EDF announces £1.3bn of Hinkley Point contracts

Balfour Beatty joint venture preferred bidder for £460m work package

French energy firm EDF has announced several of the contract winners for the construction of the first nuclear power station in the UK for more than 20 years.

The contracts, listed below, include a number of joint ventures with French firms, as the UK sector restarts after the 20 year pause. EDF estimates that 60% of the construction work will be done by UK firms.

The £16 billion plant at Hinkley Point in Somerset will use two EPR reactors and have a 3,200MW capacity. The plant, which is planned to be operational by 2023, will be able to supply around 7% of the UK's electricity.

EPR reactors are an evolution of the pressurised water reactor technology – as used at Sizewell B and in 58 nuclear reactors owned by EDF in France. They have enhanced safety features with quadruple safety systems. They are said to be more efficient and produce less long-lived radioactive waste compared with existing water reactors. They also use less uranium than current generation reactors.

EDF said Hinkley Point C will provide 25,000 employment opportunities on-site during its construction, including 1,000 apprenticeships.

Vincent de Rivaz, chief executive of EDF Energy, said: “Hinkley Point C will be at the forefront of the revitalisation of the UK’s industrial and skills base. The project will boost industrial stamina in the UK and kick-start the new nuclear programme. Experience gained at Hinkley Point will help firms be successful in nuclear projects around the world.”

Balfour Beatty and its partner NG Bailey, have been selected for the electrical contract. The work includes the design and installation of around 76,000 cables totalling over 3,000km in length; over 180km of cable containment support systems; fire and environmental sealing; design and installation of earthing systems, and specialist packages associated with data acquisition and plant control.

The six year project is expected to commence in 2016 with design work and the construction phase in 2017. Balfour Beatty said the deal will create 1,000 jobs including many specialist engineering roles.

Leo Quinn, Balfour Beatty Group Chief Executive said: “This project enables Balfour Beatty to deploy its experience and knowledge of the nuclear sector as the UK takes its next significant step forward in low-carbon energy.”

Preferred bidders announced today have a combined contract value of more than £1.3 billion. The full contract awards are pending the final investment decision. The deals include:

• Balfour Beatty Bailey (Joint Venture) comprising of Balfour Beatty, London and NG Bailey, Ilkley, Yorkshire – electrical cabling and equipment installation

• Cavendish Boccard Nuclear (Joint Venture) comprising of Cavendish Nuclear, Bristol and Boccard, Lyon, France – mechanical pipework and equipment installation

• ACTAN (Joint Venture) comprising of Doosan Babcock, Renfrew and Crawley, with Axima Concept and Tunzini Nucleaire, both of Paris, France – heating, ventilation and air conditioning

• Laing O’Rourke, Dartford – construction of workers’ campus accommodation

• ABB UK, Stone, Staffordshire – power transmission

• Premier Interlink WACO UK, East Yorkshire – construction of temporary buildings

• Weir, East Kilbride – large pumps for cooling water

• Clyde Union, Glasgow – main pumps for feedwater system and cooling water system