UpdateIndustry welcomes UK nuclear decision

10 January 2008 13:34  [Source: ICIS news]

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LONDON (ICIS news)--Britain’s biggest energy users, among them the country’s major chemicals makers, welcomed the government’s decision on Thursday approving the construction of a new generation of nuclear power stations.

The UK’s energy-intensive users group (EIUG), which represents heavy power consumers, said the decision would help improve industrial competitivness and was long overdue.

“Nuclear power is an essential component of industrial baseload energy supply,” said group director Jeremy Nicholson.

“It is one of the few sources of competitive large-scale, low-carbon power,” he added.

John Hutton, Britain’s secretary of state for the Department of Business, Enterprise and Regulatory Reform (BERR), announced the government’s decision on energy and nuclear power in parliament.

"The government believes that new nuclear power stations should have a role to play in this country's future energy," he said.

Nuclear power has been broadly backed by industry and intensive energy users, including chemical and industrial gases suppliers.

The competitiveness of the UK’s energy supply mix is vitally important for UK chemicals, Nicholson said, particularly as moves are made to “de-carbonise” the sector.

Maintaining a broad mix of generating sources is key to ensuring secure and competitive energy supplies in future, said Nick Sturgeon, head of climate change and energy at the UK's Chemical Industry Association (CIA).

The uncertainty in this winter’s gas markets exemplified the need for a broad energy mix and a move away from a dependence on gas imports, he added. 

“Energy prices at vastly higher rates than other countries and a lack of confidence that the market can meet demand seriously impacts on the chemical industry’s competitiveness, sustainability and investment prospects,” Sturgeon said.

“It is therefore important that the government follows-through on today’s decision by implementing measures put forward in the Planning Bill to ensure there are no further delays to the regulatory clearance of new nuclear power stations.”

Hutton invited energy companies to bring forward plans to build and operate new nuclear power stations. 

“With a third of our generating capacity coming offline within the next 20 years and increasing reliance on imported energy, it is clear we need investment in a range of new energy infrastructure,” he said.

Upcoming measures introduced by government will drive a greater deployment of renewable and enable investment in carbon capture and storage and offshore gas infrastructure.

“These will help build our energy security, reduce emissions and place the UK at the forefront in the development of low carbon energy technology,” he added.

The government said it will be for energy companies to fund, develop and build new nuclear power stations in the UK, including meeting the full costs of decommissioning and their full share of waste management costs.  

It published proposed energy legislation on Thursday and later this year will publish guidance on nuclear plant financing.

It intends to speed up the planning process by treating nuclear installations projects like key national infrastructure schemes.

By: Nigel Davis
+44 20 8652 3214

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