Don't miss out on the nuclear bandwagon, firms are urged

Senior figures from EDF, Areva and Rolls-Royce told a conference in Leeds this week that they have already begun choosing suppliers and invited the region's companies to get involved with the enormous civil engineering programme.

Paul Howarth, a director at the government-backed National Nuclear Laboratory, said the programme could create 4,000 jobs in the UK alone and although the UK will be able to provide 80-90 per cent of the supply chain, he warned the demand on skills "is going to be significant over the next few years".

All but one of Britain's existing fleet of stations will be decommissioned by 2023, which coupled with binding targets in reducing environmentally harmful carbon emissions, means their replacement is imperative, said Dr Howarth.

The challenge for industry is "to get its ducks in a row and make sure the supply chain is sitting behind it" ahead of 2011-12 when major projects get fully underway, he added.

French utilities firm EDF plans to build up to four nuclear plants in the UK, with the first set to be operational by 2017. Areva, the state-owned French conglomerate, hopes to build another four on behalf of Horizon Nuclear Power, a joint venture between European utilities EOn and RWE. Rolls-Royce, the UK engineering giant, is set to supply both EDF and Areva.

Dr Howarth said the UK must invest in skills including core design and fuel performance, systems engineering, materials performance, water chemistry and safety performance assessment.

Another critical issue will be finance, which is expected to be secured by the utilities firms.

Alan Cumming, head of procurement for nuclear new build at EDF, said despite Liberal Democrat antipathy towards nuclear power, his firm has the support of the coalition to continue with its plans.

He said: "The case for nuclear is there. We have, as a country, a reliance on gas that needs to change. We must take our CO2 figures down. The lights will go out. We need to do something as a country.

"As far as we are concerned it is business as usual. The message is there's no change."

He said EDF will place 150 contracts in the UK and is looking for safety, quality and competitive prices.

Robert Davies, vice president of new builds at Areva UK, told the conference the company has already signed up 35 companies as suppliers in the UK and expects to start issuing purchase orders in 2011. Sheffield Forgemasters is a supplier to Areva.

Mr Davies told the Yorkshire Post: "The opportunity for UK companies is the high technology manufacturing area. You start with us and become a global supplier.

"The UK is the vanguard for the rest of Europe. No other country in Europe is ahead of the UK in having government and stakeholders all agreeing that nuclear power needs to be at the centre of energy policy."

Rolls-Royce believes that the world will see 300 new nuclear plants built over the next two decades. Andy Storer, civil nuclear project director, said this offers an opportunity for UK plc to prove itself and extend itself globally over the long-term.

He said Rolls-Royce plans to increase supply chain spending from 200m a year to 1bn a year and to increase the number of civil nuclear suppliers from 250 to 400.

But Mr Storer warned: "There is a supply chain elsewhere. It might not be big enough. It might not be good enough, but it will get used if you don't step up to the plate."

The 10bn turnover group is investing in three new civil nuclear factories – two in Derby and a third at a yet to be confirmed location. It expects the business to really get going in 2012.

"You have 18 months to get ready," said Mr Storer.

Powerful role in energy sector

Nuclear power generates more than 16 per cent of the world's electricity, according to the National Nuclear Laboratory.

The government-backed organisation counts 440 operating nuclear reactors across the globe. Rolls-Royce believes 300 will be built over the next 20 years.

Resource-hungry China has placed big orders with vendors, while the American Obama administration is displaying a more positive commitment to nuclear power, said NNL.

New plants are likely to be simplified with smaller footprints as investors look to reduce capital expenditure, although the industry stresses safety is the paramount consideration.

Nuclear is seen as attractive because it does not produce carbon emissions. However, there are environmental concerns surrounding nuclear waste.

But with present demand for energy – EDF estimates that we use 55 times more electricity than we need to survive – nuclear is a key component of current energy policies around the world.