Alastair.Evans@niauk.org

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

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VISIT NIAUK.ORG

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IN VIEW

changing the nuclear waste management game FEATURE

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

Nuclear Industry Association is a company limited by guarantee registered in England No. 2804518 Registered Office Carlton House 22A St James’s Square London SW1Y 4JH TEL +44(0)20 7766 6640 FAX +44(0)20 7839 1523 EMAIL info@niauk.org Contributors Alastair Evans, Peter Haslam, Keith Parker, Rupert Lewis, Dan Powney, Stephanie McKenna, Hannah Grimsley, Kirsty Alexander, John Hayes MP, Chris Pincher MP, Michael ContiRamsden – Arvia Technology, Vincent de Rivaz – EDF Energy, Kris Bradshaw – Nuclear AMRC, Steve Wood – REACT Engineering, Lizzie Murray – Nuclear FiRST, Harriet Smith – UK Trade & Investment

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

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Hannah.Grimsley@niauk.org 07894 595 717

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Follow us: @NIAUK

MAIN FEATURE

“ Government is committed to creating the right conditions to make the dream of a new generation of nuclear power come true”

PAGE 2 Design and Creative Direction thomasmatthews.com

Cover image: House of Commons Chamber © UK Parliament. Reproduced with kind permission of Parliament — www.parliament.uk

Welcome to the first IndustryLink of 2013.

In this issue the Energy Minister John Hayes MP urges small companies to grasp the opportunities presented by the nuclear programme. Continuing the theme, Energy and Climate Change Select Committee Member, Christopher Pincher MP, insists that we have an industry to be proud of, arguing we should not ‘hide our light under a bushel’. We at the NIA wholeheartedly agree with both sentiments and this quarter’s magazine includes some fantastic examples of companies doing just that, as well as highlighting the potential impact of the Government Supply Chain Action Plan.

Nuclear has not been far from the headlines this year, which is not surprising given the forthcoming electricity supply crises. This was spelled out by the Ofgem Chief Executive, Alistair Buchanan, who stated, “If you can imagine a ride on a rollercoaster at a fairground, then this winter we are at the top of the circuit and we head downhill – fast. Within three years we will see reserve margin of generation fall from below 14% to below 5%. That is uncomfortably tight.”

Many of you will be reading this quarter’s edition at the Nuclear New Build Conference, which is a great opportunity to discuss a host of new and exciting developments, not least significant progress on Hinkley Point C. If 2012 was the year of promise, 2013 must be the year of delivery.

Why New Nuclear Must Power Ahead

House of Commons Chamber © UK Parliament. Reproduced with kind permission of Parliament — www.parliament.uk

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he history of Britain’s relationship with nuclear energy is characterised best by the words of Jerome Kern’s classic song, “She didn’t say yes, she didn’t say no; she didn’t say stay, she didn’t say go”.

Previous Governments have been guilty of disjointed policy making, vacillation and procrastination. For more than a decade investment into our energy infrastructure has been seriously lacking, most blatantly by the last Government’s refusal to back any nuclear programme.

As a consequence, Ofgem’s Chief Executive was obliged to warn last month that “keeping Britain’s lights on will come at a price” with a combination of UK power plants closing, foreign gas supplies shrinking, and energy demand rising, our energy reserves are “uncomfortably tight.”

Nuclear, a crucial component in tackling the energy trilemma of cheap, clean and secure supply, again finds itself at a critical crossroad between government decision making and investor confidence. It is important that this Government sends the investor community the clearest signal that it will grow the sector as a component of our energy mix. Given the recent news that Centrica will not participate in the new build programme, maintaining the momentum behind Hinkley C and Sizewell is even more essential.

For its part, the nuclear industry must not hide its light under a bushel.

It must reach out to popular opinion to kill off any lingering myth that nuclear is expensive compared to other sources and poses health and safety risks. The fact that nuclear is both clean and consistent, is the second cheapest electricity generator after hydro power, and that nuclear power stations are safer to visitors than coal mines must be printed on the public mind.

In terms of security, we source our uranium from the world’s most benign powers (contrast that with the instability of the biggest oil producing regions) whilst we store tonnes of plutonium worth billions at Sellafield. From a security angle, nuclear is a no brainer and investors, in their dealings with any government, should not be shy about saying so.

Looking more widely at the UK energy mix, diversity is absolutely vital to delivering secure, affordable and low carbon energy, ultimately reducing our exposure to international hydrocarbon prices. The reforms introduced in the Energy Bill seek to encourage competition, instil greater confidence and balance our energy mix.

Of course renewables are essential to meeting our carbon obligations and they present an opportunity for us to become a technology world leader. The problem is that on-shore wind specifically does not deliver either of these. Given the intermittency of wind the supply must be backed up by conventional gas fired stations when the air is still, and the

technology itself is foreign owned.

That duplicates supply and generates more CO2, especially as gas stations are at their most inefficient when being dialled up or down in response to the vagaries of the elements.

And then there is shale gas. With trillions of cubic feet of the stuff beneath our feet, we might have enough to provide 10% of the UK’s gas needs for the next 100 years.

At Westminster it is important that industry voices speak loudly and clearly to all political parties that no one should be afraid of nuclear. Every MP should be invited to visit a nuclear facility, talk to the staff and meet with local communities. Nuclear power and nuclear weapons which those opposed to nuclear energy have cleverly though wrongly tangled together should be clearly separated. The UK should be pro nuclear. It should be proud of nuclear, and it should develop the most attractive regulatory and financial regime to attract nuclear skills and nuclear investment to our shores.

The Energy Bill Explained Carbon Floor Price →→ Comes into effect April 2013 →→ Steadily increasing cost for emitting carbon

Contracts for Difference →→ Will replace Renewables Obligation →→ Price support for all low carbon generation

Capacity Payments →→ Incentives for reliable capacity, helping security of supply →→ Financial reward for back-up plant

Emissions Performance Standard →→ Sets annual limit of 450g CO2 per kWh for new stations →→ Prevents new unabated coal generation

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Christopher Pincher Member of Parliament for Tamworth christopher.pincher.mp @parliament.uk

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here have been a few false dawns to the nuclear renaissance in the UK but I firmly believe the first rays of real promise are now there to be seen.

Along the way both triumph and setback may be predicted by some. Of course the work to achieve a nuclear renaissance is challenging as the withdrawal of Centrica from the new build programme and the decision by Cumbria County Council not to participate in the GDF process recently illustrated. Such challenges are to be expected in any project of such scale and long timeframe and those that claim the end is nigh for new nuclear are often those who did not want it to begin with. The doubters said much the same when RWE and E.ON withdrew from the Horizon project. But this was neither the case then, nor now.

In fact, the building blocks of a nuclear renaissance are being laid. In the last quarter of 2012 alone we welcomed a new entrant to the UK new nuclear market in the form of Hitachi; the first nuclear site license in twenty five years was granted at Hinkley Point C in Somerset; the first application for a new nuclear power station in a generation was submitted to the Secretary of State; final design assessment was granted to the UK EPR reactor design; NuGen started site

assessment work at Moorside; and NNB GenCo launched their first consultation for Sizewell C in Suffolk. That’s quite a list of achievements!

It is clear that we have much to look forward to in 2013. Attention will focus on NNB GenCo as they await the outcome of the planning decision by the Secretary of State and prepare to make their Final Investment Decision. Meanwhile Hitachi and Horizon will begin preparatory work with the Office for Nuclear Regulation and the Environment Agency on the assessment of the ABWR. The new Nuclear Industry Council, co-chaired by DECC, BIS and the NIA, met for the first time on 27 February. There is the Nuclear Supply Chain Action Plan to implement and an Industrial Vision statement due later in the spring.

At the NIA Energy Choices Conference in December I declared that as the most pro-nuclear Energy Minister this nation has seen for a generation I know that nuclear power has a central place in the Government’s plans to keep the lights on, reduce the cost to consumers and lower our carbon emissions. As I steer the Energy Bill, on its passage through the House, confident that it includes fundamental measures to ensure a market-led approach that delivers

certainty for investors and fairness for consumers, I do so confident that, at last, Government is plotting a sustainable energy future for Britain.

So as you prepare for what is likely to be an eventful year I would urge you to grasp the opportunities offered by the UK nuclear sector, certain in the knowledge that Government is committed to creating the right conditions to make the dream of a new generation of nuclear power come true, by working with the industry to drive down costs to ensure we maximise UK economic benefit. As Philip Larkin wrote in his Aubade, we awake at dawn certain in the knowledge that ‘work has to be done’; Government is getting on with that work.

I am confident that 2013 will be a successful year for new nuclear, built on the successes achieved in 2012.

John Hayes Minister of State for Energy Member of Parliament for South Holland and the Deepings hayesj@parliament.uk

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© Jessie Eastland, 2012 (CC BY-SA 3.0) — http://creativecommons.org/licenses/by-sa/3.0/deed.en

A New Dawn for Nuclear

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

The Nuclear Industry Council and Programme Management Board By. Keith Parker

Lord Hutton wrote a piece in the Sunday Telegraph on the need to grasp the nettle on GDF. In his article ‘Time to solve this toughest nuclear problem’, John argues that we have reached a critical stage in the process and it is essential that “Anyone concerned about the geology in Cumbria, should surely see the benefit of establishing the facts and support further work.”

Follwoing Cumbria's GDF decision, Lord Hutton was interviewed on Channel 4 news. He explained, “Today’s decision doesn’t somehow mean the waste has gone away. It still needs to find a long term repository and the Government has got to take that forward fairly quickly.”

Environmental campaigner and author, Mark Lynas was interviewed by Stephen Sackur on BBC News’s HARDtalk to discuss his u-turns on nuclear power and GM crops. He explained that nuclear should be at the forefront of the energy mix to combat climate change and described nuclear as the “safest option on the table”, whilst also noting that “all sources of energy have disbenefits.”

Secretary of State, Edward Davey was recently interviewed

by Andrew Neil on the BBC’s Sunday Politics. During the programme he was asked whether or not the new nuclear programme was in real trouble?

He responded that there is strong interest from around the world in the UK’s new nuclear programme, as endorsed by the price paid for Horizon, and stated that he was confident the programme will be taken forward.

The focus for the industry is now firmly on implementation and delivery across the range of nuclear projects and programmes, and the NIA is at the heart of important initiatives to improve the prospects of success.

On 27 February the newly established Nuclear Industry Council met for the first time under the joint chairmanship of Edward Davey MP, the Secretary of State for Energy and Climate Change (DECC), Michael Fallon, Minister of State at the Department of Business, Innovation and Skills (BIS), and Lord Hutton, the Chairman of NIA. The Secretary of State for BIS, Vince Cable and John Hayes, the Energy Minister in DECC also attended. The Nuclear Industry Council (NIC) membership comprises representatives from industry, government, the research community, the regulators and the trades unions in an industry/Government partnership to take a long-term, strategic approach to the challenges and opportunities that lie ahead for all parts of the nuclear industry.

The issues, considered at this first meeting included implementation of the Government’s Supply Chain Action Plan, a draft Nuclear Industrial Strategy, skills and a cost reduction programme for nuclear. These items prompted a stimulating discussion, and widespread agreement that the Council must be a catalyst for action, focussing on implementation and delivery to ensure that the opportunities for the UK nuclear industry in both the short and long term are exploited and the challenges overcome.

He insisted that in the past nuclear has been too expensive and made it clear that it needed to be “value for money; for the taxpayer, for the consumer, for the economy.”

The full interview is available at www.bbc.co.uk/news/ukpolitics-19863895 Kirsty Alexander was interviewed by Holyrood magazine about the future for nuclear in Scotland. Kirsty highlighted the socio-economic contribution of nuclear in terms of jobs, skills and investment in the local economy. She also stressed the risk that without nuclear it will be extremely challenging to meet climate and energy security goals.

According to a public opinion survey by YouGov (10th Feb. 2013), nuclear is the most popular choice to provide Britain’s future energy needs.

When asked which of the avaliable sources of energy do you support the most, 26% of the public backed nuclear, while 18% supported wind power, a further 18% supported wave/ tidal power, and 16% solar. Only 5% supported gas to provide for Britains energy future, and 2% favoured coal.

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Lord Hutton , Co-Chair of NIC and Chair of PMB

The next meeting of the Council to be chaired by Lord Hutton will focus on industry issues and take place in July.

While the remit of the Nuclear Industry Council covers the whole of the civil nuclear sector, and looks towards the long term future for nuclear energy in the UK, the foundation for that future rests in many ways on the successful delivery of the more immediate nuclear new build programme. A year ago NIA established a Programme Management Board (PMB), also chaired by Lord Hutton to identify potential obstacles to successful delivery of the new build programme, and initiate activities to overcome those obstacles. The PMB is made up of senior representatives of the new build developers, the reactor vendors, the NDA, ONR, NSAN and NESA, the ICE, trade unions and Government officials from DECC and BIS. It has set in train four strands of work related to skills, supply chain quality, readiness, and construction best practice, which are all designed to enhance the ability of the industry collectively to deliver a programme of new build to time and within budget. These work streams involve a range of NIA member companies

in the contracting community working together to address common challenges. The NIA and PMB were closely involved in the development of the government’s Supply Chain Action Plan, and will oversee and monitor the implementation of those actions that relate specifically to new build.

There is clearly synergy between the work of the PMB with its focus on the new build programme, and the Nuclear Industry Council. Both bodies involve a partnership between the industry and government, and are evidence of the strong commitment of both parties to delivering a sustainable and successful long term future for the UK nuclear industry.

For more information about the Nuclear Industry Council please visit www.gov.uk/government/organisations

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WORLD NEWS

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Nuclear – Europe’s Best Option

Westinghouse final prep for 2014 generation

A report by consultants Frost & Sullivan concludes that nuclear energy is the EU’s answer to reducing dependency on fossil fuels, whilst meeting ambitious carbon emission reduction targets.

In the report, entitled ‘European Nuclear Power Sector: Trends and Opportunities’, it is explained that “…nuclear energy shows potential to reduce emissions and dependence on fossil fuels, and therefore, will be a major contributor to the European energy mix in 2020.”

It also notes that the number of reactors under construction worldwide “is still higher now than across the last two decades.” Pointing out that the UK, France, Finland and Sweden have all reaffirmed their commitment to nuclear, while Poland, Romania and the Czech Republic are also planning to push ahead with new reactors.

According to the report, plant life extensions will offer a bigger market over the next twenty years than new build projects and will be an enormous boost for supply chains.

Frost and Sullivan state low carbon alternatives are, “cost-intensive…

Moreover, it is not possible for renewables to compensate for the large-scale energy production currently supported by nuclear sources, until the next decade.”

34 prospective AP1000 reactor operators have been trained in replica control rooms at the Sanmen and Haiyang sites in China. They have been studying for 18 months in preparation to take licence examinations with the China National Nuclear Safety Administration in November this year. On passing these exams, they will become the world's first licensed AP1000 nuclear plant operators. Another 36 students are scheduled to complete training at Sanmen next month.

Sanmen unit 1 is expected to be the first AP1000 to begin generating electricity in 2014.

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New start for US nuclear disposal A new waste disposal strategy was announced on 10 January by the Department of Energy. This new strategy would see a ‘pilot interim store’ in operation in 2021, with a focus on taking used nuclear fuel from current shut down power plant sites. By 2025 a larger ‘full-scale interim store’ would open, and by 2048 an underground

disposal facility would be in place to permanently store and dispose of the material.

Over the next ten years a search will take place for a suitable site for these facilities by “encouraging communities to volunteer to be considered” as well as perhaps approaching some that might have suitable geology. The communities may do so “in expectation of the economic activity that would result from the siting, construction, and operation of such a facility.”

This approach has been successful in both Sweden and Finland, where geologic disposal sites are now in the licensing stage. A similar approach has been taken in Canada and the UK for high-level wastes, and in Australia for low-level wastes.

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Price increase for Japan Tohoku Electric Power Co has applied to the Japanese government to raise their household electricity prices by 11.4% as the utility faces increasing costs for fossil fuel to meet demand as its nuclear plant remain closed.

Tohoku is the fourth utility to request increases due to higher costs since March 2011. Japan's utilities have been increasing their imports of fossil fuels to help meet electricity demand.

The Nuclear Supply Chain Action Plan by. Kris Bradshaw ⁄ rolls-royce plc

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he Government believes the UK has the potential to be a springboard for new nuclear development around the world. The country has a long history of nuclear generation and it is a legacy we can successfully build on. This presents huge opportunities for the UK supply chain not only in supplying to the domestic nuclear market, but also to seize international market share and to become a global leader in the export of nuclear goods and services.

With this vision in mind, the Government in partnership with industry, published its Nuclear Supply Chain Action Plan (NSCAP) in December 2012 at the NIA’s Energy Choices Conference. The overarching aim of the Plan is to provide long-term jobs and growth in the sector and to make sure the vital skills and capabilities required to support the rapid development of the new nuclear programme are available to industry, here, in the UK. The plan is based on the following specific objectives: →→ Maximise UK economic activity and growth from the nuclear

sector at national and local level, including employment and business opportunities for the UK supply chain.

→→ To boost job creation in the nuclear industry, and to ensure

that potential skills shortages do not act as a barrier to the future development of the industry in the UK. →→ To use the domestic nuclear market to enhance a sustainable and successful UK civil nuclear industry, and to use this basis as a lever to access export opportunities.

In the action plan, as well as assessments of the potential value of the nuclear sector, key issues preventing supply chain development and growth have been identified across three main themes; market access, capability and skills. These include: →→ Confidence Regarding the Government’s Commitment to

Nuclear: In order for the nuclear industry to maintain and increase investment and involvement in the sector it is important that the UK Government not only continues to convey its clear commitment to nuclear and the new build programme, but also that it delivers the necessary market framework to enable new build to come forward.

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→→ Clarity on the Forward Pipeline and Access to Contracts in

the Nuclear Sector: To undertake the investments required to meet the new build programme, supply chain companies will benefit from clarity on the timing and requirements of forthcoming contracts. →→ Availability of Funding for Key Training: There are funding pots available for skills interventions but there are ways for industry and Government to utilise them more effectively to best address the areas of most concern.

Actions to address these and other issues for the benefit of the supply chain are set out in the NSCAP, with a total of thirty actions to be implemented by Government and the nuclear industry collectively, including: →→ Establishing a Government / Industry partnership in the form

of a Nuclear Industry Council (NIC) to be co-chaired by the Nuclear Industry Association and BIS and DECC Ministers.

The NIC will focus on areas of common strategic interest to the UK civil nuclear industry. →→ Upgrading the NIA’s SC@Nuclear website to act as a central market portal for accessing nuclear information and contracts. →→ Working with the NIC and the NIA Programme Board to encourage developers and higher tier companies to provide enhanced clarity of the forward pipeline of contracts, making it easier for the supply chain to plan, prepare and compete for those contracts. →→ Setting up working groups of major companies from each sub-sector to identify challenges and the joint actions to improve readiness for new build.

The NIA report ESSENTIAL GUIDE FOR THE NUCLEAR NEW BUILD SUPPLY CHAIN will be launched on March 19th at NNB 2013 and will be available at NIauk.org

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The Government and the NIA are fully committed to ensuring the successful implementation of the NSCAP. Accordingly, a detailed implementation plan is now being compiled and both the Secretary of State co-chair of the Nuclear Industry Council (NIC) and the NIA Programme Management Board will monitor progress and be heavily involved in the implementation process.

To find out more, or if your organisation wishes to get involved in work relating to the NSCAP, please contact sophie. macfarlanesmith@decc.gsi.gov.uk at the Department of Energy and Climate Change, who are responsible for the action plan implementation programme.

Download the publication

The NASCAP is found on the Inside Government section of www.gov.uk: https://www.gov.uk/guidance-for-operators-of-newnuclear-power-stations#supply-chain-and-skills

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Changing the Nuclear Waste Management Game An introduction to Arvia and its unique solution for dealing with radioactive organic wastes

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olutions to tough nuclear industry challenges can come from the most unlikely of sources. The Arvia Solution, originating from a garage-come-laboratory somewhere near Crewe, is opening a game changing new option to nuclear waste managers for the disposal of their radioactive organic wastes.

Radioactive organic wastes, such as oils, lubricants and solvents, can present a significant disposal challenge during the operation or decommissioning of nuclear power plants.

Standard technologies such as encapsulation and incineration cannot always be used as a result of regulatory and economic restrictions. This has led to the adoption of temporary measures, such as stockpiling, whilst a solution for these wastes which fits both constraints is sought. Arvia Technology Ltd, which left the garage after 4 years of inhouse development in 2001, has such a solution.

Arvia’s journey over 11 years from the garage, through to University spin-out, to international business has been rapid as a result of the compelling nature of the technology it offers.

Its technology is based on the electrochemical oxidation of the organic component of the oily wastes. Barrels of radioactive oils, scintillants, lubricants and other organics are converted into carbon dioxide and clean active water which can be disposed of by conventional techniques.

This has the potential to significantly reduce the treatment challenge and to play a key role both in the disposal of legacy decommissioning wastes and in the on-going destruction of problem oils produced during normal site operation.

AN AWARD WINNING TECHNOLOGY The benefits offered by the award winning technology have gained the technology traction in the industry both nationally and globally. Arvia is currently working with Magnox Ltd to design a full scale rig, capable of destroying 1 litre of radioactive oil per hour, for the destruction of legacy low-level waste (LLW) and intermediate level waste (ILW) oils.

“Magnox has already made significant progress against our accelerated decommissioning programme. We are now focusing even more of our attention on the small number of challenging wastes that remain. We are excited to be working with Arvia looking at the potential to remove one of these wastes by scaling up the innovative technology that has already been successfully trialled on site.”

David Finchett Operations Manager at the Trawsfynydd Site

r Nigel Brown, co-founder of Arvia Technology Ltd and inventor of the D Organics Destruction technology. Dr Brown spent four years developing the concept in his garage.

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Martin Keighley, Arvia’s CEO, believes that the technology still has more to offer beyond its application to LLW & ILW oily wastes: “The beauty of this unique, simple, self-contained technology is that it acts as a platform - a new way of doing things - that has the potential to provide a waste treatment solution where there currently is not one.”

Move from mixed, organic and radioactive wastes that are unstable, hazardous to the environment and difficult to destroy...

How does the technology work?

The Arvia patented, electrochemical technology, the Organics Destruction Cell can treat emulsified radioactive organic wastes through: →→The adsorption of the organic from the emulsification water using Arvia’s unique adsorbent, Nyex™ →→The settlement of the adsorbent to form a bed between two electrode plates →→The application of an electric current across the adsorbent, destroying the organic and regenerating the adsorbent

The radionuclides are transferred from the organic into the water, and the water can be disposed of using existing disposal routes.

...to a simpler, safer and cost-effective future for waste management in the nuclear industry

Via Organics Destruction

MEETING INDUSTRY NEEDS Arvia is actively engaging with industry to match its technology’s features with the industry’s pressing needs.

Initiatives include a bursary from the Nuclear Decommissioning Authority (NDA) to deliver a Doctorate in Nuclear Engineering in collaboration with Professor Simon Pimblott of the School of Chemistry and the Dalton Cumbrian Facility (DCF), The University of Manchester.

The higher degree, aligning research with industrial challenges, will study how Arvia’s technology can be applied to the treatment of radioactive sludges. Darrell Morris, NDA’s Research Manager, notes that the collaborative projects play a key role in providing solutions to the many technical challenges posed by decommissioning: “The development of effective solutions benefits from input from both academia and industry. I'm really excited to see what comes from the collaboration between Arvia and the DCF.” Arvia, in collaboration with the National Nuclear Laboratory (NNL), has won the support of the Technology Strategy Board in the form of a grant from its ‘Developing the Civil Nuclear Power Supply Chain – Feasibility’ competition. This initiative is supported by the NDA and is aimed at funding the most promising innovative technologies involved in the supply chain. Arvia’s and NNL’s winning entry is focusing on treating high alpha and plutonium contaminated oily wastes at the Sellafield site in Cumbria.

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

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What are the benefits of deploying the technology?

The benefits of the Arvia Organics Destruction Cell: →→99.9% of organics are destroyed →→Secondary waste is minimal →→The entire process takes place within a single compact transportable unit →→Operation is at room temperature and pressure, minimising risk and cost →→The patented Nyex™ adsorbent is regenerated in-situ and so is not a process consumable

Oils

PCBs

Scintillants

While David Louden, Waste Strategy Manager at Sellafield Ltd, is also keen to see the outcome of this collaborative project: “The NNL/Arvia proposal to develop this technology is of strong interest to Sellafield Ltd and I look forward to discussing the results.”

Arvia is also sharing platforms with international players at key industry events; the company recently presented its technology solution jointly with Areva at the Waste Management Symposia 2013 in Phoenix, Arizona. The potential of these partnerships to add to Arvia’s portfolio of solutions presents both Arvia and the nuclear industry with an exciting opportunity – a chance to collaboratively tackle some of the industry’s key waste disposal challenges with an innovative technology.

MOVING AHEAD So what does 2013 hold for Arvia? Martin Keighley says that this year is all about delivery: “Through heavy investment in R&D and collaborative projects, Arvia has demonstrated that its technology is a compelling and commercially viable tool for treating radioactive oily wastes. Our focus this year is on delivering our technology to the global market and helping our customers realise the benefits that we have proved our solution brings.” by. Michael Conti-Ramsden ⁄ Arvia technology ltd

Further information Cleaning Agents

Solvents

Chelating Agents

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VISIT arvianuclear.com CALL 0845 123 1264 Email lucy.miller@arviatechnology.com janine@marickcommunications.co.uk

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Positively Promoting Nuclear Power By. Lizzie Murray ⁄ nuclear fIrst doctoral training centre

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hilst busy lowering controls rods into our PWR (simulator) at Manchester Museum last month we were approached by an angry German teenager.

Outraged that we appeared to be promoting nuclear power to children, she considered our exhibit to be immoral and irresponsible. Our colleague, Josh, drew the short straw and spent a long hour patiently explaining that we were simply attempting to make people more aware about radiation and nuclear power. Meanwhile, the luckier of us edged away and continued a guessing game with some slightly less antinuclear children: Which contains more radiation; bananas or Brazil nuts?

We are a group of students from the Nuclear FiRST Doctoral Training Centre, a collaboration between the universities of Manchester and Sheffield, put together to try to meet the need for postgraduate researchers in the new nuclear ‘renaissance’. We are a diverse group with backgrounds in chemistry, physics, engineering and environmental sciences.

When we’re not doing our own research, which varies from actinide separation chemistry to robotics, we can sometimes

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be found in schools, museums and science fairs, trying to increase public awareness about nuclear power. With the exciting and promising future of nuclear power in the UK, changing public perceptions is more important than ever so as part of our doctorates we are required to do our bit to help.

If you try to find us, be warned; we may or may not have taken on the identities of three superheroes: Alpha Man, Beta Man and Gamma Girl!

‘Hitchhikers guide to Nuclear’ is a downloadable podcast produced by Nuclear FiRST students which discusses ‘Nuclear in the news’ in a light-hearted, informal and (hopefully) entertaining style. One feature of the monthly production is to take the microphone onto the streets of Manchester and pose questions to the general public to seek their views on current affairs in nuclear related topics.

The responses are interesting and extremely varied, ranging from ‘isn’t nuclear waste what gives spider man his powers?’ to insightful thoughts on the decisions currently facing West Cumbria via the odd ‘get that mic out of my face, you hippies’. The podcast is also a fantastic opportunity

The Twittersphere to collaborate with other nuclear orientated postgraduate centres: EngD and NTEC students who are based at the Dalton Institute at Manchester. The University of Manchester continues to function as a hub for nuclear research, linking industry and research centres from around the country.

Our hard work was recently recognised at the Energy Institute Awards. We received an award for ‘setting a new standard of excellence and innovation’ within the energy industry. The leader of the outreach programme, Sarah Heath, received 'highly commended' in the communications category for ‘public and stakeholder engagement’. As the only University to be nominated we felt extremely honoured to be there among many multi-national companies.

Whilst sitting at the black tie ceremony in the Sheraton Hotel was worlds apart from running around Manchester Museum dressed in a green tutu and legwarmers, it was extremely pleasing to have our work acknowledged. I hope our efforts to improve public perceptions of nuclear power will continue to make a difference.

If we have learnt one thing over recent months it is that the rumour mill and Twitter are natural bedfellows. At such a pivotal time for the nuclear industry, speculation has been mounting on various questions, in particular around the strike price negotiations.

Whilst I would hope that we at the NIA don’t live in a #nuclear bubble (we do also have an unhealthy obsession with all things political!) admittedly you do choose who you follow – and at the NIA our twitter feed certainly resembles a smorgasbord of views on energy. Being aware of these views has proved just as important as getting our own information out there. So even if we can’t always comment on the speculation of the day, we do know what is being said.

Twitter however is a force for good, not just for mischief and as a source of information its reach is arguably unparalleled. Two key activities in particular stand out as generating a great deal of interest. Most recently we saw the publication of the Energy & Climate Change Select Committee Report on New Nuclear and a whole host of comment that followed. Similarly comments made by Alistair Buchanan of Who to follow?

Ofgem made a big splash Want information on nuclear – they certainly were a (if and other relevant topics? not all too surprising) wake This issue we recommend you up call on the energy crisis follow: facing the UK in the not very distant at all future.

And finally, if you are @DaltonNuclear reading this from the @Number10press Nuclear New Build 2013 @EnergyLiveNews conference, join in the con@BritEnergyCoast versation #nnb2013 Twitter Count Followers: 1,028 Tweets: 754

@NIAUK

Nuclear Tops YouGov Poll for Britain’s Future Energy Needs - http://www.niauk.org/promos /1788-nuclear-tops…

@Number10press – 'Number of people studying engineering and computer science has gone up quite radically,' says PM. Find out more: http://ow.ly/hfXbI #PMQs

2013 | Spring — 15

16 — spring | 2013

Energy Choices 2012 By. Rupert lewis

2012 was brought to a close with the NIA’s flagship Energy Choices conference in London. The event was extremely well attended with over 300 NIA members, several journalists and numerous industry representatives present.

Standout speakers included Energy Minister, John Hayes and Business and Enterprise Minister, Michael Fallon who both spoke in praise of the industry as they announced the Government’s Nuclear Supply Chain Action Plan.

Explaining the Action Plan, Michael Fallon said: “This action plan is an important part of our work with industry to shape a vibrant UK nuclear industry, and to ensure the UK exploits the commercial opportunities that exist, and is a leading player in the expanding global nuclear market.”

John Hayes announced the creation of 500 skilled jobs at the Sellafield nuclear site in West Cumbria. These roles will include operations and maintenance staff, engineers, and project managers.

Along with the launch of the NIA’s eagerly anticipated 'Capability Report of the New Build Nuclear Supply Chain', updates were given by EDF Energy, NuGeneration Ltd and Horizon Nuclear Power, including a Q&A session with Hitachi.

There were panel discussions about innovation in nuclear, skills and the supply chain, public confidence and ways of dealing with the legacy waste.

Another highlight of the conference was a new format session with Dr Tim Stone CBE. Interviewed by Lord Hutton, he spoke in some detail about the highlights and lowlights of the past few years. He also heaped praise on the industry, describing nuclear as a ‘sound investment’ but insisted that there are still challenges to overcome including the need to constantly evolve and improve.

Following the conference, the NIA/NI Annual Dinner took place at Grosvenor House Hotel. The black-tie event attracted over 1200 industry representatives and was an excellent evening, bringing a close to a wonderful year in the industry.

2013 | spring — 17

2013 UK Civil Nuclear Energy Showcase by. Harriet Smith ⁄ UK Trade & Investment

UK Trade and Investment, in partnership with the NIA hosted a successful UK Civil Nuclear Energy Showcase on 5th and 6th February 2013. The event, held at the Holiday Inn Regents’ Park, attracted 349 people across two days. This included 200 UK delegates, and 96 international delegates from Belgium, Bulgaria, Canada, China, Czech Republic, Hungary, Jordan, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, South Korea, Turkey, UAE, and Vietnam.

“ I want to see this industry grow and prosper.

We have potential that has built up and been developed over 50 years, we must harness it” David Powell GE Hitachi Nuclear Energy The showcase was supported by more than 50 prominent UK speakers, including keynote addresses by Keith Parker, Chief Executive of the NIA, Mark Higson, Chief Executive of the Office of Nuclear Development, Lord Hutton, Chairman of the NIA, and Professor Paul Howarth, Managing Director of the National Nuclear Laboratory.

Sessions on new build and decommissioning ran in parallel on both days, ref lecting international delegate interests. Engaging speakers delivered a message of UK experience, expertise, and excellence across the industry, and reinforced the UK’s competence in terms of reactor technology.

A consistent message that emerged was the need to consider operational support and decommissioning, not only capital

18 — spring | 2013

expenditure, when undertaking a new build programme. There was a strong theme around 'lessons learned', and the UK’s position to help overseas programmes avoid similar pitfalls through shared experiences.

“ We aim to learn from the great experience that the UK has, and today provides an opportunity to meet the key people from across the industry” Chenxiu Song Ministry of Environmental Protection, PRC The afternoons continued with illuminating presentations from the international delegation, including Mr Peigen Yu, Vice President of the China National Nuclear Corporation, Dr Ju Wang, Vice President of the Beijing Research Institute of Uranium Geology, Dr Khaled Toukan, Chairman of the Jordan Atomic Energy Comission, and Pavel Solc, Deputy Minister of the Ministry of Industry and Trade in the Czech Republic.

One to one meetings and networking were popular throughout the day, with delegates pleased to be able to meet so many relevant contacts in one place. Feedback from the international and UK participants alike has been extremely positive, and connections made are already being taken forward.

UKTI is considering how to build on the event in the future to support UK companies in winning international contracts, along with realising the Government’s ambition to double trade to £1 trillion by 2020.

NEWS IN BRIEF

Cumbrian Councils to explore waste options after veto Following Cumbria County Council’s vote to withdraw from the Managing Radioactive Waste Safely (MRWS) process, the leaders of Copeland and Allerdale borough councils have written to the Secretary of State to arrange a meeting, “to discuss future processes to resolve the issue of long-term disposal of higher activity nuclear waste.”

Both local borough councils had voted in favour of moving to ‘Stage 4’ but were vetoed by the county council.

Stage 4 would investigate whether or not the proposed sites were geologically suitable.

In response to the vote, Edward Davey MP outlined his commitment to resolving the waste issue, “I am confident that the programme to manage radioactive waste safely will ultimately be successful.”

“The fact that Copeland (and Allerdale) voted in favour of entering the search for a potential site for a GDF demonstrates that communities recognise the benefits associated with hosting such a facility.”

Outlining why the county council had rejected progressing to ‘Stage 4’, Council Leader, Eddie Martin, argued that there was enough “doubt” about West Cumbria’s suitability for a Geological Disposal Facility to justify a ‘no’ vote. He also suggested Cumbria’s successful tourism industry could be harmed adding, “We fear if the area becomes known as the place where nuclear waste is stored underground, the Lakes’ reputation may not be so resilient.”

Events following the vote have shown that both local and central Government have not deserted the nuclear waste issue and it has been stressed on a number of occasions that the decision will have no impact on the UK’s critical new build programme.

Hitachi reactor design to be assessed

A Generic Design Assessment (GDA) will be carried out in the UK on the Advanced Boiling Water Reactor (ABWR), which is the only Generation III + reactor which has been in operation anywhere in the world, with four ABWRs in Japan, and three under construction in Japan and Taiwan.

John Hayes, Minister of State for Energy, said: “New nuclear has a central role to play in our energy future, delivering secure, low carbon power and supporting jobs and economic growth.

Hitachi's commitment to the UK is extremely welcome, and I am determined that we work closely with the company to deliver their planned investment.

“We must however be absolutely sure that any reactor used in this country meets our rigorous safety standards. That's why I'm asking the Office for Nuclear Regulation along with the Environment Agency to conduct a thorough examination of the reactor design proposed for the Wylfa and Oldbury sites.”

NIA member Doosan Power Systems, along with contributions from leading nuclear companies and regulators, has developed Stage 2 of The Essential Guide for the Nuclear New Build Supply Chain. Stage 2 has been developed with the input of the Technology Vendors, Utilities and a number of Tier 1 companies who have major involvement in the nuclear industry. Input has also been provided by LAUNCHING DECC, BIS and the Health at nnb 2013 and Safety Executive (HSE) to ensure it has the widest possible cross-industry support and endorsement.

NIAUK.org/supply-chain-guide

2013 | spring — 19

Strength in Numbers

NNL Helps Train Iraqi Scientists

Twenty four members of 4 – 5 Gray’s Inn Square, including 7 QCs, are to join Thirty Nine Essex Street Chambers.

This powerful union will take the number of barristers at Thirty Nine Essex Street to 118 with 37 QC’s. It will deepen Thirty Nine Essex Street’s existing strength in core areas such as public and administrative law, environmental and planning law, common law, commercial and regulatory law, as well as its other areas.

This dynamic amalgamation and consolidation of expertise will create one of the UK’s largest multidisciplinary specialist sets.

The UK National Nuclear Laboratory hosted a training course for Iraqi scientists who will work on the dismantling, decommissioning and decontamination of nuclear facilities built in Iraq during the Saddam Hussein regime.

The week-long training visit to the north-west of England is the culmination of a two-year programme carried out on behalf of the European Commission by the UK's National Nuclear Laboratory (NNL) and Italy's Insubria Centre for International Security. The training programme is designed to safely speed up the nuclear clean-up operation in Iraq and to retrain scientists for careers focused on nuclear decommissioning and waste management.

The visiting scientists and engineers have considerable nuclear awareness and experience in their fields. Over the two years of the programme they have spent time with experts from the UK and Italy learning about best practice in waste management and site clean-up.

The delegation were able to see UK expertise at first hand, visiting the NNL facility on the Springfields site near Preston, the National Low Level Waste Repository in West Cumbria, waste management plants on the Sellafield site, NNL's f lagship Central Laboratory at Sellafield and the company's non-active Rig Hall at Workington.

© 2005 David Monniaux

2013 Nuclear Glossary Now Avaliable A revised edition of the Burges Salmon 'Glossary of Nuclear Terms' is now avaliable online. Peer reviewed by leading industry figures, this free glossary is an invaluable resource and copies can be downloaded from the Burges Salmon, NIA and SC@nuclear websites. For more information on the Glossary and future updates please contact gareth.davies @burges-salmon.com

Hinkley Point C: An Opportunity to Power The Future EDF Energy has published Hinkley Point C: An Opportunity to Power the Future, a document illustrating the benefits of the new nuclear build project. The report can be downloaded at edfenergy.com The document outlines a number of key benefits of the project: →→ Hinkley Point C’s two reactors will provide

7% of the UK’s future electricity needs for at least sixty years. →→ It offers the best value for meeting climate change targets and will be

competitive with ALL large scale forms of low carbon energy including on-shore wind. →→ Hinkley Point C is “shovel-ready”. During construction, 25,000 people will

work on the project.

20 — spring | 2013

SNAPSHOT

British SMEs Present Expertise to China In February a group of eight British SMEs won the opportunity to present their businesses to a visiting delegation of Chinese representatives at the Nuclear Decommissioning Authority’s (NDA) Harwell site.

Whittled down from a group of over 40 entrants, the final group were given an unrivalled opportunity to outline their ideas and publicise their expertise to a group from China’s commercial and policy sectors.

Utilising the innovative ‘Dragons’ Den’ format, the companies from the UK’s decommissioning supply chain were all given 15 minutes to present to the visiting delegation. Using simultaneous translation, the 20-strong Chinese group took on the role of the ‘Dragons’.

Ron Gorham, the NDA’s Head of Supply Chain Optimisation and SME Champion said, “The presentations highlighted

unique and creative solutions to some difficult decommissioning challenges, and the level of innovation was hugely impressive.”

He added, “Feedback from the event already indicates that the Chinese were very impressed by the level of capabilities available in the UK”.

To assist the Chinese delegates, a brochure will be put together highlighting the SME experience and expertise of the British companies present and those unable to attend the event.

The team visiting from China included representatives from the China National Nuclear Corporation (CNNC), the China Guangdong Nuclear Power Holding Company (CGNPC), the China Atomic Energy Authority (CAEA), the National

Nuclear Safety Administration (NNSA) and the Ministry of Environmental Protection (MEP).

Along with an impressive set of presentations, the delegation was also treated to a tour of the Harwell site which closed in 1990, and is currently being decommissioned by the NDA. Head of the UKTI China Energy Team from the British Embassy in Beijing, Matthew Downing said, “The visit to Harwell provided a valuable opportunity for the Chinese representatives to see decommissioning at first hand, ask questions, and exchange views.

“They went away impressed with the expertise demonstrated, the challenges overcome and the excellent decommissioning progress being made.”

2013 | spring — 21

22 — spring | 2013

© Direct Rail Services — www.directrailservices.com

IN VIEW

Safely Transporting Nuclear Direct Rail Services (DRS) are the sole operator approved to transport nuclear material by rail and as a result are Britain’s leading transporter of spent nuclear fuel, decommissioning waste and nuclear construction support.

A wholly owned subsidiary of the Nuclear Decommissioning Authority, the company was established in 1995 to provide strategic rail services to British Nuclear Fuels Limited.

Over 90% of DRS trains arrive on time and the company have a 100% delivery performance in the nuclear sector.

DRS carry on average 7000 million net tonnes of general freight each year, helping to cut CO2 emissions by approximately 100,000 tonnes when compared to road haulage.

This is the equivalent to taking 150,000 lorries off Britain’s roads.

In 2013 alone DRS have prevented 14,135,302 kilograms of CO2 entering the atmosphere

2013 | spring — 23

UK Companies – Leading the World in Decommissioning by.Steve Wood ⁄ REACT Engineering Limited

S

ince the Tsunami hit the Fukushima Daiichi nuclear power plant, the world has woken up to the effects natural disasters have on the modern way of living.

We are also more aware of the incredible challenges posed in recovery and clean up following the event.

TEPCO (the nuclear power station operator in Japan) has had to change overnight from a company – with a mind set that operates nuclear power plants in an environment of certainty - to a context of complete uncertainty, dealing with extreme recovery, clean up and decommissioning issues.

With this level of political, economic, human, technical and logistical challenge, the Japanese had to strip away all previously conceived ideas, protocol and cultural barriers and find the people and technology to help – urgently.

This search has led them to two small, innovative companies based in West Cumbria, REACT Engineering Ltd and Create Technologies Ltd (Createc). Both are the brain child of the original three owners, Trevor Craig, Steve Knight and Pete Woolaghan, and both are rooted in the application of technology to solve problems.

“We started REACT in 1994 to change things and really make a difference in the nuclear decommissioning industry” Pete Woolagan REACT Engineering Limited Createc was formed out of REACT when Matt Mellor joined them following a doctorate from Oxford, not only bringing expertise in medical imaging but also an understanding of technology integration. Matt quickly realised that the industry needed cutting edge innovation combined with practical common sense and he was the catalyst for the creation of Createc, which now employs six research scientists specifically engaged in R&D for the nuclear, defence, security and medical imaging industries.

I n 1994 Trevor Craig, Steve Knight and Pete Woolaghan started REACT Engineering to change things and really make a difference in the nuclear decommissioning industry.

24 — spring | 2013

delegation from TEPCO and Hitachi visited the teams in Cockermouth and A Cleator Moor, Cumbria at the end of 2012 and had established a contract for development of N-Visage within just a couple of weeks.

The Japanese connection came about when Dr Trevor Craig and Steve Wood (MD of REACT) were invited to Tokyo by the NDA and NIA. “We were part of a delegation for an initiative by UKTI to showcase the UK’s expertise in decommissioning and clean up,” explains Trevor.

“Once TEPCO saw how our ground breaking N-Visage 3-D gamma imaging system and unique software could identify radiation sources, build up a dose map and, more importantly, be used as a ‘What if’ scenario tool for intelligent strategic planning of clean up and decommissioning operations, they got very excited. They couldn’t believe what they had seen.”

Steve continues: “One senior executive apparently said that it was like finding a rare Picasso in the attic. They’d been offered a lot of radiation detection systems from major global suppliers, but considered ours to be unique and one of the most exciting.”

Based on this initial reaction, TEPCO commissioned Hitachi GE Nuclear to visit REACT and Createc to explore the technology, its capabilities and its potential. At the end of a very intensive period of technical probing by some very eminent engineers and scientists, their commercial team was f lown out and at the end of 2012, a contract was signed between Hitachi, REACT and Createc to develop a system specifically for the problems faced at Fukushima Nuclear Power Plant.

N-Visage™ Compact Multi Sensing Gamma Imager

Pete Woolaghan visited Japan on a subsequent visit to Tokyo organised by Britain’s Energy Coast Business Cluster and was inspired by the reception he received: “It was fantastic. The Japanese really understand how we are going to make a difference and they have removed barriers at all levels to make this happen.”

As the original three owners of REACT Engineering always say, “Our success is down to the people we recruit and the environment we provide so that they develop as professionals and as people to be the best that they can be!”

Not bad for two small companies from West Cumbria who are leading the world because they have a passion to make things happen and just see things differently.

Further information

For more information on REACT Engineering Ltd please visit www.react-engineering.co.uk For more information on Create Technologies Ltd please visit www.createc.co.uk

rocess Plant with “Hot Spots” shown in N-Visage™. N-Visage uses a P combination of sensors, 3D technology and interpretation software to see inside vessels and plant, showing concentrations of radioactivity and enabling an operator to predict the impact of different approaches to shielding, clean up and decommissioning.

2013 | spring — 25

AREVA Announce Partnerships with 25 UK companies

AREVA has signed memoranda of understanding with 25 UK companies to supply components and services for a new generation of European Pressurised Reactors (EPRs) in the country.

These companies cover a breadth of products and services, including valves, forgings, pumps, cranes, electronics, piping, tanking and refrigeration units.

Together with agreements already announced with Rolls-Royce, the scope of work could be worth up to four hundred million pounds to British industry.

Business Minister, Lord Marland, said: “AREVA’s announcement that it plans to grow its commercial relationship with companies in the UK is good news for the nuclear industry and supply chain.

There are important commercial opportunities in the sector which we will work in partnership with industry to develop. “[In December] we published the Nuclear Supply Chain Action Plan which

outlines how we can ensure that we are competitive and ready to deliver.

The Nuclear Advanced Manufacturing Research Centre stands ready to work with potential suppliers. And we will be publishing our overarching nuclear industry strategy [in 2013]”.

In all, AREVA has already identified 50 companies based in the UK with potential capability to meet the scope.

Of these 50, the 25 companies who have signed MOUs are pre-qualified and for the other 25, AREVA is committed to start a pre-qualification process once it receives a firm order from EDF Energy.

The Government backed Nuclear Advanced Manufacturing Research Centre has agreed to support all 50 UK companies, to pre-qualify, qualify and then bid for work.

For further information on these agreements or the EPR reactor please visit www.areva.com

( left to right) Humphrey Cadoux-Hudson, EDF Energy; John Padbury, Darchem Engineering Ltd; Philippe Knoche, AREVA; Lord Marland, Business Minister; Steve Court, Nuclear AMRC.

“AREVA is delighted to take part in the re-birth of the UK nuclear new build industry. We are committed to making as much use as possible of the UK’s excellent engineering skills in the construction of the EPR reactor and to develop these skills further. We hope that the prospect of a fleet of EPR reactors will provide an incentive to UK companies to invest. Work is already under way” Philippe Knoche Chief Operating Officer, AREVA Areva

26 — spring | 2013

The

25

→→Airedale International Air Conditioning Limited →→Bendalls Engineering →→Bilfinger Industrial Automation Services Limited →→Carpenter & Paterson Ltd →→Castell Safety International Ltd →→Centronic Ltd →→Clyde Union Pumps →→Cooper Crouse-Hinds UK Ltd →→Darchem Engineering Limited →→Delta Controls Ltd →→Doosan Power Systems Ltd →→Flowserve Flow Control Ltd →→Independent Forging & Alloys →→IPP Scomark Ltd →→Metsec Plc →→Munro & Miller Fittings Ltd →→NES Ltd →→REEL UK Ltd →→Siempelkamp Nuclear Technology UK →→SPX Flow Technology →→The Clarke Chapman Group Limited →→Ultra Electronics Ltd →→Velan Uk →→Weir Valves & Controls UK Ltd →→Wyman-Gordon Ltd

2013 | spring — 27

Artist’s impression of Hinkley Point C courtesy of EDF Energy — www.edfenergy.com

The electricity in our homes is an extraordinary thing. We flick the light switch, plug in the vacuum cleaner or turn on the computer and it’s there. We take it for granted.

But instant power is only available because of years of planning, construction and investment. The lights come on because politicians and industrialists in the 1960s and 1970s invested long-term in nuclear power.

Nuclear energy is secure, reliable and now provides enough low-carbon electricity for the equivalent of more than half the UK’s homes. Output in 2012 was the highest for seven years.

But although we are extending their lives for seven years, plants will start to close in the next decade. So too will many fossil-fuelled power stations. Decisions that will power the coming decades have to be taken now.

In 2003 the country almost closed the door on nuclear power.

Now in 2013 that door is ready to be opened again. But it has not been like flicking a switch — those years have not been easy. However, successive governments have created a broad consensus about the need to include nuclear in the future energy mix. This was driven by the need for energy security and in the face of tough climate change targets and volatile global prices. Nuclear is the long-term consistent guarantee that the UK will have the low-carbon energy it needs.

28 — spring | 2013

Getting to this point has required courage, vision and leadership from policy-makers and the energy industry. For EDF it took hard engineering work to get the first new nuclear project ready — and we have invested a significant amount of money in it.

EDF Energy now has a fully costed project with a stable, safe, approved design for two new nuclear reactors in Somerset — the first in a generation. The benefits to the economy will be enormous in jobs, skills and taxes. Well over half the value of the construction could be spent in the UK, and 1,200 Somerset firms have already registered interest in the project. This is a great opportunity to show the world Britain’s industrial stamina, and now is the time to move from policy to delivery.

The project’s budgets are fixed and take into account lessons from similar projects around the world, as well as the costs of restarting nuclear construction after 18 years. Now we are ready to go ahead. In the next few weeks we and the Government will make the long awaited decision on nuclear with far reaching implications for Britain’s long-term future.

The decision on whether to give planning permission has to be made by March 19. But consent will count for little if the economics of the project have not been confirmed. Last week Centrica, which owns British Gas, decided to pull out of new

We can’t Waver on Flicking the Nuclear Switch By. Vincent De rivaz cbe, edf energy

nuclear build in the UK. But that does not change the need to build new clean, affordable and secure capacity. One company can decide not to invest, but that’s not an option available to the country.

But the decision shows the challenge that the Government faces. EDF Energy and the Government have to solve a common problem in attracting investors. We know the potential is there, but cannot sell them our vision without showing them the price that will be paid for the electricity generated. We are working with the Government on the solution — to agree a fair price that is balanced for both consumers and investors.

Renewable energy cannot be the whole solution for consistent and reliable supplies. Nor can coal or gas do enough to meet climate-change targets. We welcome the contribution shale gas might make, but few believe it will prove a game-changer in the UK, where population density, geology and environmental standards present far greater challenges than in the US. Nuclear energy is reliable, secure and low-carbon. But nuclear power stations need far more upfront investment in their construction. It is only reasonable that those who take the risk of building them can be sure of a fair return.

The way of doing this is called a Contract For Difference (CFD). If the price of energy rises above an agreed figure, the

extra money is returned to consumers. If the price falls below it, the consumer pays the difference. The fixed price stimulates investment in low-carbon energy such as wind and nuclear with high upfront costs because they help to secure finance.

When details of the CFDs are agreed they will show how competitive new nuclear is compared with other forms of lowcarbon energy. But it is not right to compare an agreed future price with the current wholesale price. It must be compared with expectations for the next decade, when Hinkley Point is up and running, and further out, when the best forecasts show prices rising as power stations close, a full price being paid for carbon emissions and demand increasing in an economic recovery. Nuclear generation insures against volatile world prices for gas and oil.

This is not the time to waver on this vision for the future.

The Government knows what is needed to move from policy to delivery. The benefits will be felt by consumers for decades.

They will continue to be able to flick the switch and get secure, affordable, and low-carbon energy.

Article was originally published in the Times on Tuesday 11th February 2013.

2013 | spring — 29

Small is Beautiful by. kirsty alexander

Reversing the trend to scale up reactors to larger and larger economies of scale, small modular reactors (SMRs) could offer encouraging advantages for developers, supply chain and electricity consumers.

Our recent SMR event, kindly hosted by Bird and Bird, explored key issues, including regulatory requirements, market potential, licensing, technology and reactor design, and financing.

Interest is growing following the announcement that Babcock and Wilcox and mPower SMR will receive US government funding up to $452 million for five years to accelerate design and licensing. The US is keen to license by 2017 to enable deployment by 2021. The Department of Energy anticipates an SMR market to develop in the US; the UK therefore needs to respond.

Britain is one of the best places in the world to invest in nuclear. We can leverage the value of the Generic Design Assessment process; we have a trained and ready workforce; diverse experience with nuclear power and strong political will behind new build.

Large power stations provide the best fit to the UK grid, however, the wide variety of possible designs, implementations, and locations for SMRs create new opportunities that must be considered.

Because much of the capital cost of a nuclear plant f lows from the cost of finance, SMRs are advantageous in that they allow the possibility of phased construction with potential savings on financing cost and reduced financial risk.

The challenge now is to make the business case focused on benefits. There will be operational cost savings from simplified design, reduced financial risk exposure. The UK industry must navigate the potential opportunities, whether to develop joint ventures, go it alone, focus on the supply chain to become a strategic partner, or niche supplier.

30 — spring | 2013

Jeff Benjamin, Executive Vice President of Engineering at Rolls Royce explained that near term Small Reactor technology options based on Generation III and Light water reactor show potential, particularly given standard fuel and licenseability. However, Benjamin warned the key challenge is to develop and deliver a viable life-cycle business case and that standardisation is essential.

Kevin Hesketh, senior fellow with National Nuclear Laboratory also highlighted the advantages of a faster return on capital with short construction times. This could lead to more favourable borrowing terms if investment is perceived as being less risky.

Although a standardised design is recommended to reduce technological, financial and regulatory risk, a new economic model may be required. Speakers highlighted the need to develop a new business case. For example, in developed countries with centralised generation SMRs may need to be grouped into large power stations to be competitive.

Looking beyond the UK, Prof Richard Clegg, Global Nuclear Director, Lloyd’s Register, said that SMRs are an attractive option for developing countries with small electricity grids and less developed infrastructure.

Kevin Hesketh also highlighted the possible role for SMRs in countries which shift to decentralised generation, which would bring enormous promise in terms of reduced system costs (see OECD-NEA Report: Nuclear Energy and Renewables – Systems Effects in Low Carbon Electricity Systems, 2012).

As with all emerging technology, it is vital that we think creatively about potential applications. Depending on reactor design, SMRs could potentially dispose of existing plutonium stockpiles. There is also potential for them to be used as an industrial heat source, baseload supply to back up variable generation, or to enable the decarbonisation of transport.

NIA Working Groups

The NIA working groups and group meetings are an ideal opportunity for NIA members to meet, network and discuss current issues in a closed environment with like minded professionals.

Each of the six groups focuses on specific aspects of the industry; New Build, Decommissioning, Legal Affairs, Quality and Nuclear Exports, along with a group working on External Relations. Meetings are held throughout the year and stretch out to all four corners of the UK to help ingratiate the membership.

Opportunities are always made available for members to present, exhibit and sponsor these events which consistently attract a strong collection of members and are often the scale of a one day mini conference.

to find out more about the NIa working groups please contact stephanie.mckenna@ niauk.org

2013 | spring — 31

NEW NIA MEMBERS

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

Bruck UK Limited Bruck are specialists in the manufacture of high quality forged components for industrial facilities that require the highest standards. Bruck is a well-known supplier for a wide range of power plant equipment and applications. They have a large portfolio of forged products and components for the nuclear industry.

For disposal of nuclear waste, Bruck offers innovative tailor made solutions for transportation and storage casks.

Bruck UK operates in the UK as the Sales Offices of Bruck Forgings Germany.

Lafarge Cement UK Lafarge Cement UK are the No1 Market leader in cement products. Their range includes products manufactured with specific applications in mind, promoting ease of use, reduced wastage and high levels of performance alongside general purpose cements. They provide a range of ultra-fine cements Microcem that are used within nuclear engineering. This range is manufactured in the UK and is distributed worldwide.

Virtus Development & Construction Consultants Limited Virtus are currently delivering services for the phased redevelopment of a new nuclear fuel production plant on a nuclear licensed site. This includes project and cost management for decommissioning and demolition of nuclear facilities, construction project management of new nuclear facilities and project controls for nuclear projects (cost, risk and schedule).

Westlakes Engineering Ltd Westlakes Engineering is an independent consultancy practice which provides the following core services: →→ Civil Engineering

welcome

→→ Structural Engineering →→ Architectural Design →→ Environmental Consultancy →→ Low Carbon and Renewable Energy

IMI Components Ltd IMI Components offers a comprehensive design development, manufacturing and testing capability for high precision machined, fabricated and welded components and assembles exclusively for the civil nuclear sector.

James Fisher Nuclear Ltd James Fisher Nuclear delivers specialist engineering, design, manufacturing and technical services.

Areas of expertise include design consultancy, engineered containments and glove boxes, shielded equipment and facilities, radiation tolerant equipment, safety related systems, trials, training and simulation, plant characterisation, building services, mechanical and remote handling, manipulators and tooling, remote inspection, modular and containerised systems, radiation protection instrumentation, calibration and service, X-ray systems and NDT services.

32 — spring | 2013

Consultancy

→→ Management Services

Pillsbury Winthrop Shaw Pittman LLP Pillsbury has a global nuclear energy practice with 50 years of nuclear experience and 25 dedicated nuclear lawyers. Pillsbury's nuclear power practice is full scope advising clients on nuclear new build, financing, international law, regulation, waste management and decommissioning.

Swanbridge Hire and Sales Ltd SHS are an established provider of all aspects of access scaffolding and thermal insulation. They are used to working in highly regulated environments.

SHS have an excellent Health, Safety and Environment record and feel they can deliver to the nuclear market.

Within the nuclear sector, Westlakes Engineering Ltd offer a cradle to grave, full project lifecycle approach.

WSP Environment & Energy WSP Environment and Energy is part of WSP and GENIVAR, a world-class professional services firm with 14,500 staff in over 300 offices worldwide. Their support to the nuclear and radiological sectors covers the many aspects of the nuclear fuel cycle. This includes; uranium mining, site assessment, radioactive waste management, decommissioning, environmental remediation and aspects relating to the NORM industries. They combine specialist environmental expertise with other technical designers and engineers from across WSP Group Plc or if necessary from Delivery Partners and Associates.

OPINION

PowerPolitics “…we should not overreact to specific snapshots in time, and must take the longer view.”

Mark Higson (Chief Exectutive of the OND) recently likened the UK nuclear new build programme to a giant rollercoaster, warning we must be prepared for successive highs and lows.

He cited the decision by RWE and E.On to sell Horizon as a notable low – interpreted by nuclear opponents at the time as the programme’s ‘death knell’ – but noted this was more than matched by the high of Hitachi’s decision to buy the company just seven months later. Multibillion pound national infrastructure projects will always be fraught with difficulty – it is the nature of the beast.

His point is that we should not overreact to specific snapshots in time, and must take the longer view. This is surely correct.

As I write this piece there have been some important new lows: first Centrica’s decision to withdraw from the Hinkley Point C joint venture; and most recently media reports of deadlock between EDF Energy and Government on the all important CfD strike price negotiations. These developments are undoubtedly serious, but will inevitably appear different viewed against the longer perspective.

In any case it is important to remember that over the past few months EDF have made real progress, in short succession securing the site license for Hinkley point C and obtaining GDA clearance for the Areva EPR design. Meanwhile, by the middle of March, the Secretary of State will have determined on Hinkley’s planning application. So, assuming for the moment that the latter is positive, there will have been plenty of good news too.

That said it is clear that progress on the Energy Bill, and particularly agreement on the all important CfDs, is fundamental not just for nuclear new build but also for all low carbon energy sources. Nuclear, renewables and CCS plant all involve capital intensive long term plant requiring stable,

predictable returns over a significant period – and quite simply no low carbon generation of any kind will be built in the absence of long term CfDs to underpin the investment. The result would be evergreater dependence on gas.

This would be no small matter for the UK economy. Alistair Buchanan, Ofgem’s Chief Executive, recently warned that Britain faces a ‘horrendous’ supply crunch over the next three years as ageing power plants close and the country is forced to import gas at a time of tightening global supply. Britain will have to compete for its gas on a world-wide market, and shale gas reserves will not have a significant impact in the immediate future.

Of course the Government are well aware of this, which is why they came forward with the Energy Bill in the first place. The Labour Opposition, who in effect initiated the policy during the last administration, also understands this, with Caroline Flint MP (Labour’s Shadow Energy and Climate Change Secretary) stating in the debate that ‘For the future Britain must become less dependant on volatile fossil fuel prices and invest in home grown sources of clear energy’.

What has made the strike price negotiations so problematical is that electricity prices have roughly doubled in the past decade and are now a hot political issue.

Given the strike prices being considered for new nuclear and renewables generation are higher than the current wholesale price they will be difficult to sell to the public, and any perception that Government is favouring the investor over the hard pressed consumer will come at a high political cost.

However the key once again is to take the longer-term perspective. Government needs to explain that there has been no significant investment in electricity infrastructure for many years, and the

current wholesale price is based on plant built decades ago. All new plant, even gas, will cost more. However with much of our current generation capacity retiring and capacity margins narrowing doing nothing is not an option and as Alistair Buchanan neatly put it, ‘we have to face the likelihood that avoiding power shortages will also carry a price’.

Events overseas demonstrate the dangers of failing to grip this issue. To take just three examples, Japan’s monthly trade deficit hit a record in January, largely as a result of an increase in fuel imports (with LNG imports surging more than 28%). In Europe in Bulgaria a long running failure to maintain the country’s generating capacity has led to an energy crisis that brought down the Government.

And in Jordan, which the NIA recently visited, dependence on overseas energy supplies has led to major energy price rises – and pubic discontent – prompting the Government to pull out all the stops to create their own generating plant.

The public by and large are very realistic, and confronted with the realities will see the need for difficult decisions.

For this reason I am confident that the longer term perspective will see this difficult issue resolved, in the best interests of both the consumer and the new build investors. Time will tell whether I am right!

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

2013 | spring — 33

34 — spring | 2013