Exploring the role of nuclear in the energy mix
Posted on 11 September 2023

Hosted by the Nuclear Industry Association (NIA), Nuclear Week in Parliament, which takes place from September 11 to 13, will put the spotlight on nuclear – and provide the opportunity for the sector to engage with Parliamentarians.
Ahead of Nuclear Week in Parliament, we spoke to Tom Greatrex, CEO of the NIA, on the continuing importance of the nuclear industry as part of a balanced energy mix to achieve energy security and net zero.
Why does nuclear remain an important part of the energy mix?
We need nuclear to ensure our energy security and create a net zero world where our people have good, well-paying jobs to make the transition worthwhile.
Nuclear helps solve energy security, net zero and levelling up all together: Energy security because nuclear provides reliable, British power to replace imported gas (Hinkley Point C will prevent 5 billion cubic metres of gas imports per year), Net Zero because nuclear provides continuous, reliable, clean power to cut carbon (nuclear has the lowest lifecycle carbon use of any electricity technology), and Levelling Up, because nuclear provides skilled, stable, well-paying, organised work, especially for communities in coastal Britain and other places that really need them (station wages are regularly two to three times the average of the rest of the towns nearby).
From a technology perspective, nuclear is our only source of electricity that is clean, non-weather dependent, and British. You cannot replace nuclear. You need something that is a stable, predictable, continuous source of generation to make the electricity system work.
And like renewables, nuclear is green. According to a United Nations Economic Commission for Europe (UNECE) report, nuclear has the lowest lifecycle carbon intensity of any electricity source at 5.1g-6.4g/kWh, the lowest land use of any electricity source, the lowest impact on ecosystems of any electricity source and the lowest mineral and metal use of any clean electricity source.
What are the opportunities in nuclear… and where are the key opportunities in the UK?
From an economic perspective, nuclear is the most jobs-rich form of green energy. Nuclear stations require a continuous, onshore workforce to maintain and operate them and nuclear technology is the most sophisticated of the green technologies, so it requires the highest level of skills development to execute.
In 2021 the UK’s civil nuclear sector generated £6.1 billion in GDP for the UK economy. When the indirect impact of the sector’s activity is considered, this figure more than doubles to £16.1 billion. The civil nuclear sector is a vital job creator: more than 70,000 people are directly employed and over 200,000 jobs are reliant in some way on its activities. That is from 5.9 GW of operational nuclear, with 3.2 GW under construction.
Hinkley Point C, those 3.2 GW under construction, employs close to 9000 people on site now, and about 22,000 people across the country in some way are working on the project. If we build 20 GW more of new nuclear, you can see how many jobs that might create. With a permanent 24 GW presence, rather than 5.9 GW, you would be looking at around 200,000 or more direct jobs, and a value added of close to £20 billion per year.
It is also worth noting that all nuclear power stations and new build sites are in coastal Britain, the poorest part of the country. They drive much needed investment and job creation in these areas.
Where are the opportunities globally… and what are the priority markets?
Nuclear fuel presents the UK a historic opportunity to expand exports, bolster allies’ energy security and cut Kremlin revenues. Russia exports billions of dollars of uranium conversion, enrichment, and fuel fabrication services every year, including to our allies in the United States, France, South Korea, Japan, and countries across Eastern Europe. Russia exported $1.2 billion in enriched uranium to the United States and France alone in 2022. The UK is uniquely placed to capture the Russians’ market share because we have room to add extra uranium conversion at Springfields in Lancashire and enrichment capacity at Capenhurst in Cheshire. France and the United States also are planning for capacity expansions, but only with extra British capacity can we close the gap. The export opportunity today is worth several hundred million dollars per year for decades, as nuclear reactors are expected to operate for at least 60 years.
There is also the potential for the deployment and export of domestic small modular reactors (SMRs), such as the Rolls-Royce SMR, to generate billions of pounds in export earnings and create another viable Western reactor to displace Russian exports. At present, the Russians are the leading exporter of nuclear reactors worldwide, earning billions of dollars through contracts to build, finance and service nuclear plants for developing countries.
Lastly, the UK has amongst the most advanced capabilities and expertise in nuclear decommissioning and radioactive waste management. This is another source of potential export earnings if the Government allows UK companies to import waste from other countries for treatment in the UK, especially where it has no material impact.
What are the timescales for opportunities in the UK nuclear sector?
Above all, project certainty is what drives opportunities for the sector. Between now and 2050 we expect a huge ramp up in activity across all parts of the sector, with opportunities in new build with Hinkley Point C, followed by Sizewell C, which we hope will get Final Investment Decision in 2024 and from the Government’s SMR competition, which Great British Nuclear is leading on, with a FID targeted by the close of the decade.
SMRs – smaller versions of conventional stations – represent a huge and exciting opportunity for the sector, with companies like Rolls-Royce SMR, GE Hitachi, X-energy and Holtec just some of the companies hoping to make an impact.
And as the last of the legacy stations, like Hartlepool and Heysham, come offline over the next few years after several decades of reliable service, there will be opportunities too for those in decommissioning to ensure the UK maintains its world class status in that field.
Britain also has an important leadership role in the global nuclear fuel industry. The Government’s Nuclear Fuel Fund, which will enable eight projects to develop new fuel production and manufacturing capabilities, will bolster those world-class capabilities that make us uniquely placed to help our allies replace Russian supplies with Western nuclear fuel.
What are the key challenges for the nuclear sector?
By 2050, the target is for nuclear power to be providing a quarter of the UK’s electricity needs, a big jump from the 15% or so we get today – and at a time where overall demand for power is likely to be higher. It will no doubt be challenging, but the nuclear sector stands ready to get the job done.
We have to start with a focus on building new fleets of large and small scale stations – big GW plants and SMRs – not one or the other, not one at a time, but together, all at once, and as soon as possible. Not only does it make the most sense financially, but it will also reinvigorate the supply chain and create good, green jobs in areas that need them most.
To build stations we need people and the UK has a shortage of workers with the right skills needed for that. The wages are very, very good on nuclear projects, so there are huge opportunities to train our young people up to get jobs like this.
What do clients such as EDF UK want from the supply chain in the nuclear sector?
The sector needs a supply chain that is robust, meets all the required needs with a world-class understanding.
The UK has a world-class nuclear supply chain. Our members make up the bulk of that supply chain, from a wide range of international, national and local firms. All play vital roles in the sector, particularly for those building new stations. EDF UK, who are building Hinkley Point C, the first nuclear power station to be built here for 20 years, has 3000 British businesses as part of the supply chain and the project continues to unlock a multi-billion pound opportunity for growth and development across the country.
How does nuclear fit into the energy transition?
All credible modelling shows that you need nuclear as part of a robust, clean energy mix to get to net zero. What that modelling shows is the intuitive truth that you need something that generates continuously and predictably, at all times, and in all conditions.
All the models show that you need nuclear for net zero, including the Climate Change Committee, IEA, IPCC and OECD.
How do we create more efficient and smarter supply chains for the future nuclear industry?
With the recent formation of Great British Nuclear and the Nuclear Skills Taskforce, along with longstanding industry bodies like the Nuclear Advanced Manufacturing Research Centre and its Fit For Nuclear programme, there is a desire to ensure the UK’s nuclear supply chain continues to evolve and improve so it can raise quality and productivity, reduce costs and develop new capabilities and skills.
The Taskforce has been designed to address how the UK continues to build skills across the workforce, setting set up the sector for future success, supporting industry to build a long-term and sustainable pipeline of skills to meet the government’s and industry’s nuclear ambition.
What role does The NIA play with regard to nuclear and energy transition?
As the voice of the UK’s civil nuclear sector, we support our members to thrive in a growing industry. We represent more than 280 companies across the supply chain and we work to ensure the sector has everything it needs to thrive and grow, through the events we hold, key reports we produce and the politicians and members of the press we interact with.
Nuclear in the UK is witnessing somewhat of a renaissance, with real momentum building though new policy commitments from government, a new arms-length body in Great British Nuclear and an industry ready to step up to deliver.
For more information on the Nuclear Industry Association, click here.
Nuclear Week in Parliament runs from September 11 to 13, for more information, click here.
NOF is hosting a Networking Lunch with EDF UK in association with the Nuclear Industry Association at Ramside Hall Hotel on September 26. The event, which also features The Nuclear Advanced Manufacturing Research Centre, will focus on nuclear projects and supply chain opportunities. For more information and to book, click here.