Nuclear Fuel Manufacturing

Debate between Alan Brown and Mark Hendrick

Tuesday 7th September 2021 Westminster Hall

[Alan Brown]

I have to admit that there is not absolute certainty, but it is predicted that the first key carbon capture and storage plant could be up and running before another nuclear power station will be constructed. We are getting very close to the final investment decisions on these carbon capture and storage plants. That in itself will give the market an indication of where that is going. We will be looking at the next year or two for the final investment decisions.

Turning to the recent history of the nuclear sector in the UK, it is obvious there has been a market failure as well as a failure of Government strategy. Clearly, that has impacted Springfields in the demand for nuclear fuel. Hinkley point C is the most expensive nuclear project in the world. When the right hon. Member for Maidenhead (Mrs May) became Prime Minister, she threatened a U-turn on this project, but then caved in and signed the deal anyway. The cost for Hinkley is now estimated at £22.5 billion, which is an increase of 25% on the estimated cost when the deal was signed. The Government tell us that cost increases are tied up in the risk and that EDF carries that burden. The reality is that no company can afford losses of £4.5 billion or 25% of the original cost estimates, so electricity bill payers must be paying for it somewhere along the line.

The sign-off for Hinkley was supposed to send signals to the market to allow other sites to be developed to generate competition and bring down prices. Since then, we know that Toshiba has walked away from developing Moorside and Hitachi pulled out of Wylfa and Oldbury. The good news for us electricity bill payers is that £50 billion to £60 billion of expenditure has not been committed. From a UK Government perspective, that should have been the realisation that their nuclear aspirations were in tatters. Unfortunately for Springfields, that is three pipeline projects that they could have accessed now lost. Worse, Hinkley point C is now predicted to come online in June 2026 instead of 2025, but it is a possible 15 months away on top of that, so it could be September 2027 before unit 1 of Hinkley comes online. We will have to bear in the mind that the European Pressurised Water Reactors system has still not been shown to be successful. Flamanville in France is expected to generate in 2024—12 years late. Finland’s project is due to come on to the grid next year, but that is 13 years late.

[Sir Mark Hendrick]

Will the hon. Gentleman give way?

[Alan Brown]

I have to watch my time, I apologise. I can come back maybe. Taishan in China was held up as an exemplar when it went online, but it has now been taken offline because of safety concerns. If China General Nuclear Power Corporation is involved at Hinkley and the consortium for Sizewell, the fact that Taishan has got safety concerns should be ringing alarm bells for the Government. We talk about energy security, but the reality is that we have a reliance on France’s state-owned company EDF and on China’s state-owned company China General Nuclear Power Corporation. That kind of blows our energy security argument. I have not heard any answers alternative to that in here.

[Sir Mark Hendrick]

Will the hon. Gentleman give way?

[Alan Brown]

Very briefly.

[Sir Mark Hendrick]

I thank the hon. Gentleman for giving way. He consistently mentions France. President Macron recently said that by generating more than 41% of the energy in France, “nuclear makes us autonomous”. Macron also said,

“It preserves French purchasing power, with a kilowatt-hour 40% cheaper than our European neighbours.”