THE ENERGY INDUSTRY TIMES - AUGUST 2017 Europe News 7 on Hinkley cost rises The admission by EDF that construction costs of the Hinkley Point C nuclear power plant in the UK will rise, and that delays are also likely, has led to further criticism of the project. EDF said last month that a review of the costs and timetable for the project – set to be the first new nuclear plant in the UK for two decades – indicated that project completion costs are now estimated at £19.6 billion, a £1.5 billion increase over previous evaluations. It also said that the risk of deferral of delivery is estimated at 15 months for the first unit, and nine months for unit 2. Separately, government figures have shown that consumers will be burdened with a higher bill than previously estimated for supporting Hinkley Point C. EDF signed a contract for difference (CFD) with the UK government for Hinkley in 2013, guaranteeing that the plant would earn a minimum of £92.5/ MWh for energy generated for 35 years. Because of falling wholesale energy prices, it is now estimated that households could end up shouldering a £50 billion bill for the contract, more than eight times the 2013 estimate. The latest data on the plant comes just a few weeks after the UK’s National Critics jump Audit Office (NAO), a spending watchdog, said that the deal for Hinkley struck between EDF and the UK government was “risky and expensive”, and that the project would provide “uncertain strategic and economic benefits”. Critics of the scheme have called for the government to put a stop to the project – and the UK’s other planned new nuclear power plants – and invest in alternative energy technologies. “Some may think nuclear is too big to fail, but no one can credibly say that Hinkley, or indeed other nuclear power plants, should go ahead without serious, public re-evaluation,” said Nina Schrank, energy campaigner at Greenpeace UK. “Long before Hinkley is even finished, offshore wind will be producing far cheaper and safer power. The nuclear new build programme should be halted for better alternatives that will meet our energy needs and provide jobs in the regions.” However the government maintains that nuclear energy is required in the UK to help keep the lights on while reducing carbon emissions, and has pointed out that the CFD strike price awarded to Hinkley is in line with other low-carbon power plant deals. The government says it is also continuing negotiations with Horizon and NuGen, which are planning new reactor construction projects in North Wales, Gloucestershire and Cumbria. At the end of June, Korean firm Kepco confirmed that it is in talks with Toshiba over the purchase of a stake in NuGen’s proposed Moorside nuclear power project in Cumbria. Toshiba’s financial difficulties have cast doubt over the viability of the 3.8 GW Moorside project and NuGen announced in May that it was seeking strategic investors to enable it to keep the project afloat. Kepco is seen as a likely partner in the project, but will want to use its own reactor technology at the site, rather than that of Westinghouse, Toshiba’s bankrupt US subsidiary. n Construction costs rise, delays likely n Kepco in Moorside talks Dong moves ahead with Asnaes conversion Dong Energy is moving ahead with plans to convert a coal fired power plant in Denmark to biomass firing after concluding heat and power supply agreements with customers. The utility is to convert the Asnaes power station near Kalundborg – one of the largest power plants in the country – to fire on wood chips from late 2019 onwards. It will sell steam, district heating and power to customers including Novo Nordisk, Novozymes and utility Kalundborg Forsyning, for 20 years, it said. Dong announced in February 2017 that it would no longer use coal at any of its power stations beyond 2023. It has already reduced the use of the fossil fuel by 73 per cent since 2006 through co-firing at some of its plants and carrying out full conversions at others. Conversion of the Asnaes plant will start in the coming weeks and Dong has selected Finland-based Valmet to supply the biomass plant, it said. Asnaes power station currently has two coal-fuelled units – Unit 2 with a capacity of 142 MW power and 193 MWth district heating and process steam, and Unit 5 with a capacity of 640 MW power and 308 MWth district heating and process steam. The conversion from coal to wood chips at Asnæs will result in an annual reduction in CO2 emissions of around 800 000 tonnes. Pharmaceutical firm Novo Nordisk said that the deal with Dong would enable its Kalundborg production unit to become carbon neutral.
Energy Industry Times July 2017
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