Amec Foster Wheeler Retains U.K. Nuclear Fleet Servicing Deal

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Amec Foster Wheeler PLC (NYSE:AMFW) (London, England) has secured a five-year extension to service the U.K.'s fleet of operational nuclear reactors.

The contract is worth roughly £125 million ($153 million) and was awarded by EDF Energy Nuclear Generation, the U.K. arm of French energy major Électricité de France SA (EPA:EDF) (Paris, France). Amec Foster Wheeler said that the deal has the potential to generate annual revenues of £25 million to £30 million ($31 million to $37 million).

The contract, known as Technical Support Alliance 3 (TSA3), will run alongside the existing framework contracts TSA1 and TSA2. EDF Energy owns and operates 15 reactors across eight nuclear power plants, which supply around 21% of the U.K.'s total power. However, most of those reactors will be retired by 2025.

The contract win comes just a week after Industrial Info reported on plans by rival engineering giant Wood Group plc (LSE:WG) (Aberdeen, Scotland) for a £2.2 billion ($2.7 billion) takeover of Amec Foster Wheeler. The all-share offer has been unanimously recommended by the boards of both companies. It will lead to the creation of one of the world's largest engineering groups servicing the power, oil, gas, mining and chemicals sectors. For additional information, see March 15, 2017, article - Wood Group Bids $2.7 Billion For Rival Amec Foster Wheeler.

"Amec Foster Wheeler has worked in partnership with EDF Energy for a number of years and shares our vision for zero harm, exceptional nuclear safety performance, and world record-breaking results," said Stuart Crooks, EDF Energy's managing director generation. "The support of all our strategic partners is an important factor as we continue to operate our nuclear stations to the highest standards, providing secure, low-carbon, affordable power for the U.K.."

Clive White, president of Amec Foster Wheeler's clean energy business, added: "Amec Foster Wheeler's deep technical knowledge and strong track record in project delivery are crucial to our continued support for EDF Energy's U.K. stations, which are producing more electricity than at any time since 2003."

Amec Foster Wheeler also is involved with the U.K. government's push to start a new era of nuclear plant construction.

Last August, the company was awarded a continuation of contract to provide environmental support for the largest proposed nuclear power station in the U.K. The Moorside nuclear project in Cumbria will have a generating capacity of up to 3.8 gigawatts (GW) and is being developed by NuGeneration Limited (NuGen) (West Cumbria, England), a joint venture company owned by Japan's Toshiba Corporation (TYO:6502) (Tokyo, Japan) (60%) and France's GDF Suez (OTC:GDSZF) (Paris) (40%). For additional information, see August 17, 2016, article--AMEC Foster Wheeler Lands New Contract for U.K.'s Biggest Nuclear Project.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.