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Hinkley Point C UPDATE

EDF have handed a £99m construction deal which includes design, supply and installation of transmission facilities to Swiss-based firm ABB. The overall project is expected to cost a total of £18bn.

ABB will be responsible for the construction of the substations that will feed 3,200 MW of power to the grid, the installation of six Megavolt transformers, and transmission feeds to transfer power from the plant to the grid.

The deal takes the value of Hinkley contracts let by client EDF so far to £9bn.

Major deals to date include the £2bn civils contract for BYLOR, a joint venture between Bouygues TP and Laing O’Rourke, and the £208m earthworks deal won by a Kier and Bam Nuttall joint venture.

First concrete at the plant was poured in March this year as part of the construction of 7 km of gallery tunnels that carry the plant’s cables and pipes.

However, last week it was revealed that parts of these tunnels had to be demolished and replaced after issues were found with the concrete that had been laid.

Commenting on the infrastructure deal, Hinkley Point C managing director Stuart Crooks said “This major contract marks another significant step forward for the project.

“Hinkley Point C is bringing together companies and expertise from the UK, France and the world. Construction is fully under way and we remain firmly focused on what we need to deliver in the year ahead and beyond.”

From the beginning, Hinkley has been marred in controversy. According to leading protest group Stop Hinkley discharges from the proposed Hinkley Point C nuclear Power station could cause around 200 deaths across the globe over its 60-year lifetime.

The radioactivity of spent fuel from Hinkley Point C would amount to around 80% of the radioactivity of waste already produced in the UK.

Also, with the delivery cost being so high, questions have been raised regarding the true value of Hinkley for Britain. Studies suggest that energy efficient improvements could reduce the energy consumed in UK households each year the equivalent to the output of six nuclear power stations the size of Hinkley Point C.

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Construction workers threaten strike at Hinkley Point as pay offer rejected

Construction workers employed at Hinkley Point have overwhelmingly rejected a pay offer in the longstanding dispute over pay and bonuses on the project.

The unions concerned, Unite and the GMB, will now go ahead with notifying the companies concerned of their intention of holding an industrial action ballot and then progress to ballot members for strike action.

The workers overwhelmingly rejected the proposed pay increase, with over 95 per cent voting against the proposals in a consultative ballot. Members were told that the rejected offer was the best that could be achieved “through negotiations”.

The dispute, which has been ongoing since the spring, concerns the pay of workers engaged on civil engineering contracts at Hinkley Point which is the largest construction project in Europe. There are already over a 1,000 workers employed on these contracts at Hinkley Point.

Negotiations on the pay offer have involved the client EDF and the main contractor BYLOR (the principal contractor Laing O’Rourke and Bouygues TP) as well as the unions.

A ballot for strike action was called off in June after an interim agreement on bonus payments was agreed. The three month agreement was extended into September in the hope that a permanent deal could be made.

One of the principal issues is that the pay rates for workers on civil engineering contracts are significantly below the rates of workers covered by the mechanical and engineering (M&E) contract.

Unite national officer for construction Jerry Swain said “Members have made their views clear; the unions warned the amount of money being offered was not sufficient and this has proved to be the case.

“The client and contractors need to understand that this is a high profile, complex project, built in a tightly controlled secure zone, which is being built in an isolated part of the UK. It cannot and will not be built on the cheap.

“For too long the construction industry has treated workers on civil engineering projects as the poor relations and these attitudes are no longer acceptable. The employers have set the benchmark with the mechanical and engineering agreement they need to come forward with an offer that meets our members’ expectations.

“There is a window between now and the commencement of any industrial action to still resolve this dispute, provided the client and the contractors come back with an improved offer. The unions are fully prepared to return to the negotiating table if an improved offer is put forward.”

Phil Whitehurst, GMB national officer for construction, said “The ballot result is a clear indication that the national officers of both GMB and Unite have to get back round the table with EDF as matter of urgency.

“We will be seeking meetings with EDF as soon as possible to solve this situation on behalf of our members.”

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Government gives final confirmation on Hinkley Point C

Following a comprehensive review of the Hinkley Point C project, and a revised agreement with EDF, the Government has decided to proceed with the first new nuclear power station for a generation.

However, ministers will impose a new legal framework for future foreign investment in Britain’s critical infrastructure, which will include nuclear energy and apply after Hinkley.

The agreement in principle with EDF means that the Government will be able to prevent the sale of EDF’s controlling stake prior to the completion of construction, without the prior notification and agreement of ministers. This agreement will be confirmed in an exchange of letters between the Government and EDF. Existing legal powers, and the new legal framework, will mean that the Government is able to intervene in the sale of EDF’s stake once Hinkley is operational.

According to the government website, Hinkley Point C will provide seven per cent of Britain’s electricity needs for sixty years. UK-based businesses will benefit from more than 60% of the £18 billion value of the project, and 26,000 jobs and apprenticeships will be created.

Greg Clark, Secretary of State for Business, Energy and Industrial Strategy, said “Having thoroughly reviewed the proposal for Hinkley Point C, we will introduce a series of measures to enhance security and will ensure Hinkley cannot change hands without the Government’s agreement. Consequently, we have decided to proceed with the first new nuclear power station for a generation.”

A project with little support

This news will undoubtedly come as a shock to the many people in support of the Stop Hinkley campaign, who announced yesterday that they would be joining Greenpeace at 11am on Thursday 15th September to hand in a petition containing over 300,000 names at No.10 Downing Street (at 100,000 signatures a petition can be debated in Parliament).

A recent public opinion poll commissioned by Greenpeace which showed that support amongst the general public for Hinkley Point C has fallen to a new low of only 25%, whilst nearly half (44%) oppose it.

Stop Hinkley spokesperson Sue Aubrey said: “Virtually all major national newspapers and commentators have been calling for Hinkley to be cancelled for months. This petition and recent opinion polls show that the public agrees with them and supports Stop Hinkley’s view that there is no widespread support for new nuclear, particularly at Hinkley Point. Consumers can tell that the project may be unconstructable, requires vast subsidies and would generate electricity too expensive to use.”

One argument for the building of Hinkley is job generation within the county of Somerset. However, calculations suggest that the 900 direct permanent jobs which could be created at Hinkley Point C would cost electricity consumers an extra £800,000 per job per year compared to jobs in renewables in terms of increased costs of electricity. Renewable energy is a far better job-creator than nuclear, and already employs three times more people, according to Dr Ian Fairlie writing on The Ecologist website.

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Hinkley: Plans to scale back nuclear cooperation with Chinese government emerge

A new plan regarding the future of Hinkley Point C is currently being considered following last month’s delay by Theresa May in approving the £18bn Hinkley Point project.

The government is currently considering a proposal to detach development of Hinkley Point C nuclear reactor from a previous agreement, whereby China is responsible for the delivery of the Essex-based power plant.

China became controversially involved in the project 12 months ago, offering to fund a third of the costs in a deal meant to ease financial pressure on French Energy firm EDF.

However, concerns were raised by Theresa May, who soon called for a project review shortly after becoming Prime Minister.

Putting the project in jeopardy

Experts suggest that any attempts to detract from the agreement whereby China build reactors in Britain risks endangering the whole deal; the primary reason for China’s involvement from their perspective was in order to showcase their nuclear technology in Europe. Otherwise, they would have little interest in being involved in such a project.

This news comes as another knock to overall confidence in the future of Hinkley Point C. Serious doubts plague the proposals regarding the financial and environmental cost of the project – it seems to be losing what little support it had in the first place. Last month, Stop Hinkley Spokesperson Allan Jeffery commented “Now even the financial press says Hinkley Point C has become a laughing stock.

“The cost keeps rising while the cost of renewables is falling rapidly, and the potential to make savings with energy efficiency is huge. We could replace Hinkley much more quickly and cheaply without the safety fears and without producing dangerous waste we don’t know what to do with.”

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Hinkley Point C delayed – meanwhile renewable energy outperforms coal in new statistics

Controversial plans to construct a nuclear power plant in the UK have been delayed following the government postponing any final decision until early autumn. Meanwhile, new official UK electricity statistics indicate that renewable technology is currently outperforming coal in terms of energy generation.

Prior to today’s announcement that the project would be delayed, French firm EDF were financing the majority of the £18bn Hinkley Point C project in Somerset, and final contracts were due to be signed this week.

However, Business Secretary Greg Clark has now said that the government will have to “consider carefully” before backing the original plans.

The project has raised serious concern over both environmental impact and ever-rising costs, which make it a costly carbuncle rather than a real asset to Britain. There are also questions being raised about the fact that the plant is being built by foreign governments. For example, around 30% of the £18bn cost is currently being provided by Chinese investors.

Stop Hinkley Spokesperson Allan Jeffery commented “Now even the financial press says Hinkley Point C has become a laughing stock.

“The cost keeps rising while the cost of renewables is falling rapidly, and the potential to make savings with energy efficiency is huge. We could replace Hinkley much more quickly and cheaply without the safety fears and without producing dangerous waste we don’t know what to do with.”

Renewables

In other energy news, the Government’s new annual energy statistics show that renewable energy sources are replacing coal as mainstream technologies generating power for British homes, offices and factories.

Renewables-BS-article

Today’s figures confirm that 25% of the UK’s electricity was generated from renewables last year – an increase of 29% on 2014. Nearly half of this (48%) came from wind power alone. 1 in 8 units of electricity generated in the UK came from wind.

In comparison, coal generated 22% of the country’s electricity – down from 30% in 2014.

RenewableUK’s Deputy Chief Executive Maf Smith said “The Government took the right decision when it announced the phasing out of coal. Now we can see renewable energy filling the gap, replacing old technology with new. 2015 was the first year that renewables outperformed coal.

“A quarter of Britain’s power is now coming from wind, wave and tidal power and other renewable energy sources. Renewables are now part of our energy mainstream, helping us modernise the way we keep the lights on by building new infrastructure for the generations to come.”

The contribution of offshore wind grew by 30% in 2015, while onshore wind grew by 23%. The Department for Business, Energy and Industrial Strategy, which published the figures, said this was due to increases in capacity, load factors and higher wind speeds.

The Government’s latest poll on the public’s views on energy, the Public Attitudes Tracking Survey, was also published today. It showed that 76% of people support renewable energy. 70% of people also said renewable projects provide economic benefits to the UK.

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