Delays Threaten U.K.'s First New Nuclear Project

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- The U.K.'s first new nuclear build project looks set to be delayed as a key contract for civil engineering work has been put on hold.

EDF Energy, the U.K. arm of French energy major Electricite de France (EPA:EDF) (Paris), was expected to announce the winner of a key £1.2 billion ($1.85 billion) civil engineering contract to build the Hinkley Point C plant in Somerset, England, in recent weeks but it now looks like the decision could be delayed until next year. Consortia headed by Balfour Beatty plc (LSE:BBY) (London) and Laing O'Rourke (Dartford, England) were expected to find out the fate of their bids last month but one partner has said that it could now be 2013.

"I think EDF is totally committed to Hinkley Point subject to them having a clear investment case, but I don't think it is in a position to make a decision until [the contracts are] legally brought into force, so some time next year will be the earliest they will commit," stated John Stanion, chief executive and chairman of construction firm Vinci, one of the partners in the Balfour Beatty consortium, speaking to Construction News.

EDF Energy has not commented on the contract delay but reaffirmed its commitment to the project by claiming that an announcement to take forward the contract process "would be made soon".

EDF has until the end of this year to make its final decision regarding investment in Hinkley Point C but delays will throw off its planned commissioning date of 2018. EDF has been active in getting the site ready over the last nine months and preparation work is already underway. Last December, Kier Group (KIE.LN) (Bedfordshire, England) and Bam Nuttall, a subsidiary of The Royal BAM Group (BAMNB:EN) (Bunnik, Netherlands), were selected by EDF as the preferred joint venture bidders for site preparation works worth £100 million ($155 million). For additional information see December 15, 2011, article - Hinkley Point C Nuclear Power Plant's £100 Million Site Preparation Contract Awarded to Kier Bam.

In March, EDF Energy postponed one of its planned new nuclear power plants in the U.K.. It announced that it will no longer pursue an arrangement with the National Grid to establish a new connection to the grid from its Heysham site in Lancashire, England, ruling Heysham out as a potential candidate for a new plant. . For additional information see March 20, 2012, article - EDF Drops One of its UK Nuclear Projects.

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