Eon signals nuclear intent for Oldbury

By Ed Crooks, Energy Editor
Published: September 10 2008 23:14

Eon UK, the German-owned energy company, is looking at building a large nuclear power station at Oldbury in Gloucestershire, it emerged on Wednesday, in a sign that the drive for new nuclear investment is gathering pace.
Eon has signed an agreement with National Grid to connect up to the electricity network a 1,600 megawatt nuclear power station at Oldbury, the site of an old reactor that is to be shut this year.

The news emerged as the Nuclear Decommissioning Authority, the government body that runs the clean-up of old nuclear sites, announced plans to sell land at three of its most attractive locations for building new reactors, including Oldbury.
Eon is the first company to sign a grid connection agreement for a new reactor apart from British Energy, the nuclear generator.
An industry source said that while Eon’s move did not necessarily mean it would build a reactor at Oldbury, the agreement was a “signal of intent”.
Eon has said it wants to build two new nuclear power stations in Britain, but the confirmation that it is making progress with its plans will be welcomed by the government, which wants to avoid any single company dominating the construction of new reactors.
Electricité de France is in talks with British Energy over a possible takeover deal.
While strongly backed by the government, it would give EDF the majority of Britain’s reactors and first call on most of the best sites for building new ones.
Ministers are consequently keen for other companies to make use of NDA sites and British Energy sites that EDF might be forced to sell if the deal goes through.
The other sites put up for sale by the NDA on Wednesday were at Wylfa in Anglesey and Bradwell in Essex.
EDF has bought land around Wylfa, which along with the NDA land would create a site big enough for one of the 1,600 megawatt European pressurised reactor designed by Areva of France.
It is likely that if EDF succeeds in its bid for British Energy, it will sell that land, and industry sources suggested that RWE of Germany would be interested in buying it.
John Hutton, the business secretary, said: “Recent developments at home and abroad underline the urgent need for new nuclear to secure clean low carbon energy supplies for the future.
“Nuclear should be a key part of our future energy mix.”
He added: “The government will do all it can to open up opportunities for investors in the UK.”
Vincent de Rivaz, chief executive of EDF in the UK, said his company was continuing to talk to the NDA as well as British Energy.
“We agree fully with the secretary of state that there is an urgent need for new nuclear as part of a low carbon future and we now need to move ahead to deliver it,” he added.”
Copyright The Financial Times Limited 2008