EPR Nuclear Reactor Cleared by U.K.

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- The U.K. nuclear regulator has granted approval for the European Pressurised Reactor (EPR) to be used in future nuclear projects.

The reactor, designed by Areva S.A. (EPA:CEI) (Paris, France) and Electricite de France S.A. (EPA:EDF) (EDF) (Paris, France), and currently being installed at troubled projects elsewhere in Europe, is expected to form the basis for the U.K.'s first new nuclear build in 25 years.

The Office for Nuclear Regulation (ONR) and the Environment Agency said they are "satisfied" that the reactor meets regulatory expectations on safety, security and environmental impact.

Colin Patchett, acting chief inspector of nuclear installations, Office for Nuclear Regulation, said:"We are satisfied that this reactor is suitable for construction in the U.K.. It is a significant step and ensures that this reactor meets the high standards that we insist upon. We have been able to identify significant issues while the designs are on the drawing board. There remain site-specific issues that must be addressed before we'll approve its construction on any site. This new approach to regulation has proved to be a success. We have done what we set out to do and our assessment has been effective, ensuring the protection of people and society from the hazards of the nuclear industry."

The rigorous Generic Design Assessment (GDA) has taken almost over four years covering 17 technical areas, from civil engineering to reactor chemistry. EDF and Areva will be expected to pay the €43 million ($56 million) assessment bill.

"The acceptance of the design for the EPR reactor is a major achievement and milestone for our new nuclear project in Somerset," explained EDF Energy Chief Executive, Vincent de Rivaz. "It represents four years of hard work and allows our project have a stable design before we start, offering a huge boost for the predictability of costs. Working with Government to agree a Contract for Difference that offers a deal that is fair and balanced for both consumers and investors, our objective is to have all the main components in place in the next few weeks, so that we can take our Final Investment Decision for Hinkley Point at the earliest possible date."

Last month, the government granted the first new site licence for a nuclear plantproject to EDF's 3,300-megawatt (MW) Hinkley Point C project in Somerset. It will use two EPRs which when commissioned in 2018 will generate enough power for approximately 5 million homes. For additional information, see related news item from November 25, 2012 - U.K. Grants First Nuclear Licence in 25 Years.

However, the track record for the first two EPR projects in Europe is not good. EDF and Areva's Flamanville 3 plant in northern France is a 1,650 MW project that is four years overdue and has cost double its original €3.3 billion ($4.7 billion) budget. For additional information, see related news item from July 25, 2011 - French Nuclear Project Delayed Until 2016.

The other key EPR project is the troubled Olkiluoto 3 nuclear plant in Finland. This summer, plant owner, Teollisuuden Voima Oyj (TVO) announced that the already revised opening deadline of 2014 was no longer possible and declined to release a new date. It was the latest in a long series of delays and cost overruns and legal disputes between TVO and project partners Areva and Siemens AG (NYSE:SI) (Munich, Germany). For additional information, see related news item from July 24, 2012 - Delays Strike Finnish Nuclear Project.

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