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

Regulators: Work environment improves at Palisades plant

The work environment has improved at Palisades Nuclear Plant in southwestern Michigan following concerns that drew attention last year, federal regulators said.

Hinkley Point B nuclear reactor taken offline for scheduled maintenance

One of two nuclear reactors at Hinkley Point B in the UK was taken out of service for a £40 million ($60.1 million) maintenance outage.

Follow Power Engineering on Twitter
Latest News
China US nuclear deal passes congressional review

US-China nuclear agreement passes congressional review

An agreement allowing American involvement in China's civilian atomic industry is set to be r...
NRC special inspection at Honeywell uranium hexafluoride leak

NRC begins special inspection at uranium enrichment facility

The U.S. Nuclear Regulatory Commission (NRC) launched a special inspection at a uranium conve...
House GOP says they have votes against Iran nuclear deal

House GOP says it has the votes to disapprove of Iran deal

House Republicans said Monday that they have the GOP votes to disapprove of the Iran nuclear ...
Winners and losers in Clean Power Plan Associated Press

Who wins and loses under Obama's stricter power plant limits

President Barack Obama is mandating even steeper greenhouse gas cuts from U.S. power plants t...
Olkiluoto 3 construction delay claims increased

Companies update claims over Finnish nuclear project delays

The Areva-Siemens consortium and Finnish utility Teollisuuden Voima Ovj (TVO) have both incre...
DOE opens funding for advanced nuclear reactor R&D

DOE opens funding for advanced nuclear R&D

The U.S. Energy Department (DOE) released a funding opportunity for research, development and...
Rosatom to build nuclear power plants in Vietnam

Rosatom plans construction of nuclear power units in Vietnam

Russia state-owned Rosatom signed a general framework agreement with Electricity of Vietnam (...
Regulators approve modified plans for Carlsband Energy Center

Regulators approve modified natural gas-fired power plant plan

The California Energy Commission (CEC) approved amendments for construction of a planned natu...

Power Engineering Current Issue

01/01/2015
Volume 119, Issue 1
1501pe-cover-lg
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.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015

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

Power Industry Wire News

EPA's Endorsement of Carbon Utilization in Clean Power Plan a Huge Win for Algae Industry

EPA's Endorsement of Carbon Utilization in Clean Power Plan a Huge Win for Algae Industry

Yuma Energy, Inc. to Present at EnerCom's The Oil & Gas Conference

Yuma Energy, Inc. to Present at EnerCom's The Oil & Gas Conference

SCI Engineered Materials, Inc. Reports Second Quarter 2015 Results

SCI Engineered Materials, Inc. Reports Second Quarter 2015 Results

National Grid US Applauds EPA's Clean Power Plan

National Grid US Applauds EPA's Clean Power Plan

Statement by California ISO President and CEO Steve Berberich

Statement by California ISO President and CEO Steve Berberich

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 >>