nuclear-news

Centrica to abandon nuclear plants in Britain -Too costly

By TOM MCGHIE AND LISA BUCKINGHAM, FINANCIAL MAIL ON SUNDAY

PUBLISHED: 22:20, 17 November 2012 | UPDATED: 11:02, 18 November 2012

Centrica is expected to turn its back on building new nuclear power stations in Britain and instead focus its expansion in the US.

The owner of British Gas will formally take the decision by January at the latest to end its partnership with French energy giant EDF to build a new Hinkley Point power station in Somerset.

According to senior company sources, only a dramatic change in Government policy on subsidising nuclear power would create a business case for investment.

[…]

Centrica is believed to see itself as the whipping boy for public anger over price increases and it is becoming increasingly disillusioned over the Government’s handling of energy policy, which is making long-term investment decision-making almost impossible.

Executives believe there are not enough incentives to make it worth their while putting more money into developing offshore wind projects.

In contrast, Centrica’s US business, Direct Energy, is doing well. Last year it invested $1 billion (£630 million) in the US and added 500,000 customers, bringing the total to 5.5 million.

With higher profit margins and shale gas offering huge opportunities, Centrica believes it is better to invest in the US.

[…]

At present, the company gets most of its gas from Qatar. In February last year it entered a £2 billion three-year deal with Qatargas to deliver liquefied natural gas to its Isle of Grain facility in Kent.

The vast quantity of shale gas discovered in the US has the potential to dramatically transform the world energy scene.

Shale gas is trapped underground, but can be extracted by using explosions and high pressure pumps to fracture the rock – a controversial process known as fracking.
Centrica has experience of fracking throughout the world.

[…]

Read more: http://www.thisismoney.co.uk/money/markets/article-2234448/Centrica-abandon-nuclear-plants-Britain.html#ixzz2CZk0F4oX

November 18, 2012 - Posted by arclight2011 | Uncategorized