Great British Nuclear delays decision on mini-nuke sites

GREAT British Nuclear (GBN) has delayed a decision on where the first mini-nuclear reactors will be built until after the next election, after concerns that losers of a design contest may otherwise threaten to sue.

The public body, which is tasked with preparing the ground for a “nuclear renaissance” previously said it would select small modular reactor (SMR) designs for public support by the spring and award contracts for development by the summer.

But in Wednesday’s Budget, it emerged the selection has now been pushed back to June at the very earliest.

It means there is almost no chance contracts will be awarded before the next general election.

The decision to slow the pace of GBN’S design competition was taken amid fears that rushing the process would leave the outcome exposed to legal challenge, via judicial review, Telegraph understands. It is also thought more time was requested by some of the bidders.

Six companies have been shortlisted, including Rolls-royce, EDF, Gehitachi, Holtec, Nuscale and Westinghouse.

The setback is the latest delay to the SMR design competition, which was first announced by former chancellor George Osborne in 2015.

In recent weeks, Tufan Erginbilgiç, chief executive of Rolls, which is seen as the frontrunner, warned that his company could build its first minireactor in Europe if ministers failed to speed up decision-making. On Friday, Lincoln Hill, director of policy at the Nuclear Industry Association, called for the design competition process to be concluded “as quickly as possible”.

He added: “We do want that to happen before the next election, because otherwise the process will take longer and it is crucial that we don’t lose time.

“Other countries around the world are already moving forward on nuclear and we don’t want the UK to be left behind.

“We know the Government shares that ambition and we would all like to see it carried through, as there is still a lot of work to be done and supply chains to be created.”

It comes after GBN also announced it had agreed terms to buy the nuclear sites Wylfa, on Anglesey, and Oldbury, near the River Severn, for £160m.

Industry insiders regard Wylfa as the best undeveloped nuclear site in Europe.