Friday 30 March 2012

A New Horizon for the UK’s Nuclear Future

There has been some very significant developments for the Nuclear Industry in the UK, with E.ON and RWE (nPower) [Horizon Nuclear Power] pulling out of the UK Nuclear New Build Programme, and on Monday the largest decommissioning contract ever will being awarded to the Babcock Dounreay Partnership to decommission Dounreay, by the far the biggest blemish of the nuclear industry.
Now in regards to the decision by EDF and RWE, if you believe the Energy Minister, Charles Hardy, this move was not down to a lack of confidence in the UK Nuclear Industry but due to, “pressures elsewhere in their businesses”, though it may have more to do with the lack of confidence in Nuclear as a whole following the Fukushima disaster in 2011. Whatever the reason for this decision, the fact is that this leaves the Nuclear New Build Programme in a severely weakened position and presents a stark truth that the UK cannot rely on private and foreign investment for our core infrastructure.
The big players that are left, and that the government is relying on to plug the energy gap, are EDF/Centrica (or British Gas) and Nugen, with EDF/Centrica being by far the most serious players. However with cost of a new nuclear plant rising, partly after increased safety precautions have been implemented following on from the Fukushima disaster, and the slow progress and higher than expected cost of EDF’s flagship nuclear reactor, the European Pressurised Reactor, in Flamanville, the continued support by these big players should be viewed with extreme caution.
The governments existing policy of no subsidies for nuclear power will have to come under review in the not too distant future, else the risk of the new nuclear sector collapsing is very real. Now I don’t agree with subsidies for nuclear power, as I believe it has already cost the country enough over decades of poor management leading to heavy decommission costs and that we should focus on more sustainable power. But we have already invested heavily in proving New Nuclear Build Designs and paving the way for their installations so to abandon now would leave the country out of pocket and with a serious and fast approaching energy gap.
Finally I will briefly consider the blemish that is Dounreay and the ever protracted decommissioning process, which at last count was estimated to finish in 2032. Dounreay was, in my opinion, the most poorly managed nuclear facility that the country has ever ran and more a experimental play house for the development of nuclear power and fuel than ever a well run facility. There have been stories of rooms that were out of bounds for decades due to radiation, which have only recently been decommissioned, and nuclear waste leakage into the waterways. The decommissioning process is incredibly complicated and to trust that it will be more cost effective to hand this over to a private firm is incredible at the least.
I have no worries on the ability of Babcock to perform the decommission and I am sure that the people involved will not actually change much due to the limited suitably qualified resource that this country has; though to presume that this will reduce costs is in my opinion a foolish one. It should also be noted that Babcock has an ever expanding portfolio of highly sensitive and very significant operations in this country. Private companies exist for one purpose, to make money, which any sensible person cannot disagree with; however to put them in charge of public infrastructure and services and expect them to act altruistically is incredibly naive.