The Japanese conglomerate behind plans to build a new reactor at the Wylfa nuclear site in Wales is expected to call on the Government to take a direct stake in the new plant, or risk the £27bn project falling through.
The last-ditch talks between Hitachi chairman Hiroaki Nakanishi and the prime minister were scheduled for the same day that fresh cracks in one of the UK’s oldest nuclear plants underlined the need for new investment in low-carbon power.
A string of power plants, including the faltering Hunterston nuclear plant, are set to close by 2025.
Hitachi’s 2.9 gigawatt nuclear project could help to fill the gap created by the closures, but the group is not willing to take on the full risk burden without the backing of other private investors and government involvement.
The conglomerate is planning to back away from the project entirely unless the UK agrees to help finance it or take a stake in the plant alongside investments from the Japanese government, according to local media reports.
The nuclear exit would be a major blow to the UK’s struggling ambitions to build a fleet of low-carbon, nuclear power plants to replace the ageing coal and nuclear plants.
EDF Energy said the new cracks in its 42-year old Hunterston reactor mean that the plant will be closed for much of 2018, meaning more expensive gas-fired power may be required to fill the gap in the UK’s power supplies this summer. Hunterston is scheduled to shut entirely by 2023.
Number 10 has remained tight-lipped over its negotiations with Hitachi, and a spokesman declined to comment on the latest talks.
Hannah Martin, of Greenpeace, said the “information blackout” is “unjustifiable” because of the high costs to be paid by energy users to support the projects.
“The public have a right to know what the government is planning to do with their money and why,” she said.
“Major Western economies are reducing their exposure to nuclear, so why is Britain doing the exact opposite? It would make no sense to waste yet more on expensive and outdated nuclear when technologies such as offshore wind can do the same job faster and cheaper,” Ms Martin added.
Electricity generation to fall by 40% after nuclear plant cracks find, BBC News, 3 May 2018
Electricity output from the Hunterston B nuclear power station could fall by 40% this year after dozens of cracks were discovered in one of the reactors.
The North Ayrshire power plant’s director Colin Weir said it would be necessary to reduce generation.
But he insisted that Hunterston B, which is scheduled to be in operation until 2023, was still safe.
The company running the plant, EDF Energy, expects the damaged reactor to return to service by the end of 2018.
Speaking to BBC Radio Scotland’s Good Morning Scotland programme, Mr Weir said the reduction in output comes after the “right and appropriate” decision was taken to put one of the reactors offline after a “slight increase” in the number of defects.
He explained: “Obviously this year we will be reduced in output – it will be around a 40% reduction in our planned output for this year – taking this decision, the right and appropriate safe decision to have the unit off while we do this assessment.”
First Minister Nicola Sturgeon said she would seek “further assurance” on safety from EDF Energy when she meets its representatives later. ……
In March this year a planned inspection of the graphite bricks that make up the core of Reactor 3 uncovered new “keyway root cracks”.
These were found to be developing at a slightly higher rate than anticipated, operator EDF Energy revealed.
The reactor had been expected to restart a few weeks after it was taken offline, but that has now been delayed.
Operating for longer
Cracks were previously found in one of the reactors at the plant, which was opened in 1976, following routine inspections in 2014.
At the time, the Scottish government said the development was concerning, and asked for reassurances from nuclear regulators.
FoE Japan 2nd May 2018, Urgent Joint Statement: Hitachi’s nuclear export transfers risks to both Japanese and British people while companies get profits. Hitachi’s
Chairman Nakanishi is reportedly going to visit British Prime Minister
Teresa May on 3rd May to ask the U.K. government to take a direct stake in
Wylfa Newydd nuclear power project in Anglesey, Wales.
Hitachi’s struggle just shows the risks of the nuclear power project is simply huge. While
putting huge risks and cost onto both Japanese and British people, it is
unacceptable that companies and banks take profit. Friends of the Earth
Japan jointly with People Against Wylfa B released an urgent statement.
The report says Hitachi is going to ask not only for direct investment but also
an assurance for a power purchase agreement. Hitachi’s struggle just
shows the risks of the nuclear power project is simply huge. In February,
Mr. Nakanishi already expressed the view that the project would not happen
without government commitment and stated “Both UK and Japanese
governments understand that the project would not go on without the
commitment by the governments”.
To reduce the risk of the project, the project is said to be insured by Nippon Export and Investment Insurance
(NEXI), 100 percent Japanese government owned export credit agency. In
addition to huge construction cost, nuclear projects are associated with
various risks such as accidents, increased cost for tougher regulations,
opposition from local people, radioactive waste management and so on.
Risks are too huge to manage. Thus, it is clear that companies should decide to
retreat from the project. While transferring risks of the project to
people, it is unacceptable that the companies and banks take profits.
The Spokesperson from People Against Wylfa B, Dylan Morgan says; “Don’t pour
good money in to the bottomless black hole of nuclear power. This is an old
fashioned, dirty, dangerous and extortionately expensive technology. The
Fukushima triple explosions and meltdowns has and will continue to cost the
people of Japan greatly. There is no end in sight for this continuing
tragedy, which means that no new nuclear reactors are going to be built in
Japan. It is unacceptable that Japan wish to export this deadly technology
to another state in order to keep Japan in the nuclear club.”
Times 2nd May 2018 , The boss of Hitachi is expected to meet the prime minister tomorrow in an
attempt to secure UK government investment in its proposed nuclear plant on
Anglesey. Hiroaki Nakanishi is scheduled to meet Theresa May as the clock
ticks on the company’s deadline to agree the outlines of a financial
support package by the middle of this year.
Hitachi, the Japanese conglomerate, has spent £2 billion so far on its Horizon venture, which is
developing plans for a new power station at Wylfa. It has threatened to
withdraw funding unless it receives assurances that financial support can
be agreed. The 2.9-gigawatt power station is due to start generating in the
mid-2020s, becoming Britain’s second new nuclear plant after the £19.6
billion Hinkley Point plant being built in Somerset. https://www.thetimes.co.uk/edition/business/hitachi-seeks-to-clear-clouds-over-horizon-hpfk9gpjd
Scotsman 30th April 2018, The Scottish Government will this week face calls to hold a review into
concerns over nuclear weapons “convoys” travelling through towns and cities
in Scotland. The Greens have said the SNP government, which opposes nuclear
weapons, is responsible for community safety and emergency planning and
cannot dismiss the issue as being reserved to Westminster.
MSPs are preparing to debate the issue at Holyrood on Wednesday, where Green MSP
Mark Ruskell will call for a review.
Up to eight times a year, a convoy of heavy trucks containing weapon materials and nuclear warheads travels
between the Aldermaston and Burghfield atomic weapon plants in Berkshire to
the Royal Navy base at Coulport on Loch Long where the UK’s nuclear weapons
are stored. These trucks will often be carrying weapons materials for
maintenance or replacement. But a Freedom of Information request by Green
MSPs last year found that none of the relevant local authorities the trucks
pass through has conducted risk assessments in relation to the convoys. https://www.scotsman.com/news/politics/greens-seek-review-of-nuclear-convoy-safety-1-4732236
Daily Record 30th April 2018, Dozens of elite gun cops tasked with protecting Britain’s nuclear weapons
at Faslane and other military sites are too unfit to carry firearms, it
emerged yesterday. A shocking report into the Ministry of Defence Police
reveals “concern” at the growing number who have been sidelined. The
crisis has emerged after tougher fitness tests equal to those taken by
other armed officers were introduced. Some MoD police – whose jobs include
guarding the nuclear submarine fleet at Faslane, SAS headquarters in
Hereford and GCHQ’s Cheltenham base – have failed the new tests. Others
have simply refused to take part, the Mail on Sunday reported. https://www.dailyrecord.co.uk/news/scottish-news/gun-cops-faslane-too-unfit-12451711
Times 29th April 2018, New nuclear power plants are likely to blow their budgets and arrive late unless their designs are completed before construction starts, a report has warned. Ministers, wary of cost hikes and delays, are wrestling with how to financially support replacements for ageing coal-fired and nuclear plants across the UK.
Hitachi is trying to strike a deal with ministers to build a £10bn-plus plant at Wylfa on Anglesey, where taxpayers are likely to take a stake.
Researchers at Energy Technologies Institute found that most high-cost projects had started construction with incomplete designs, whereas work on low-cost plants had begun only once design and planning had been finalised.
TOKYO — Hitachi will ask the U.K. government to take a direct stake in the company that is to build and operate a nuclear power plant in Wales which is now 100% owned by the Japanese industrial company. Hitachi expects the U.K. government will invite private British companies to participate and hopes to reduce its own stake to less than 50%.
Nikkei has learned that Hitachi Chairman Hiroaki Nakanishi will shortly travel to the U.K. to discuss the ownership issue and other project terms with British Prime Minister Theresa May.
Hitachi has recently concluded that the risk of proceeding with the Anglesey project, at an estimated cost of more than 3 trillion yen ($27.5 billion), is too great to manage on its own as a private company. It plans to withdraw from the project if restructuring negotiations fall through. Such a move would have significant repercussions for nuclear power policy for both Britain and Japan.
Hitachi acquired complete ownership of the U.K.’s Horizon Nuclear Power in 2012 for 89 billion yen as part of its plan to expand its nuclear business from Japan to foreign markets. It has spent about 200 billion yen preparing for Horizon’s first project, the construction of a plant on the Isle of Anglesey in Wales.
Hitachi hopes to lower its stake in Horizon to less than 50% before construction begins at Anglesey. It has requested that the British government take a direct stake in Horizon and then invite local enterprises to invest.
In response to Hitachi’s concerns, the British government earlier this month proposed that U.K. interests and Japanese public and private interests join with Hitachi to move Anglesey forward. The three sets of shareholders would each put 300 billion yen into the project, giving each a one-third stake. According to sources, the company and the Japanese government see it as too risky for Japanese interests to retain a majority shareholding and hope that British interests will acquire a controlling stake.
London has been leery up to now of taking a direct stake in any new nuclear construction. Hitachi will likely seek in direct talks a commitment to U.K. government investment as well as to additional support that may be necessary to sustain the operation.
Other key project terms also remain unsettled, including the degree to which London would guarantee the 2 trillion yen in loans Hitachi sees as needed to finance the Anglesey development and the price to be paid to Hitachi for the electricity from the plant. London’s proposed price is 20% lower than what Hitachi has requested. The Japanese government plans to guarantee the project’s loans.
The U.K. in December approved the design of the reactor that Hitachi plans to use in Anglesey. The project is now in its final pre-construction phase. The company has targeted to begin construction next year.
With its domestic nuclear industry still crippled by the legacy of the 2011 Fukushima nuclear accident, Japan has been eager to promote nuclear exports. The drive for overseas orders however has struggled as many governments reconsider nuclear power’s merits.
Cumbria County Council (CCC) have recognised the fundamental flaws within the latest process to find a location to bury the nation’s nuclear waste. The CCC response to the government consultation echos many of the points which Cumbria Trust has made. In particular the failure to address the need for secure interim storage, despite the most dangerous elements within waste being too hot to bury for well over a century. They also highlight the lack of clarity over the community’s right of withdrawal, something of particular concern to Cumbria Trust. As we have previously stated this is a process which has been designed to be very simple to enter and very difficult to leave.
Five years ago it was CCC which called a halt to the search process, and their concerns have not gone away.
The News & Star has reported this week:
A NEW search to find a community willing to host an underground nuclear waste storage bunker is based on ‘fundamentally flawed’ government policy, council officials in Cumbria have said.
The nationwide scheme to identify a location for a £12 billion geological disposal facility buried at least 200 metres below the surface was relaunched by the government in January and is expected to take 20 years to secure.
It promises incentives including £1m per year for five years for the five communities that volunteer to be on the shortlist – with £2.5m a year for the two that go forward to the testing stage, which would see deep boreholes dug underground.
But experts within Cumbria County Council have instead called for more clarity on how the high level waste – the majority of which is currently kept in storage vessels in west Cumbria – will be kept safe if a suitable location is not identified within the time frame.
They also state the right of willing communities to withdraw from the process is not clear enough within the proposal, while there is no detail about how the waste could be retrieved at a later date if new technology to dispose of it more efficiently is developed.
Whitehaven News 26th April 2018 , Search to find nuclear waste storage site is ‘flawed’, Cumbria council chiefs claim. Cash incentives are being offered to communities that step forward to host an underground waste bunker.
A NEW search to find a community willing to host an underground nuclear waste storage bunker is based on ‘fundamentally flawed’ government policy, council officials in Cumbria have said.
The nationwide scheme to identify a location for a £12 billion geological disposal facility buried at least 200 metres below the surface was relaunched by the government in January and is expected to take
20 years to secure. It promises incentives including £1m per year for five
years for the five communities that volunteer to be on the shortlist – with
£2.5m a year for the two that go forward to the testing stage, which would
see deep boreholes dug underground.
But experts within Cumbria County Council have instead called for more clarity on how the high level waste -the majority of which is currently kept in storage vessels in west Cumbria
– will be kept safe if a suitable location is not identified within the time frame.
They also state the right of willing communities to withdraw from the process is not clear enough within the proposal.
The authority’s official response, expected to be adopted by members of its cabinet
committee in Carlisle today, states: “The county council believes the
policy on which this consultation is based is fundamentally flawed.
The Windsor-Essex County Health Unit and the Town of Amherstburg will be starting Potassium Iodide pill distribution in the primary zone near the nuclear generating station.
Residents in the zone, 16.1 km from Enrico Fermi 2 Nuclear Generating Station (Fermi 2), will begin getting the pills on May 7.
KI pills block the thyroid from absorbing radioactive iodine which may be released during a nuclear incident.
In the very unlikely event of a nuclear emergency, KI pills would help to prevent the long term development of thyroid cancer.
Residents that live within the primary zone and on Boblo Island will be receiving letters this week with details inviting them to pick up free KI pills for their home and ask any questions they may have.
The health unit says if you do not receive a letter inviting you to pick up KI pills, your home does not fall within the primary zone.
Residents living within the secondary zone will have an opportunity to receive pills for their home in the near future.
KI pills are only to be taken if instructed by the Chief Medical Officer of Health for Ontario. They should be stored in a safe, dry, and accessible place along with your 72-hour emergency kit.
Health unit officials say the risk has not changed at Fermi 2, however what has changed is the regulatory framework for Canadian nuclear installations.
The Canadian Nuclear Safety Commission (CNSC) has mandated that all residents within the primary zone of a nuclear installation have KI pills available in their homes.
While Fermi 2 is not regulated by the CNSC, health unit and town officials want the residents living within the primary zone of Fermi 2 to be as prepared as all other Canadian residents.
For more information on KI pills and KI distribution, please visit www.wechu.org/KI or call 519-258-2146 ext.
Kent Online 23rd April 2018 , Romney Marsh could become the country’s first nuclear waste site.
Folkestone & Hythe District Council (FHDC) has asked the Government for
more information on its Geological Disposal Facility (GDF). The proposal,
to build a radioactive waste site the size of 22 Wembley Stadiums up to
1,000m underground in the UK, is currently out to consultation with
councils. http://www.kentonline.co.uk/romney-marsh/news/kent-to-house-nuclear-waste-site-181715/
Kilkenny People 23rd April 2018, Kilkenny County Council’s ‘concern’ over Hinkley Point nuclear power
expansion. Local councillors last week agreed to write a ‘statement of
concern’ regarding the expansion of the nuclear power plant at Hinkley
Point in Somerset, England.
Cllr Malcolm Noonan and Tomas Breathnach raised
the matter at the monthly meeting of Kilkenny County Council. Cllr Noonan
noted that Tuesday was the cut-off for submissions, in what he described as
a ‘very limited’ consultation process.
BBC 25th April 2018 , Plans to remove every scrap of radioactive waste from a former nuclear
plant are under review, it has emerged. The former Trawsfynydd site in
Gwynedd has been undergoing decommissioning since it ended generation in
1991.
Originally, the power station was due to be left in a state of “care
and repair” by 2030 and finally cleared entirely by the 2090s. But the
review could see the remaining structures continue to be removed and
low-risk waste left on site. The details were revealed in presentations to
the Snowdonia National Park Authority by the body responsible for
cleaning-up the UK’s old nuclear plants.
At the moment, the Nuclear Decommissioning Authority (NDA) plans to mothball the Trawsfynydd site by
about 2029, leaving any existing radioactive material there to decay
naturally over time, before clearing everything. But the park authority was
told that a case is now being developed for continuous decommissioning and
for some low-level radioactive waste to be left there permanently.
Officials said the concrete reactor buildings were decaying structurally,
and work should get underway to remove them. But a suggestion that
low-level radioactive waste might remain on site has been met with
criticism by some in the anti-nuclear lobby.
Robat Idris, from the campaign group People Against Wylfa B, told BBC Radio Cymru: “Once again, we are
seeing the nuclear industry changing what they say about this process.
“Originally, the promise was that they would clear the entire site of
radioactive material, but now it looks like they are considering keeping
some of that material there for a very long time, if indeed they will
remove it at all. http://www.bbc.co.uk/news/uk-wales-north-west-wales-43898737
Mirror 22nd April 2018, Survivor of Britain’s nuclear tests lost all his teeth, had thyroid tumour
and wife suffered two stillbirths – and he was one of ‘lucky’ ones
EXCLUSIVE: Sixty years ago on Christmas Island, these army veterans had to
put their hands over their eyes as a nuke 100 times more powerful than
Hiroshima was set off – and more than half their unit died of cancer. https://www.mirror.co.uk/news/world-news/survivor-britains-nuclear-tests-lost-12409628
