UK-France nuke deal

20 February 2012


The UK and France have signed a deal to strengthen their co-operation in the development of civil nuclear energy. The UK coalition government has reiterated its commitment to nuclear energy ‘as part of a diversified energy mix’. The two governments will work together with the International Atomic Energy Agency (IAEA) "to strengthen international capability to react to nuclear emergencies and establish a joint framework for co-operation and exchanging good practice on civil nuclear security". This emphasis on safety is a response to public concerns following the tsunami 11 months ago that wrecked the Fukushima Daiichi nuclear plant, leaking radioactive material into the air and the sea.

The coalition said the agreement, which was signed at a summit between UK prime minister David Cameron and France’s president Nicolas Sarkozy in Paris, would create a number of commercial contracts in the field, worth more than £500m and creating 1500 UK jobs.

"This joint declaration will signal our shared commitment to the future of civil nuclear power, setting out a shared long term vision of safe, secure, sustainable and affordable energy, that supports growth and helps to deliver our emission reductions targets," said the prime minister in a statement. UK and French public and private sector bodies in the civil nuclear power industry will also work more closely in a number of areas. These include education and training, research and development, and security.

Frost & Sullivan analysts commented that the ‘potential synergies’ were very significant. "Phasing out nuclear power was never an option for countries like the UK and France. While Germany increased the speed of its nuclear phase out following the Fukushima incident in Japan, countries like the UK and France both have large mutual interests in the nuclear sector. The potential synergies between the two countries are very significant given the supply chain expertise across the two countries in forgings, critical and peripheral equipment and engineering expertise” said a spokesman.

The agreement paves the ways for EDF and other utilities to secure funding, and supply chain agreements for the eight sites across the UK earmarked for new nuclear capacity. France, already building its European Pressurised Reactor (EPR) at Flammanville, also has another EPR in the pipeline at Penly. Overall however, say F&S, the nuclear share in France is expected to decline slightly from 75% in 2012 to 72% in 2030. In the UK, the share of nuclear power is set to increase from the current 16% in 2012 to over 20% in 2030. The exact share will depend on the number of yet undisclosed projects which will be approved by the Health & Safety Executive.

Not every reaction to the news was unqualified approval. Dr Tim Fox, head of energy at the UK’s Institution of Mechanical Engineers said: “Although it is welcome news that the UK is pressing ahead with the development of new nuclear reactors to secure affordable low-carbon electricity generation, this is not necessarily the best deal for securing UK jobs and skills.

“Although some relatively small contracts are to be awarded to Rolls Royce and BAM Kier, it looks increasingly likely that the vast majority of the contracts involved in the manufacture and construction of the new nuclear reactors at Hinkley Point and Sizewell will go to France rather than the UK. An outcome the Institution predicted in it Nuclear New Build report two years ago.  

“The construction of the nuclear power stations at Hinkley Point and Sizewell will directly and indirectly create about 10 000 jobs. The UK has the ability to undertake about 70% of the engineering and construction work of a new nuclear power plant. We must ensure that we do not miss out on an opportunity to develop UK industry, skills and jobs with the roll-out of the country’s new nuclear power stations.”




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