UPDATE:Horizon Inks Early Work Deal With Nuclear Reactor Vendors

2nd Aug 2010 15:02

(Adds detail.) By Selina Williams Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K. nuclear joint venture Horizon Nuclear Power Ltd. Monday said it has signed contracts for preliminary work on a proposed new nuclear power station in Wales with France's Areva SA (CEI.FR) and Toshiba Corp. (6502.TO) unit Westinghouse Electric Co.'s Nuclear Power Delivery U.K. The preliminary work will be carried out between now and the end of the year with the two reactor vendors, which are currently being assessed for new U.K. nuclear reactor licenses, and is part of preparatory design studies for the proposed power station. "We are already working with both companies in a formal procurement process regarding our preferred vendor. Progressing with some studies now, for both designs, will support our planning and licensing process by allowing us to develop the site specific designs, and make us a more informed buyer," said Horizon Chief Operating Officer Alan Raymant. "It will also drive more competitive bids, which ultimately will be good for the consumer, keeping the price of energy down," Raymant added. In March, Horizon--a joint venture between German utilities RWE AG (RWE.XE) and E.ON AG (EOAN.XE)--said it would build its first nuclear reactor at Wylfa on the Isle of Anglesey given the right market conditions and subject to a final investment decision. It said it would select a preferred reactor vendor around the end of the year and aims to be generating power at Wylfa by 2020. Horizon is the third nuclear group to outline its plans for the U.K. and comes as the government pushes for a new fleet of reactors to replace aging nuclear and coal-fired power plants that are due to be retired over the next decade. Electricite de France SA (EDF.FR) is leading the nuclear revival in the U.K. and has said it plans to have the first of four new nuclear power plants in the country operational in 2018. A consortium comprising Iberdrola SA (IBE.MC), GDF Suez SA (GSZ.FR) and Scottish and Southern Energy PLC (SSE.LN) have also formed to build new nuclear power stations in the U.K. on land acquired by the companies. Horizon aims to deliver a total of around 6 gigawatts of new nuclear capacity from two power stations in the U.K. by 2025, representing an investment of around GBP15 billion. The power plants could supply the energy needs of a city the size of Greater London. Nuclear Power Delivery U.K. comprises Westinghouse Electric Co., Shaw Group Inc. (SHAW), Laing O'Rourke Group and Toshiba. -By Selina Williams, Dow Jones Newswires; +44 207 842 9262; [email protected] (END) Dow Jones Newswires August 02, 2010 10:02 ET (14:02 GMT)