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Greenpeace gives 8 reasons why UK should now give up on Hinkley nuclear station

protest-Hinkley-C8 reasons George Osborne needs to let Hinkley nuclear plant go http://www.greenpeace.org.uk/blog/climate/8-reasons-george-osborne-let-hinkley-nuclear-go-20160216 by Richard Casson — 16 February 2016 George Osborne wants to build a new nuclear plant in Somerset — Hinkley Point C. If it goes ahead it’ll be the first nuclear power station to come online in the UK in 30 years.

But right now it’s increasingly looking like a big if. Because Hinkley is on the verge of becoming a national omnishambles. It’s suffered huge delays, safety concerns, and it’s clear the money could be far better spent. Here are eight reasons the Chancellor needs to #LetHinkleyGo.

1. The ‘unconstructable’ nuclear reactor

When Hinkley was first proposed in 2007, part of the Labour government’s sales pitch at the time was that it’d use a newfangled European Pressurized Reactor (EPR for short). Sounds appealing, right? Not so much. There are three sites where EPRs are under construction — and all three are experiencing serious difficulties. One academic even described the type of reactor as ‘unconstructable’. Not exactly encouraging is it, George?

2. The cost is astronomical

Back in 2008 the cost of the two Hinkley reactors was put at a princely £5.6 billion. The price kept going up and by 2015 that was revised to £18 billion. And now there are rumours it could clock in at a whopping £24.5 billion. That’d make Hinkley (wait for it)… the single most expensive object on earth.

3. About that reactor again…

Even if Hinkley’s “unconstructable” reactor is actually constructed, there are further concerns over how safe it’ll be. In Flamanville, France — where a power station with the same reactor design is being built — construction has suffered huge setbacks because of ‘anomalies’ in the reactor steel vessel. You don’t have to be a nuclear expert to know that the word ‘anomalies’ is NOT a good word to hear when talking about the centrepiece of a fission reactor.

4. Does anybody even want it anymore?

Like a fading teenage romance, everyone seems to be falling out of love with Hinkley. The Daily Mail called it the biggest white elephant in Britain. Financial creditors and investors have warned against building Hinkley. And now there are rumours that within EDF (the French company that will build Hinkley’s reactor), some of the board members who oversee the running of the company have spoken out against the project. And that’s just the tip of the iceberg (see here for a long list of newspaper articles opposing the Hinkley deal).

5. Onshore wind is already cheaper (and soon solar will be too)

The world of energy is changing. The cost of wind power and solar energy are falling fastand will only drop more in the future. Meanwhile, analysts have calculated that providing electricity from onshore wind would work out cheaper than Hinkley — even with the costs of providing for backup when the wind doesn’t blow. Meanwhile the construction costs for Hinkley only seem to go one direction — upwards.

6. It’s already 8 YEARS overdue

When Hinkley was first announced, we were told that electricity generated by the power station would be ‘cooking Christmas turkeys by 2017’. But then the operational date was pushed back to 2018. A few months later it became 2019. Last autumn EDF admitted it’ll be more like 2023… until they changed their mind and announced it’ll be even later. Contrast this with the London Array – the world’s largest offshore wind farm – which took less than three years to build, and it makes Hinkley look like the Christmas turkey.

7. We could be forced to pick up the cost

With all the delays and setbacks, some are starting to wonder if Hinkley could get canned completely. If it doesn’t go to plan, who will pick up the cost? The answer — taxpayers will. The funding mechanism the government put in place means that if Hinkley is abandoned, or doesn’t work when completed, UK citizens could be required to shell out a stonking £17 billion to French and Chinese backers to cover their costs.

8. The (not so) little matter of nuclear waste

We are nowhere near finding a storage solution for our existing nuclear waste, never mind future nuclear waste produced by Hinkley. It will take approximately 35 years to build a nuclear ‘storage solution’ (read: bury it underground). And even if it goes ahead soon the waste fuel from Hinkley would not be dealt with until near the end of the 22nd century. So far nobody knows where that will be or how it will happen. Oh and it will cost an estimated £12 billion.

Sign the petition: Tell George Osborne to let Hinkley go

February 17, 2016 Posted by | politics, UK | Leave a comment

EDF in its financial woes, extends the life of four nuclear reactors

AREVA EDF crumblingEDF extends life of four nuclear reactors  Final decision on investment in Hinkley Point still pending, with analysts and activists casting doubt on the project, Guardian,  16 Feb 16, EDF plans to extend the life of four nuclear power plants in the UK and has said it is close to announcing a decision on its investment in two new reactors at Hinkley Point.

The French energy company said the lives of the Heysham 1 and Hartlepool plants would be extended by five years until 2024, and the closure dates of Heysham 2 and Torness will be delayed by seven years to 2030………

EDF, which is 85% owned by the French government, announced the extensions as it reported a 68% plunge in profits last year and cut its annual dividend. The company, which has been hit by falling power prices, said net debt increased by €3.2bn (£2.5bn) to €37.4bn.

The fall in EDF’s annual net profit to €1.19bn was caused by a tripling of provisions, asset writedowns and other one-off items to €3.64bn. EDF surprised markets by cutting its dividend to €1.10 a share after paying €1.25 for the previous three years.

But the company restated the appeal of the £18bn Hinkley Point project in Somerset. EDF has delayed deciding on the plan due to funding problems, according to reports in France…….

Paul Dorfman of the UCL Energy Institute said EDF’s financial position cast doubt on the prospects for Hinkley Point. “Unfortunately, with the best will in the world, it may just not happen,” he told the BBC’s Today programme. “EDF shares have crashed to half their value a year ago; the budget for Hinkley alone is bigger than EDF’s entire market value.”

Greenpeace said EDF and the French government were in disarray over the cost and risk of the Hinkley project.

Doug Parr, Greenpeace UK’s policy director, said: “EDF’s accounts show growing debts and falling earnings. Hinkley is a bad investment and most people with an ounce of financial acumen have now come to realise this. George Osborne stands alone in defending Hinkley’s honour.” http://www.theguardian.com/business/2016/feb/16/edf-extends-life-of-four-nuclear-reactors-hinkley-point-decision

February 17, 2016 Posted by | business and costs, France, UK | Leave a comment

EDF dodges making a decision on UK Hinkley nuclear station

Fears over UK’s energy as EDF dodges Hinkley nuclear plant decision, Standard UK,  MICHAEL BOW, 16 Feb 16   Europe’s biggest energy firm, EDF, fuelled concerns about keeping Britain’s lights on after it was forced into a backdoor rights issue and failed to commit to the UK’s biggest nuclear project.

The UK’s energy future was left up in the air after EDF dodged a decision on Hinkley Point C, the planned nuclear plant which will provide 7% of Britain’s electricity and employ 25,000 people by 2025.

The French giant said the first phase of construction would launch “very soon”, but failed to commit to a timescale or confirm whether it had funding in place, casting doubt on the future of the project.  ……

Prime Minister David Cameron has been trying to smooth through the £18 billion construction costs of the plant in Somerset by wooing Chinese investors to back the project.

EDF has already sold a 33.5% stake to China General Nuclear Power Corporation, but today’s dividend cut could ignite fears the energy giant lacks the firepower to execute the plan.

The group confounded investor expectations by slashing the dividend to €1.10 for 2015 from €1.25 in 2014. It has also offered shareholders the choice of taking shares instead of cash……

Lower prices in the energy market have hurt EDF, particularly for wholesale electricity, which are stretching the company’s finances.

Earlier this month EDF Energy, the firm’s UK energy company, also cut standard gas prices by 5%.

The tumbling price of power has forced EDF to cuts costs and investments. It reduced operating expenses by €300 million last year and will seek to take out €700 million more within the next two years… http://www.standard.co.uk/business/fears-over-uks-energy-as-edf-dodges-hinkley-nuclear-plant-decision-a3181446.html.

February 17, 2016 Posted by | general | Leave a comment