Nuclear Fuel Manufacturing

Jim Shannon Excerpts

Tuesday 7th September 2021 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Fylde (Mark Menzies) for raising this important issue. We are all interested in this issue—that is why we are here—but it is also an issue that we cannot ignore, because of the importance of the subject matter. I have raised this topic on a number of occasions, and my position on it has been clear. I am pleased to see the Minister in her place, and I look forward to her response, as I always do. I should put on record that I have supported nuclear power all of my political life, in this Chamber, in the Assembly and formerly in the council as well.

My position has been solidified by the push, the correct push, for greener energy where possible, within the confines of the cost, which we cannot ignore either. I was reading in the press recently that, if you ask people whether they are in favour of green energy, the majority will answer, “Yes, we are.” When you tell them that supporting green energy may mean a 10% or 15% increase in their energy prices, all of a sudden what it means for people becomes much more real. It is important that we pursue green energy, but—it is a debate for another day, to be fair—we cannot ignore the implications of some of our decisions.

I recently read, in a briefing by EDF Energy, that nuclear is the only proven, reliable low-carbon electricity source and that it is vital to achieve our climate targets and create highly qualified jobs, mostly outside London, as part of the Government’s levelling-up agenda. I see some Members here who are very supportive—indeed, we are all supportive—of the levelling-up agenda, but we want to see what it will mean for our constituents. I would very much like to see Northern Ireland being part of the levelling-up agenda on this issue, as part of the United Kingdom of Great Britain and Northern Ireland—as I always say, Mr Betts, better together. I know that the hon. Member for Kilmarnock and Loudoun (Alan Brown) would wholly endorse that; I am surprised he has not said, “Hear, hear!” That is facetious, but he understands the circumstances. There are occasions when we can do better together, and this is one of them. We need to see similar investment and equality of spending across all of the regions of the United Kingdom, in Scotland, Wales and Northern Ireland as well. I wish to see that happen.

The only thing I would add to the motion is the word “safe”—we need to make sure that nuclear fuel manufacturing in the UK is safe. Safe nuclear is the only proven, reliable low-carbon energy source that we have. I have always made it clear that we can and should use nuclear energy, but only to the highest safety standards. That does cost money. There is a cost implication, as there always is. It means ongoing investment, which is why I was interested to learn that currently over 85% of the UK’s nuclear fuel is manufactured within the UK, predominantly by the existing advanced gas-cooled reactor power stations. Fuel fabrication will decline, with seven out of eight of the UK’s current nuclear fleet, responsible for around 20% of the UK’s zero-carbon electricity, currently scheduled to be offline by 2030.

I am sure we have all heard the selling points regarding the potential opportunity that Sizewell C in Suffolk presents to secure a future for UK nuclear fuel manufacturing, should that project be approved. It is right and proper that it is explored, and that we have all the information necessary to take it forward. The hon. Member for Preston (Sir Mark Hendrick) referred to China’s position. I cannot agree with him. I am not anti-China—it would be wrong to be so—but we need to know about China’s intentions. We need to know what they are about: if their investment could be used to our advantage as well as to their advantage, that is good, but not if it is solely to their advantage. It is our land and our country, and we need to have the last say on what happens. If protections are in place, we will want to see them before this project can be fully considered.

Hinkley Point C in Somerset has already supported around 71,000 jobs, so we cannot ignore the jobs that are created through these projects. It uses a supply chain of more than 3,600 businesses, and has an estimated economic value to the UK of £18 billion. Those jobs in small and medium businesses throughout the supply chain, and the economic value that this project has to the UK, cannot be ignored. That skilled workforce and supply chain need a clear future; they need to know what is happening as well. I want Northern Ireland to be part of that supply chain, so perhaps when the Minister sums up, she can give us some indication of how Northern Ireland can play its part in that. I would certainly like that to be part of the Government’s commitment; I do not doubt that it will be, but I just want to hear it for Hansard and on the record, please.

Together, Hinkley Point C and Sizewell C will produce enough zero-carbon electricity to power 12 million homes—again, that is incredibly important and cannot be ignored. EDF is building the UK’s first nuclear power station in a generation at Hinkley Point, and I am given to understand that the electricity generated by that plant will offset some 9 million tonnes of carbon emissions per year, or 600 million tonnes over its 60-year lifespan. Again, those figures cannot be ignored, and we should be encouraged by them.

The Energy Technologies Institute has identified the two key cost drivers of new nuclear power stations as construction and financing, and building this series is key to lowering both. Hopefully, we can address both of those drivers by having the series and plan in place; I believe the Government are committed to that strategy and that plan. I have been told that the cost of financing Sizewell C will be lower because of the reduction in risk through building the second project in the series, and because the funding model—the regulated asset base model—enables investors to receive a steady return on their investment during construction, meaning that they will be able to provide capital at a lower cost. I am a great believer in ensuring that investors have a return; I would respectfully suggest that we want to see a return for them, but not an exorbitant one. However, we have a responsibility to the taxpayer to ensure that investors can invest their money and get that return.

I look to Government, and in particular to the Minister, to provide a response setting out their vision—and her vision—of low-carbon energy, and how this can be achieved for all of the United Kingdom of Great Britain and Northern Ireland by using safe nuclear power, with a viable financing option in legislation and in operation. If we can do that, I believe we will all benefit.