EDF Energy readies Hinkley Point C suppliers for contract signings subject to a final investment decision
- More preferred bidders announced for Hinkley Point C
- Estimated value for UK companies at 60%
- Work to build the project supply chain brings benefits to UK
EDF Energy’s work to ready the Hinkley Point C project for a final investment decision has taken a further step forward with the announcement of more preferred bidders. This has been made possible by work from EDF Energy and suppliers to create a supply chain ready to build the proposed nuclear power station in Somerset. Any contract signings are subject to a final investment decision.
National, local and international supply chain events over the last six years have helped UK businesses understand the requirements necessary to join the project which will restart new nuclear construction in Britain after a 20 year pause.
This has resulted in the creation of joint ventures which could lead to further opportunities for participation in successive nuclear projects in the UK and globally. Companies won preferred bidder status through open and fair competition.
It is now estimated that more than 60% of the construction cost will be placed with UK firms, against an initial estimate of 57%.
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.
Preferred bidders announced today with combined contract values of more than £1.3billion include:
- Balfour Beatty Bailey (Joint Venture) comprising of Balfour Beatty, London and NG Bailey, Ilkley, Yorkshire – electrical cabling and equipment installation *
- Cavendish Boccard Nuclear (Joint Venture) comprising of Cavendish Nuclear, Bristol and Boccard, Lyon, France – mechanical pipework and equipment installation *
- ACTAN (Joint Venture) comprising of Doosan Babcock, Renfrew and Crawley, with Axima Concept and Tunzini Nucleaire, both of Paris, France – heating, ventilation and air conditioning*
- Laing O’Rourke, Dartford – construction of workers’ campus accommodation
- ABB UK, Stone, Staffordshire – power transmission
- Premier Interlink WACO UK Ltd, East Yorkshire – construction of temporary buildings
- Weir, East Kilbride – large pumps for cooling water
- SPX ClydeUnion Pumps – main pumps for feedwater system and cooling water system
Two further companies are already working on the project:
- G4S, Surrey – security
- Aggregate Industries, Leicestershire – construction of the Cannington bypass, Park & Rides and highway improvements
Project management contracts have been signed with the following companies, with the value of each contract to be determined for services that will be provided over the duration of construction:
- KBR, Greenford and Leatherhead – project management of site operations and equipment contract management
- Jacobs, Reading – project management of building and civil work
- Gleeds, London and Gloucester – contract management services
- Faithful+Gould, Bristol – contract management services
- Turner and Townsend, Leeds – project controls and project management
- Mace, London – contract management services
An innovative business approach, working together with the Somerset Chamber of Commerce, has led to the involvement of local companies close to the Hinkley Point C site in Somerset. It has encouraged them to join forces to supply site services, transport and accommodation.
Key South West joint ventures announced today with combined contract values of more than £225m include:
- Somerset Larder, six Somerset food producers – catering
- HOST, four Somerset companies – workers’ campus accommodation management
- Somerset Passenger Solutions, two Somerset companies – transporting workers by bus
- Somerset Infrastructure Alliance, three South West companies – site infrastructure services including site road maintenance, landscaping, signage and fencing
- COMA, five South West businesses – construction utilities including electrical networks across the site and support services
Today’s announcement shows the potential of the Hinkley Point C project to give a significant boost to the UK’s supply chain and skills development.
The major supply chain partner companies will need to let sub-contracts for manufacturing work, potentially allowing many more firms to benefit from the project.
EDF Energy CEO Vincent de Rivaz, said: “Hinkley Point C will be at the forefront of the revitalisation of the UK’s industrial and skills base, and we have worked hard to build a robust supply chain to support new nuclear in the UK.
“The project will boost industrial stamina in the UK and kick-start the new nuclear programme. Experience gained at Hinkley Point will help firms be successful in nuclear projects around the world.”
Andrea Leadsom MP, Minister for Energy and Climate Change, said: “This is great news - Hinkley Point C offers a tremendous opportunity for the UK supply chain and we’ve worked closely with EDF to ensure British firms benefit.
“As part of our long-term plan to support the industries of the future, create jobs and provide secure, affordable energy supplies for hardworking families and businesses, we are backing our nuclear sector by fostering innovation and opportunity as we cut carbon emissions.”
Today’s announcement has been welcomed by the Confederation of British Industry. CBI Director General John Cridland said: “Hinkley Point will set the ball rolling for the UK’s nuclear new build programme, putting us on the right path to achieving a secure and sustainable energy mix.
“It represents a real opportunity for growth, with the potential to create tens of thousands of jobs for people – not just in the local community, but up and down the whole country.”
In order to prepare the potential workforce EDF Energy has invested £11 million in training, education and skills in Somerset, with the opening of both a new Energy Skills Centre and a Construction Skills Centre in partnership with Bridgwater College. The project will provide a wealth of apprenticeships and opportunities for the future workforce and in doing so will leave a long-term and sustainable legacy for the region.
EDF Energy has also worked closely with unions on its new nuclear programme in the UK. Agreements have already been reached with the Unite, GMB, UCATT and Prospect unions for the Hinkley Point project. These cover safety, quality, productivity, pay, industrial relations, as well as the development of skills and training.
All parties are working so that a final investment decision can be taken at Hinkley Point C as soon as possible.
* Companies have been encouraged to form Joint Ventures (JVs) in order to bring together experience and knowledge – a number of key contracts have therefore been awarded to JVs which involve UK and French companies.
For more information contact:Gordon Bell
Senior External Communications Manager - NNB
Notes to editors
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
EDF Energy is one of the UK’s largest energy companies and the largest producer of low-carbon electricity, producing around one-fifth of the nation's electricity from its nuclear power stations, wind farms, coal and gas power stations and combined heat and power plants. The company supplies gas and electricity to 6 million business and residential customer accounts and is the biggest supplier of electricity by volume in Great Britain.
EDF Energy’s safe and secure operation of its eight existing nuclear power stations at sites across the country makes it the UK’s largest generator of low carbon electricity. EDF Energy is also leading the UK's nuclear renaissance and has published plans to build four new nuclear plants, subject to the right investment framework.
These new plants could generate enough low carbon electricity for about 40% of Britain’s homes. They would make an important contribution to the UK’s future needs for clean, secure and affordable energy. The project is already creating business and job opportunities for British companies and workers.
Through Our Better Energy Ambitions, EDF Energy has developed one of the biggest environmental and social programmes of any British energy company.
In 2014 EDF Energy received seven ‘Big Ticks’ in the Business in the Community (BITC) Responsible Business Awards. In 2013 EDF Energy received the Environmental Leadership for Behavioural Change Award in the national Environment and Energy Awards and was highly commended in the first ever pan European Corporate Social Responsibility Awards scheme for its Sustainable Schools programme – the Pod.
EDF Energy is part of EDF Group, one of Europe’s largest power companies. The company employs around 15,000 people at locations across the UK.
To find out more about the UK's energy challenges look at www.edfenergy.com/energyfuture/