More contracts awarded for Hinkley Point C

Friday, 31 July 2015

EDF Energy has today announced further preferred bidders for the project to construct the Hinkley Point C nuclear power plant in the UK. The combined value of the contracts is some £1.3 billion ($2.0 billion).

A computer-generated impression of how Hinkley Point C could appear (Image: EDF Energy)

EDF Energy said the selection of the preferred bidders had been made possible by work that it and suppliers had done "to create a supply chain ready to build the proposed nuclear power station in Somerset". The company said that local, national and international supply chain events held over the past six years "have helped UK businesses understand the requirements necessary to join the project which will restart new nuclear construction in Britain after a 20-year pause."

The majority of the latest contracts have been awarded to UK companies. Balfour Beatty Bailey - a joint venture between Balfour Beatty and NG Bailey - won the contract for electrical cabling and equipment installation. A contract for the construction of workers' campus accommodation was awarded to Laing O'Rourke, while construction of temporary buildings will be carried out by Premier Interlink WACO UK Ltd. Meanwhile, power transmission work has been awarded to ABB UK. Weir is to supply large pumps for cooling water and Clyde Union will provide the main pumps for the feedwater and cooling water systems.

EDF Energy said that UK companies have been encouraged to form joint ventures "in order to bring together experience and knowledge". A number of contracts have therefore been awarded to joint ventures between British and French companies. These include a contract for mechanical pipework and equipment installation awarded to Cavendish Boccard Nuclear, a joint venture between the UK's Cavendish Nuclear and France's Boccard. Another contract - for heating, ventilation and air conditioning - was awarded to ACTAN, a joint venture between Doosan Babcock of the UK and French companies Axima Concept and Tunzini Nucleaire.

A number of project management contracts have also been awarded to UK companies, including KBR, Jacobs, Gleeds, Faithful+Gould, Mace, and Turner and Townsend. Five joint ventures comprising local companies have also been selected to provide site services, transport and accommodation in contracts worth a total of £225 million ($350 million).

EDF Energy also noted that two UK companies - G4S and Aggregate Industries - are already providing security and highway construction services, respectively, to the project.

The company said the preferred bidders were selected through open and fair competition. However, it noted that any contract signings remain subject to a final investment decision to proceed with the project.

The estimated value for UK companies is put at more than 60% of the project cost, more than the initial estimate of 57%, EDF said. It noted that its major supply chain partners will find sub-contractors for manufacturing work, "potentially allowing many more firms to benefit from the project".

In October 2013, EDF Energy announced four main preferred bidders for engineering and construction. Areva will supply the reactor system, its fuel and control and instrumentation; Bouyges and Laing O'Rourke, will provide civil engineering; and Costain will build the cooling water intake tunnels. Alstom will provide two steam turbines.

EDF Energy CEO Vincent de Rivaz said, "Hinkley Point C will be at the forefront of the revitalization of the UK's industrial and skills base, and we have worked hard to build a robust supply chain to support new nuclear in the UK." He added, "The project will boost industrial stamina in the UK and kick-start the new nuclear program. Experience gained at Hinkley Point will help firms be successful in nuclear projects around the world."

Nuclear Industry Association CEO Keith Parker welcomed the announcement of the preferred bidders, saying: "This is another step forward for the UK's first nuclear power station in a generation and a timely boost for the UK supply chain. Today's contract announcements and EDF Energy's clear intention to secure as much UK involvement in the project will help secure more jobs and investment in the UK nuclear sector."

He added, "This is also a clear signal to the public, the supply chain and the government that EDF Energy and its partners remain committed to the Hinkley Point C project - which is vital for economic growth and energy security."

Two Areva EPR reactors are planned for Hinkley Point C. EDF Energy has yet to make a final investment decision on the project, but has invested significantly in preparatory activities at the site.

Researched and written
by World Nuclear News