Deal agreed for Government to buy county nuclear power station site
THE government has agreed a major deal to buy a nuclear power station site in Oldburyon-severn in Gloucestershire.
Chancellor Jeremy Hunt said the £160m agreement with Japanese technology giant Hitachi, which also includes the Wylfa site in Ynys Mon in Wales, was “critical” to the government’s plan for decarbonising the power sector.
Mr Hunt made the announcement in his Spring Budget to parliament on March 6.
It is believed the Oldbury site could be used as a location for small modular reactors (SMRS), which should be quicker and cheaper to construct than traditional nuclear power plants.
Plans for a multi-billion-pound nuclear plant in Wales were scrapped in 2020 after Hitachi failed to reach a funding agreement with the British government.
“We want nuclear to provide up to 25 per cent of UK electricity by 2050 and I want the UK to lead the global race in developing cutting-edge nuclear technologies,” Mr Hunt said.
The government’s roadmap for nuclear power includes building more plants in Britain, such as Hinkley Point C which is currently under construction in Somerset. Along with Hinkley and Sizewell C in Suffolk, the government has committed to a further largescale reactor project.
Government-owned Great British Nuclear will begin the next phase of the SMR selection process, with six companies having until June to submit their initial tender responses.
Ian Mean, Business West director for Gloucestershire and vice chair of GFIRSTLEP, said: “This is potentially very good news for Gloucestershire. The purchase of the former nuclear site at Oldbury could mean that it could be the home of the new Smrs-small nuclear power stations. If Oldbury is chosen it could mean thousands of skilled jobs.”
Johnathan Dudley, national head of manufacturing for accountancy firm Crowe UK, added: “I welcome the decision to seek initial tender responses by June this year but, now that we are free from EU constraints I would hope that Uk-owned and based companies are favoured, with the consequent knock on effect for our nuclear supply chain.”
Western Gateway - the pan-regional partnership for South Wales and Western England - has welcomed the £160m deal. The partnership published the Severn Edge Vision earlier this year and has been working with landowners and local authorities to promote investment in these sites.
Councillor Mark Hawthorne, leader of Gloucestershire County Council and vice-chair of the Western Gateway, added: “Our vision is of a site which can help develop new skills and clean energy jobs powered by a boost of investment into our communities. Severn Edge is ready to be seen as a world leader in new SMR technology and we look forward to working with the UK government and industry to deliver a greener fairer future.”