EDF Energy readies South West suppliers for Hinkley Point C contract signings subject to a final investment decision
EDF Energy has today announced that South West firms have been successful in a competitive process to find preferred bidders for services to the proposed Hinkley Point C power station in Somerset.
Services set to be provided by local companies include catering at the construction site, bussing of the workforce and accommodation management, as well as site utilities and infrastructure. Any contract signings are subject to a final investment decision.
Joining forces has been a key strategy behind the success of South West firms, by forming alliances in order to leverage scale and expertise, with the backing and support of Somerset Chamber of Commerce.
Hinkley Point C will provide reliable, low carbon electricity to meet 7% of UK demand. It will provide 25,000 employment opportunities during its construction, including 1,000 apprenticeships.
The scale of the project is impressive, with construction workers set to spend around £8 million a year on meals from local catering supplier, Somerset Larder. Serving the 8,000 meals per day needed at peak construction will take 1.5 million eggs and half a million kilos of meat, fish and vegetables annually. The workforce bussing contract is set to manage the anticipated 5,000+ daily passenger return journeys to and from the construction site, while the accommodation management contract will service the 1,500-bed workers’ accommodation campuses.
South West companies announced today with combined contract values of more than £225m include:
- Somerset Larder, six Somerset food producers – catering for the workforce
- HOST, comprising four Somerset companies – managing the workers’ campus accommodation
- 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
It is now estimated that more than 60% of the construction cost for Hinkley Point C will be placed with UK firms, against an initial estimate of 57%.
For the South West, the project represents a transformational opportunity for local companies as well as for job creation. Benefit to the regional economy is calculated at £100m a year during construction.
Together with the HPC project delivery team, Somerset Chamber of Commerce has been working hard to create an understanding of the scale of opportunity locally and to develop relationships between businesses necessary to form alliances.
Neil Murphy, CEO of Somerset Chamber of Commerce, said: “I am delighted with the news from EDF Energy today that preferred bidder status has been awarded to a number of Somerset businesses.
"The Somerset Chamber of Commerce has been working tirelessly over the past 3 years with EDF Energy, local businesses and consortiums made up of local companies, to achieve this position. Today’s news represents a significant boost for the Somerset economy.”
Ken Owen, Hinkley Point C Commercial Director, said: “Working with the Somerset Chamber of Commerce, our innovative business approach has led to the involvement of local companies close to the construction site.
"It has been really impressive to see the way that Somerset and South West companies have joined together to rise to the challenge. The innovative supplier alliances created will enable them to match the standards of safety, quality, value and scale required on such an important project.”
For more information contact:Gordon Bell
Senior External Communications Manager - NNB
Notes to editors
Further details on South West preferred suppliers announced today:
HOST comprises of:
- CML, Taunton
- John West (contractors) Ltd, Weston-super-Mare
- Brooking Ruse & Co., Weston-super-Mare
- Paragon Laundry, Yeovil
HOST is a new venture of four Somerset companies that have joined forces in order to bid for the accommodation management contract for the proposed Hinkley Point C power station.
The focus for HOST will be the management of the 1,500-bed accommodation campuses for the Hinkley Point C workforce (located in Bridgwater, Somerset and at the construction site). HOST is committed to Somerset with plans to source 95% of its future workforce and associated goods and services locally.
Somerset Larder comprises of:
- Cricketer Farms, Nether Stowey
- Cossey Produce Ltd, Bridgwater
- DJ Miles & Co, Porlock
- Pynes of Somerset, Bridgwater
- Mortimers Bakery, Yeovil
- Gundenham Dairy, Wellington
Somerset Larder was established in 2014 to bring together the county’s finest food and drink producers – to act as one – in order to compete for large catering contracts.
Somerset Larder estimate serving 8,000 meals a day to the workforce at peak construction. They have plans to provide the site with a full service, one stop catering solution including a central production kitchen and exclusive Somerset sourced products. Somerset Larder operate a ‘from field to fork’ ethos working with over 20 local food and drink producers ensuring only the finest, locally sourced, products make it onto canteen tables.
Somerset Passenger Solutions
Somerset Passenger Solutions comprises of:
- Crosville Motor Services Ltd, Weston-super-Mare
- First Bus, Taunton
Somerset Passenger Solutions has been established in order to bid for the Hinkley Point C main bussing contract. The venture comprises of a 50:50 joint venture between bus operator First Bus and Weston-super-Mare based family business, Crosville Motor Services Ltd.
As part of Hinkley Point C’s planning permissions and commitment to the local community, the vast majority of the workforce will travel to the construction site by bus.
Somerset Passenger Solutions has plans to operate high frequency services to the Hinkley Point construction site from dedicated Park and Ride sites, staff campus accommodation sites and from surrounding towns and villages for employees living across the area. They estimate employing 300 dedicated staff to manage the anticipated 5,000+ daily passenger return journeys during peak construction.
Somerset Infrastructure Alliance
Somerset Infrastructure Alliance comprises of:
- Skanska, Taunton
- RK Bell Ltd, Bridgwater
- Forest Traffic Services, Newport and Bristol
The Somerset Infrastructure Alliance will undertake various logistical services to ensure the free movement of the construction teams around the site, including carriageway and footway maintenance, site cleansing, traffic management, winter maintenance and minor civils works. The SIA will also be responsible for co-ordination of all works outside of the main construction areas.
COMA comprises of:
- Wessex Water, Bath
- RM Utilities Ltd, Exeter
- Hydroline Solutions Ltd, Somerton
- MMES 2012 Ltd, Bridgwater
- Boultings Group, Bridgwater regional office
COMA will focus on delivering the Construction Utilities contract which covers the maintenance and support services needed for the potable and waste water systems on the Hinkley Point C construction site, as well as the high and low voltage electrical networks across the site.
EDF Energy in the South West
In the South West EDF Energy employs around 4,000 people across three key sites; at Hinkley Point in Somerset, at Barnwood, near Gloucester, and at Exeter. We operate Hinkley Point B power station, which employs around 550 staff and 220 contract partners. A new nuclear power station, capable of supplying around 5 million homes, is planned at Hinkley Point, subject to a final investment decision. We have an operational support centre at Barnwood, while Exeter is home to one of EDF Energy’s three UK-based call centres. As well as currently generating enough power for some 1.5 million homes in this region, EDF Energy also provides gas and electricity to 610,000 customers with over 20% of those opting for one of the company’s Blue+ products backed by low-carbon generation. We make sure we buy enough electricity generated from a low-carbon nuclear source to match every unit of electricity we estimate our Blue customers use. EDF Energy is proud to power some of the largest companies in the UK, including sites for the Ministry of Defence, Tesco Stores Limited, Morrisons and Everything Everywhere, right here in the South West.