Great British Nuclear

Debate between Virginia Crosbie and Dan Poulter

Wednesday 28th June 2023 Westminster Hall

[Virginia Crosbie]

I thank the hon. Member for his intervention and for his kind words. He is a true champion for his constituency and certainly for the nuclear sector. I absolutely agree with him. We have to invest in this new technology, and the time is now. It is important for net zero and for all those fantastic jobs. We cannot achieve net zero without it; we need that energy security.

Nuclear’s record in local communities speaks for itself: it provides high-quality, long-term and skilled jobs that pay wages two or three times what people get outside the power station. My community and many others around the UK that have had nuclear power know that it delivers good-quality jobs and local investment—and they say they want more of it. That, as hon. Members may guess, is my particular interest in today’s debate.

We have made great progress on nuclear in recent years, introducing the new regulated asset-based funding model, investing in Sizewell C and putting money into the Rolls-Royce reactor design. We also had the Chancellor’s welcome announcement that we will green-label nuclear, crowned by the formation of Great British Nuclear. We even have, for the very first time, our very own Nuclear Minister.

I can attest to the wave of energy and optimism that GBN’s formation has given to the industry. The Minister will know that technology vendors and developers from all over the world have entered the small modular reactor down-selection process that GBN is running at the moment. Many have come to visit Wylfa in my constituency of Ynys Môn to see the best site in the UK for further nuclear development. The likes of GE Hitachi, Rolls-Royce and Last Energy have all toured the island.

Today, I want to focus on how GBN can convert reactor technology, sites and strong political support from the Government into new projects in constituencies such as Ynys Môn. I hope the Minister is listening carefully. If I start with the small modular reactor down-selection, we should expand the prize of winning. At the moment, that prize is co-funding to help to develop the winning technologies up to the point of a final investment decision.

That is a good start, but we can go further. The winner should get access to named sites that are suitable for building small modular reactors; access to a funding model, such as the regulated asset base model or contracts for difference, to help to raise money; and help from GBN to form the actual project companies that will develop, own and operate the nuclear power stations once they are built.

The first SMR being built in the western world, at Darlington in Ontario, Canada, followed exactly that model. About five years ago, Ontario Power Generation ran a selection process, as we are now, and at the start it was clear that whoever won the selection would build an SMR at the Darlington site and that Ontario Power Generation would develop, own and operate the site. The winners had a site, an order, and a project developer and operator. That is the model that we should follow, because that is how we give investors enough confidence to put their money into such projects.

I am delighted that the Energy Bill gives GBN the power to form subsidiaries and joint ventures with the private sector to do exactly that type of individual project development, and I want to hear how the Minister’s Department will support GBN in doing just that. More than that, I want to hear whether the Minister has thought about awarding sites and offering funding modes to the winners to accelerate the process of deployment and quicken investor interest in the UK.

If the Minister needs sites to offer, I have one in mind: the best site for new nuclear in the UK, Wylfa. Our need for new nuclear means that we have to build more large-scale nuclear as well as small-scale nuclear. Large-scale nuclear, which is often unfairly maligned, has actually had a banner year. All three major western designs—the EPR, the AP1000 and the APR-1400—have connected reactors and entered commercial operation. Coincidentally, I think that the owners of those designs have all expressed an interest in a Wylfa site. Will the Minister say what further thought has been given to other large-scale projects after Sizewell C to capitalise on that interest, and also set out his thinking on the circumstances under which we will pursue more large-scale nuclear in this country?

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

I congratulate my hon. Friend on securing this debate on a very important issue, which will hopefully help to secure Britain’s future energy security. One of the challenges with Sizewell C, which I think will be reflected across the country, is EDF’s failure to properly engage with many communities in Suffolk about their legitimate but easily accommodated concerns about the construction of the plant. What could the Minister do to ensure better engagement for future nuclear plants?

[Virginia Crosbie]

My hon. Friend makes an excellent point. One of the reasons why nuclear sites are successful is support from the local community. That is absolutely vital, as we see with development consent orders for planning. We have seen that with Wylfa, and we have certainly seen it with Hinkley. It is vital that companies engage with local residents.

The Minister will know that Hinkley Point C provides nearly 10,000 jobs on site and supports over 3,000 jobs throughout the construction period, with companies based in Wales, and that £815 million is expected to be spent throughout the Welsh supply chain during construction. There are 22,000 people working across the country, and more than £5 billion spent across the region. What a prize a large-scale project is for a local community. I ask that large-scale developments and SMRs be pursued with equal vigour.

I know, of course, that there is the issue of money. I am convinced that the private sector is willing and able to invest in nuclear if it knows that the UK Government are standing right behind it and the nuclear projects. The planning, regulation, site access and funding models on offer are all within the Minister’s gift, or the Government’s gift. I am sure that the Minister will understand why investors are keen to see Ministers stand by projects, as they have with Sizewell C. That is my request to the Minister: that GBN is able to offer the Sizewell C model —regulated asset base funding, a Government support package and a 20% direct Government stake in the project —to the next two projects that the Government target to get to FID, the final investment decision, in the next Parliament and to all future projects. That would certainly be a godsend to investors and give communities such as mine real hope that new projects will get off the ground.

I will end on this note. On the island, we have been talking actively about new nuclear at Wylfa for 15 years or more. It has not happened, and it has been difficult for the local community to deal with that disappointment and still put their confidence in nuclear as a way to create opportunities for young people on the island. But they still put their confidence in nuclear. They still want the projects, investment and jobs. They look to me, the Minister and his colleagues to get it done. I simply ask him to return the faith that they have put in us, and to help us to get new nuclear at Wylfa over the line. Diolch yn fawr.