With the UK Parliamentary Elections, it concluded that ‘normal service’ resumed, with newly appointed ministers looking to deliver on promises. Energy Security has been high on the political agenda; however, its precise meaning has many different meanings. To some, it means delivering affordable energy to the consumer; to others, it means changing to a ‘green economy’; and to others, it means being independent from other nations.
Nuclear addresses all these points and could have a major role in driving economic prosperity. However, the industry is not without its own issues, and historically, its PR has been arrogant and dreadful.
For nuclear to achieve its industry security, there are two main issues: project delivery and waste disposal. The UK has always wanted to be at the forefront of nuclear development with many different test reactors at Harwell, Culham, Windscale, Winfrith and Dounreay. For many different reasons, commercialisation has been elusive, and the ‘crown’ has been taken by others.
As the industry looks to the future and ponders whether to deploy Large Commercial Fusion Plants or untried SMR technologies, I am minded to remember the statement of a Japanese colleague that for new technology, “It thrives to be FIRST to be SECOND”—the rational to avoid the commercial consequences confronted by the ‘First of A Kind’ investor. As of today, nobody has a commercially operating SMR or Fusion reactor, and Australia has expressed its desire to wait for the SMR market to mature circa 2040’s2040s.
Despite the cries from those whose loyalties lie elsewhere that Hinkley is ‘too expensive, late, and a mistake’, the evidence analysis has yet to be published to justify abandoning this design investment again. We did that with Sizewell B and PFR.
The second issue is ‘Waste’. However, given the Crown Estate pronouncement on enabling land and the Continental Shelf to be developed, this may unlock restrictions that have beset the development of a national undersea repository for non-recyclable nuclear materials.
The recent 20-year operating licence extension announcement by Eskom’s Koeberg 1 is very welcome news. For new reactor projects, the financial implications for investors of a 60-year operating licence could be profound and could address both economic and energy security concerns. A significant confidence boost has been given to the nuclear industry by Canada’s Ontario Power Generation’s new Sustainable Finance Framework, which permits funding of a broader range of clean energy technologies, including new nuclear projects, and provides financing for existing nuclear facilities.
The global nuclear industry is showing signs of increased confidence and vibrancy from Brazil, Canada, Europe, the Indian Sub-Continent, to Asia. With its Energy and Nuclear network of international contacts, Prospect Law is well-positioned to support and guide your endeavours as you explore opportunities in this important industry.
About the Author
John Ireland is an internationally experienced energy specialist and senior business executive skilled in the development, negotiation, and management of businesses and technically complex contracts within both the Government and private sectors. John has grown complex businesses in Asia and the Middle East, and assisted international organisations to develop business in and from the UK through joint ventures and partnerships.
