UK government delays Hinkley Point C

THE UK government has unexpectedly delayed a final decision on Hinkley Point C, the UK’s first nuclear power station in two decades.                        

The board of EDF, which is planning to build the £18bn (US$26bn) power station, made the long-awaited final investment decision to build two reactors at Hinkley Point C yesterday afternoon. This meant that all the conditions have been met for EDF to sign contracts with its partner China General Nuclear Power Generation (CGN), and the UK government. The contracts were expected to be signed today. The news of the government’s delay came as something of a shock to the industry, which just hours earlier had been celebrating EDF’s final investment decision.

The UK business and energy secretary Greg Clark said in a statement to the media: “The UK needs a reliable and secure energy supply and the government believes that nuclear energy is an important part of the mix. The government will now consider carefully all the component parts of this project and make its decision in the early autumn.”

The government made no further comment on the delay. However, there has been major political upheaval in the UK in recent weeks and the new prime minister Theresa May wants time to fully consider all of the aspects and implications of a new nuclear power station. She believes that a final decision should not be taken until a review has been completed.

An EDF spokeswoman told The Chemical Engineer that the company was surprised by the government’s decision but is still committed to building Hinkley Point C and that the schedule for building the plant will not be affected. EDF’s final investment decision was initially expected to be taken in September.

Hinkley Point C will create over 25,000 jobs and its two Areva pressurised water reactors will have a generating capacity of 3.2 GW, around 7% of the UK’s annual electricity needs. It is expected to contribute £100m to the regional economy.

IChemE said that the delay will bring further chaos and confusion to UK energy policy, with recent decisions ending support for wind and solar power projects, the continued loss of coal-fired generating capacity and the cancellation of the £1bn CCS competition. The uncertainty caused by the latest delay could threaten other planned new nuclear projects, such as those near Oldbury, Wylfa and Sellafield. IChemE communications director Andy Furlong said that the engineering community is in “a state of paralysis”

“We cannot make proper decisions around design, procurement and construction timelines. Neither can we get to work on the education, training and skills issues that will need to be resolved to support a complex supply chain that has the potential to create more than 25,000 jobs, including many roles for chemical and process engineers,” he said, adding: “Continued prevarication undermines confidence and reinforces the current unpredictability in British politics. Brexit, the upheaval in both government and opposition, and deep concerns about the state of the economy look to be destabilising the situation.  This is a long-term infrastructure project that will span several parliaments. But if things carry on like this we’ll be reaching for candles.”

IChemE Energy Centre chair Stefaan Simons said that the delay was “extremely regrettable”.

”Nuclear energy can make a valuable contribution to the decarbonisation of electricity generation in the UK; but it needs a big, bold decision to make it happen. The government has baulked at the eleventh hour,” he said.

Tom Greatrex, chief executive of UK industry body the Nuclear Industry Association (NIA), said that the decision does not change the fundamental that two thirds of the UK’s energy generating capacity will have been retired by 2030.

“The most important thing is that the board of EDF and its investors have the finance in place to enable them to give the go ahead for the project and that is very good news. We have a strong UK supply chain which has built up its capability and has trained people so they are able to build and operate Hinkley Point C. We now need the new ministers to quickly endorse the decision to show they are serious about industrial strategy, building new infrastructure by securing inward investment to create our low carbon energy supplies of the future,” he said.

Unions have greeted the decision with dismay. The GMB national secretary for energy, Justin Bowden, said that the government’s decision is “bewildering and bonkers”, and a “gross error of judgement and must be reversed.”

The general secretary of the TUC, Frances O’Grady, slammed the government’s “dithering” over a major infrastructure project.

“This is not the right signal to send to investors after the Brexit vote. Our economy needs certainty, not vacillation. Of course we must ensure that any project on this scale gives good value for the taxpayer, but successive Conservative-led governments have had years to get this decision right. Ministers must urgently consult with everyone involved in this project, including unions, with the aim of giving Hinkley C the green light as soon as possible,” she said.