UK Liberals pursue anti-nuclear agenda
Chris Huhne, the UK Energy & Climate Minister, and his political allies are not to be trusted. Last month Huhne said his only concern about the development of new nuclear reactors in the UK was that there be no public subsidy. This week the new Business Minister from the Liberal Party squashed a key government loan for {L}80 million to Sheffield Forgemasters which would have given the UK a 15,000 tonne press to manufacture major components for new reactors.
It seems the Liberals have forgoton about national competitiveness in the mix. The press would have unhooked the UK from reliance on Asian foundries. The Sheffield deal is a crucial element of the supply chain for new reactors to be built at 11 sites around the UK.
Vince Cable, who is a senior members of the new government, told Reuters June 3 the loan lacked due diligence. He alleged the deal was put in place ”in a hurry,” and needs to be reviewed for its impact on the country’s deficit.
Since the deal is a loan, and not spending, it is hard to see how the Liberals can call the agreement a contributor to the deficit. Pat McFadden, a Labour spokesman, told Reuters the deal “ was not agreed to in a hurry.”
The plan by the prior UK government to give the loan to Sheffield also included a commitment for an equity stake by Westinghouse which would have limited the government’s financial exposure. Cable’s claim of a lack of due diligence may come as a surprise to Westinghouse which according to the Financial Times was planning to invest “tens of millions” in the Sheffield Forge.
In reality the justification for cancelling the loan is driven by the Liberal Party’s political platform which states,
[We] Reject a new generation of nuclear power stations “based on the evidence nuclear is a far more expensive way of reducing carbon emissions than promoting energy conservation and renewable energy”.
Japan Steel Works gains market share
Meanwhile, Japan Steel Works told the Bloomberg wire service June 1 it is on tap to sell components for 26 new reactors worldwide in the next three years. A spokesman for the firm told Bloomberg sales will double next year from six reactor pressure vessels to 11 due to expansion of manufacturing capacity. The company’s dominant position in manufacturing large reactor components is aided by government loans.
World Nuclear News reported March 17 that other countries with plans to build large forgings facilities include Doosan in Korea, OMZ Izahora in Russia, two Indian firms – Bharat Heavy and Larsen & Toubro; and Shanghai Electric in China.
In the U.S. there are no plans on the immediate horizon to build a large forgings plants. However, Areva and Westinghouse are investing in nuclear component manufacturing centers in the U.S. which will also serve export markets.
# # #
