Nuclear summer

Last month the government gave the thumbs up to a new generation of nuclear power stations. By 2017, four reactors could be up and running and the entire programme could see a total of 12 reactors come on-stream. At £3bn a throw that’s got to be good news for the industry. Some are already warning of skills shortages, but are specialists really needed to build these great lumps of reinforced concrete, or can skills and experience be transferred from other sectors?

CM asked the experts: Andrew McNaughton, group managing director of Balfour Beatty, Paul Campbell, nuclear sector director at Costain, and Bill Bryce, chairman of the Nuclear Industry Association’s new-build working group.

Who will build them? The power companies. Following the government’s go-ahead, EDF has already announced plans to have four reactors up and running by 2017 and British Energy has named eight of its sites as possible locations for reactors.

Expect the big hitters from the contracting and consulting world together with nuclear specialists and the firms that design and build reactors to team up. Procurement routes are as yet unclear.

What are the challenges? Designing and building a nuclear power station is much simpler than it used to be, largely due to the fact that the complex reactor design has been standardised. Energy companies will choose one of four ‘off-the-shelf’ reactors currently with the Nuclear Installations Inspectorate (NII) for approval.

‘The original fleet of Magnox stations were one-off designs, each different,’ says Campbell. ‘Today, reactor vendors’ designs will allow the UK to design and build power stations already developed and under construction elsewhere in the world.’

Which leaves the design and construction of the relatively straightforward buildings around the reactor, requiring civil, M&E and building expertise.

Challenges will come with finding suitable locations – these babies are big and need some solid ground conditions to house them – and in getting the generated power out of the station. Although some stations will be built on existing sites, grid networks may have to be upgraded.

How are they different from other civils work? Big projects mean big resources. McNaughton worked on the construction of Sizewell B, where the on-site team peaked at 6,000 people, which is on a similar scale to Heathrow T5. But unlike T5, the locations will be remote so luring workers there could be a challenge.

Unlike many civils jobs, tolerances will be very tight. And safety also dictates faultless levels of quality assurance – the client wants to get a nuclear licence at the end of it – so more inspection is carried out during construction and there are more ‘hold points’ requiring third-party inspection and authority to proceed. Expect to adhere strictly to specifications such as concrete mixes, pour procedures and inspection regimes.

What are the risks for the contractor? It depends on the procurement route. Under a standard form of contract, risks will be the same as for any other project. If the contractor is aligned somehow with the process and vendor, the risks will become more performance and commissioning-related.

A private finance initiative-type arrangement has been suggested, but McNaughton points out that only a few UK contractors will have the firepower to put up a stake – at £3bn a go, even a 5% contribution would be an eye-watering £150m.

Bryce underlines the risks associated with delays due to quality control, regulatory requirements and failure to pass the aforementioned hold points, and highlights contractors’ responsibility to put more effort into training and safety procedures. Fortunately, using prefabricated modules, which are pre-tested and validated offsite, it’s easier to trace faults and reduce construction-related risks.

Nuclear power station projects are absolutely marvellous: big boys’ toys with lots of stuff to do

Andrew McNaughton, Balfour Beatty

Another area of concern is the worldwide capacity for making specialist items. For example, there are few foundries big enough to produce the enormous castings required for a nuclear station. Currie & Brown estimates that as many as 80 to 100 new-build nuclear stations could be needed to meet global energy supply needs over the next few decades.

What are the margins? Similar to other civils projects, although niche specialist contractors might demand more money.

Who’s in demand? McNaughton says that he would be looking for high-calibre project managers and senior staff from the building and civils sectors with experience in big, complex projects. Combined with this, projects will require people with nuclear expertise drawn through alliances with, or by recruiting from, specialist firms such as NCC (recently bought by Amec), BAE, RollsRoyce and Fraser Nash.

And with the emphasis on quality assurance, expect quality control professionals to be in demand again.

Technical expertise from oil and gas, petrochemical, process industries, heavy civils and building industries will all be useful. ‘Our experience as market leader in the UK water sector will bring asset management and process skills,’ says Campbell. ‘Our technical teams from the oil and gas industry will bring process integration together with modular and off-site construction skills. All sectors will bring some expertise.’

When it comes to labour, quantity will be the issue. Bryce suggests recruits from Eastern Europe, Portugal and other overseas countries will be the answer. McNaughton points to openings for specialist welders able to deal with different metals.

Opinion differs over whether nuclear specialists will be in short supply. Some suggest that with less than 6% of nuclear industry workers aged under 24, an influx of graduates will be needed, while others say that because the specialist input required is limited, we’ll be OK.

What’s good about nuclear work... and what’s not? Civil engineer McNaughton waxes lyrical about his time on Sizewell B: ‘They are absolutely marvellous: big boys’ toys with lots of stuff to do’. On a nuclear power station you will witness the full spectrum of civil engineering work, he adds.

On the downside, you will be a very small cog in a very big wheel. And working on a nuclear power station may not go down very well at some dinner parties, depending on the company you keep…

What’s next? NII will carry out its assessment of the four possible reactor types available and the government will prepare a list of possible sites. These will then be assessed for safety, security, transport and environmental viability.

Then there’s planning. Get this wrong and there won’t be any new nuclear power stations. A reasonable timescale is crucial to funding, especially since the last reactor to be built, Sizewell B, was subject to the longest public inquiry in British history.

Power companies are eager for the government to pass its controversial Planning Reform Bill, currently going through parliament, which would streamline the planning process and includes measures to set up a national commission to decide whether a plant should be built. Expect opposition from the green lobby and those who consider allowing an unelected body to make planning decisions undemocratic.

Throughout these processes, developers will be assembling teams ready to begin work on site once planning’s finally secured. Actual work could begin by 2011, but delays could push it back to 2015. cm