Hundreds of jobs put at risk after nuclear strategy rescue deal fails
Apprenticeship Special Celebrating the best in training Pages 38-43
HUNDREDS of jobs in Gloucester will be at risk after a deal to rescue Britain’s nuclear strategy collapsed.
A consultation process at Horizon Nuclear Power in Brockworth began on Monday, January 21, exploring staff roles at the firm which was set up to deliver two nuclear power stations.
It comes after Japanese firm Hitachi - which owns Horizon - said they needed more money to develop a £20billion nuclear power station in Anglesey and another in Oldbury on Severn.
But the UK Government refused to stump up more cash leading to a suspension of any further projects.
It means about 330 jobs in Gloucester are now at risk, while thousands more were to be involved in the construction and operation of the two nuclear reactors.
A spokesman from Horizon said that any resumption of a deal would not take place for at least 18 months.
Asked what the atmosphere was like at the centre, a spokesman said: “It’s exactly as you would expect it to be.
“We will enter into a period of consultation with our staff. During that time the exact findings will be finalised.”
Further details from that consultation will be decided in the coming weeks.
Horizon Nuclear Power was formed in 2009 to develop new nuclear power stations in the UK. It was acquired by Hitachi in November 2012.
The firm, based at Gloucester Business Park, would design the power station, oversee the construction and then operate the facility at Wylfa Newydd.
Both the Anglesey plant and the one at Oldbury on Severn would generate about 5,800MW of electricity, or about 10 per cent of the UK’S power consumption demands, the spokesman said.
Duncan Hawthorne, chief executive of Horizon Nuclear Power, said: “We have made very strong progress on all aspects of the project’s development, including the UK design of our tried and tested reactor, supply chain development and especially the building of a very capable organisation of talented and committed people.
“We have been in close discussions with the UK Government, in cooperation with the Government of Japan, on the financing and associated commercial arrangements for our project for some years now.
“I am sorry to say that despite the best efforts of everyone involved we’ve not been able to reach an agreement to the satisfaction of all concerned.
“As a result we will be suspending the development of the Wylfa Newydd project, as well as work related to Oldbury, until a solution can be found. In the meantime we will take steps to reduce our presence but keep the option to resume development in future.”
He said the staff have shown “extraordinary talent, resilience and determination to take this complex and exciting project to this stage”.
Gloucestershire’s representatives at Westminster said they are “disappointed” with the break down in negotiations.
Laurence Robertson, MP for Tewkesbury said: “At a time when our government, along with many other governments, is determined to reduce carbon emissions, thereby creating opportunities for nuclear power, I am disappointed that Hitachi has taken this decision.
“One of the problems, of course, is the enormous start-up costs of nuclear projects and it seems that Hitachi are becoming concerned about the amount of risk which they would be exposed to.
“The UK government had offered considerable help to Hitachi and Horizon in order to finesse this project and stand ready to continue to help.
He added: “My most immediate concern is for the jobs of the employees at the Horizon site at Brockworth.”
Gloucester MP Richard Graham believes projects such as these need to be “commercially viable”.
He said: “I’m sorry that Hitachi has pulled out of further work on the Angelesy Wylfa nuclear plant.
“Ultimately new nuclear is all about how the construction risk and pricing of energy generated is balanced against costs to the taxpayer.
“The government is right to try and pursue the best deal for the taxpayer, but such projects require huge investment and need to be commercially viable.”