EDF readies more Hinkley Point C suppliers for contract signings

EDF Energy is today announcing two further preferred bidder contracts worth over £100m as it prepares to make a final investment decision for the Hinkley Point C nuclear power station.

The two contracts will help sustain jobs in the UK and provide a boost to the UK’s manufacturing sector.

Rolls-Royce, the integrated power systems company, is set to supply heat exchangers to be used at Hinkley Point C in a contract worth over £25m. Additionally, a Rolls Royce/Nuvia partnership has been selected as the preferred bidder for a contract valued over £75m to design, procure, install and commission two systems for the treatment and waste processing of reactor coolant at Hinkley Point C.

This good news for UK manufacturing follows on from the announcement in July of more preferred bidders to the Hinkley Point C project in contracts worth a total of more than £1.5billion.

In October 2013 EDF Energy announced the four main preferred bidders for engineering and construction:

• Bouygues TP, Paris, France/Laing O’Rourke, Dartford - civil work contract

• Costain, Maidenhead - marine work

• Alstom, Paris, France – turbine generators

• Areva, Paris, France - Instrumentation and Control, Nuclear Steam Supply System and Fuel

It is now estimated that contracts worth more than 60% of the construction cost for Hinkley Point C will be placed with UK firms, against an initial estimate of 57%.

EDF Energy and suppliers have been working together to create a supply chain ready to build the proposed power station, which will restart new nuclear construction in Britain after a 20 year pause. Any contract signings are subject to a final investment decision.

The proposed power station will provide reliable, low carbon electricity to meet 7% of UK demand. It will provide 25,000 employment opportunities on-site during its construction, including 1,000 apprenticeships.

EDF Energy CEO, Vincent de Rivaz said: “Hinkley Point C offers the UK a tremendous opportunity to boost employment and skills in the crucial manufacturing and construction sectors, as well as leading the revitalisation of the new nuclear programme.

“Together with suppliers and our partners we have created a supply chain ready to build Hinkley Point C, which will help the UK meet its future need for reliable low carbon electricity.”

Jonathan Brown, President, New Build and Nuclear Projects, Rolls-Royce said: “We are delighted to be selected by EDF Energy for these important contracts. Rolls-Royce is committed to delivering a high value added design, manufacturing and systems capability for the UK New Build programme.”

Today’s announcement follows news of a government guarantee of £2 billion for Hinkley Point C which marks further progress towards a final investment decision on a project which will provide reliable, affordable low carbon electricity for decades. The Chancellor’s approval of the infrastructure guarantee is a clear sign of the government’s commitment to Hinkley Point C and demonstrates the government’s determination to bring about a renewal of infrastructure and to attract inward investment to the UK.

All parties are working so that a final investment decision can be taken at Hinkley Point C as soon as possible.