Cavendish Fluor to Decommission 12 U.K. Nuclear Sites

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The decommissioning of 12 of the U.K.'s oldest nuclear sites has been handed over to a partnership of Babcock International Group plc (LSE:BAB) (London, England) and project management firm Fluor Corporation (NYSE:FLR) (Irving, Texas), in a deal that the government claims will save €1.87 billion ($2.42 billion).

The contract was awarded by the U.K. Nuclear Decommissioning Authority (NDA) to the Cavendish Fluor Partnership (CFP), which will take over the decommissioning of 10 of the country's first nuclear power stations and two pioneering research facilities. The partnership takes over from Magnox Ltd and Research Sites Restoration Ltd (RSRL), both of which will now become part of CFP. The contract, which will run over the next 14 years, is worth an estimated €5.24 billion ($6.8 billion).

The NDA said it has set out "a clearly defined program of work and challenging financial targets, in line with the tender submission, that will deliver real value for taxpayers".

"These sites led the world in developing nuclear energy for the citizens of the U.K.," explained Baroness Verma, Parliamentary Under Secretary of State for the Department of Energy & Climate Change (DECC), at the hand-over. "Today marks an important milestone in the long term environmental restoration program for the first generation of nuclear sites in the U.K."

NDA Chief Executive John Clarke added: "Today is a significant achievement for the NDA. By introducing a fundamentally different contract, based upon a clear understanding of the scope of work to be delivered across 12 sites over 14 years, we have been able to generate real competitive tension during the competition process. We are delighted that our approach looks set to deliver a reduction in decommissioning costs of more than £1.5 billion."

Magnox Ltd. operates the following 10 reactor sites: Berkeley, Bradwell, Chapelcross, Dungeness, Hunterston A, Hinkley Point A, Oldbury, Sizewell A, Trawsfynydd and Wylfa. Of the 10 nuclear sites, Wylfa is the only one still generating power, but that is due to shut later this year. Research Sites Restoration Ltd. operates the Harwell and Winfrith research facilities.

Kevin Thomas, CFP chairman, commented: "We are looking forward to working closely with the NDA and the sites to deliver this extensive decommissioning program, safely, on schedule and within budget. By combining our breadth of experience and utilizing both proven and innovative solutions, we will deliver significant savings to the UK taxpayer."

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