BNFL get OK for British Nuclear Group privatization

30 March 2006 - BNFL, formally British Nuclear Fuels Limited, has today gained Government approval to sell its specialist nuclear clean-up business, British Nuclear Group. The announcement coincided with news that the cost of cleaning up the UK's nuclear power plants could be more than £70bn ($121.5bn), according to the Nuclear Decommissioning Authority. The authority's previous estimate of the cost had been £56bn.

BNFL's Chief Executive Michael Parker said: "The sale is a positive strategic move for both the business and our employees. It gives the business the opportunity of increased performance and at the same time gives our employees increased career opportunities and the chance to earn a better future.

"We now look forward to working closely with the Nuclear Decommissioning Authority (NDA) to develop the criteria against which preferred bidders will be selected. I expect that there will be significant interest from potential purchasers."

Whether the private sector has the appetite to take on British Nuclear Group in the wake of spiraling costs of decommissioning, remains to be seen. The increase in estimates clean-up costs from the Nuclear Decommissioning Authority resulted from the discovery of 50 per cent more toxic waste in surveys carried out by submarine vehicles.

Environmental group Greenpeace commented, "Every time the costs of cleaning up nuclear sites are looked at, the cost for the taxpayer spirals. Its just one more reason why it would be insane to countenance building more nuclear power plants across Britain."

Lawrie Haynes, British Nuclear Group's Chief Executive, said: "A strong British Nuclear Group means strong competition and that can only be good news for the NDA and the UK taxpayer. The stronger we are, the better placed we are to safely deliver what I call 'Big V', that is the value we can create for UK taxpayer by reducing the overall lifetime bill for cleaning up the UK's nuclear legacy.

"We will deliver this value by making real progress in safely cleaning up the sites, actively managing the supply chain while at the same time demonstrating our clear commitment to the communities in which we operate.

"The right buyer will enable us to complement our skills with theirs to create a powerful player in the global nuclear clean-up market and 'raise the bar' in terms of subsequent competitions. This delivers enhanced value to the NDA by accelerating nuclear clean up in the UK.

The company also welcomes the NDA's strategy document published today which, amongst other things, outlines that with a new owner we will have the opportunity to continue to run the contract for managing and operating the Sellafield site until 2012, giving British Nuclear Group a fantastic opportunity to deliver significant value for the customer over the lifetime of that contract.

In order to further drive a competitive clean-up market in the UK, the NDA's strategy also requires the evolution of the Reactor Sites business into two separate "bundles", still owned by British Nuclear Group, in the run up to competition. This will enable each bundle to be competed separately.

It is expected that the sale process will be completed by autumn 2007, earlier if possible.


Sponsored by FLSmidth

Related Articles

Two UK nuclear power plants shut down to stop boilers from cracking, EDF says

Power output at Heysham 1 and Hartlepool nuclear power plants, in the U.K., were temporarily taken offline to reduce boiler temperatures and prevent cracks, EDF announced on Friday.

New water treatment system at Fukushima projected to increase capacity, cut radioactive waste by 90 percent

A new high-performance water treatment system has begun testing at the Fukushima Daiichi Nuclear Power Station, and is expected to boost water treatment capacity by 500 tons a day while reducing its radioactive waste output by 90 percent, according to a release from Tokyo Electric Power Co. (TEPCO).

Follow Power Engineering on Twitter

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Buyers Guide Product Listings

Nondestructive Examination and Testing

Advanced nondestructive examination, NDE, techn...

Engineering Services

Structural Integrity Associates, Inc. (SI) is a...

Buyers Guide Company Listings

SPSI

SPSI is a privately held fabricator of high quality process, power and nuclear piping systems used primarily in the domestic and international power generation and petrochemical industries.

URS

URS plans, designs, engineers, constructs, retrofits, and maintains power plants and the systems that transmit and distribute electricity. Our expertise encompasses fossil fuel, nuclear, and hydroelectric power generating facilities, as well as alternative and renewable energy sources. We develop and install clean air technologies and perform major nuclear component

Serdula Systems Ltd

Provides consulting services from R&D, engineering, operations, and assessments to bid evaluation and feasibility studies to national and international organizations in the nuclear power industry.

The Merrick Group Inc

More than 20 years experience in the high-pressure water jetting industry. Our specialists offer vast experience and unparalleled expertise in industrial, nuclear plant cleaning maintenance.

Power Industry Wire News

Hula Partners Names Luke Marson as Chief Cloud HCM Architect

Hula Partners Names Luke Marson as Chief Cloud HCM Architect

Shipments of Princeton Power Systems' GTIB Converter Product Line Surpass 50 Megawatts

Shipments of Princeton Power Systems' GTIB Converter Product Line Surpass 50 Megawatts

The 2.4 Million Reasons We're Flying the Flag for Lung Month

The 2.4 Million Reasons We're Flying the Flag for Lung Month

CyberFuels, Inc. "Singular 96(TM)" Certified by California Independent Laboratory for Measures of MPG, Performance, and Environmental Impact

CyberFuels, Inc. "Singular 96(TM)" Certified by California Independent Laboratory for M...

Midwest Energy Emissions Corp. Announces 2014 Annual Meeting of Shareholders, and Business Update Meeting

Midwest Energy Emissions Corp. Announces 2014 Annual Meeting of Shareholders, and Busin...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>


Power Engineering Newscasts

EPA chief: carbon caps will boost economy
Australia, Russia enter nuclear power agreement with Argentina
Largest battery energy storage in North America now operational
EPA chief: carbon caps will boost economy Largest battery energy storage in North America now operational Australia, Russia enter nuclear power agreement with Argentina Texas’ Panda Temple combined cycle plant up and running
Siemens agrees to acquire Dresser-Rand
Safety concrete poured at UAE nuclear reactor power project
Foster Wheeler to upgrade natural gas-fired power plant’s emission controls
GE, TransCanada partner on natural gas turbine design
Energy storage global market to grow to $15.6B by 2024; DOE awards $2M to support taller wind turbine towers; Hinkley Point C nuclear project have financial incentives approved; N.J. company building waste-to-energy project in Ireland