atw 2017-07

atw Vol. 62 (2017) | Issue 7 ı July
442
INSIDE NUCLEAR WITH NUCNET
Nuclear Industry Calls on UK to Avoid
Disruption of ‘Disorderly’ Withdrawal
from Euratom
NucNet
The UK will need to set priorities for Brexit talks if it is to avoid disruption in the nuclear sector and the
possibility of a disorderly withdrawal from the Euratom Treaty affecting ambitious plans to build new nuclear
reactors, Tom Greatrex, chief executive of the London-based Nuclear Industry Association (NIA), said.
In an interview with NucNet, Mr Greatrex, a former Labour
MP and shadow energy minister, warned that a lack of
prioritisation in Brexit talks could lead to problems related
to moving nuclear-purpose components and difficulties
collaborating with counties in nuclear R&D projects with
significant economic, industrial and scientific impact.
“Any disruption to Euratom arrangements is undesirable
and could have a significant impact on the movement
of people and goods, scientific collaboration, nuclear
technology and reactor designs, and construction and
decommissioning”, he said.
The UK has confirmed that it will leave the Euratom
Treaty at the same time as it withdraws from the EU, by
29 March 2019. This means there are agreements which
will need to be put in place for areas that impact on nuclear
activities in the UK. It would be a mistake to think of
‘ Brexatom’ impacting just one particular area related to
nuclear in the UK, Mr Greatrex said.
The 1957 Euratom Treaty governs the peaceful use of
nuclear energy within the EU. Mr Greatrex said there might
be an argument for alternative agreements to be put in
place during the negotiation process. This might mean
Euratom inspectors would continue inspections on UK
installations whilst the transition happens. “This is a
sensible and pragmatic approach,” he said.
Mr Greatrex’s warning comes at the same time a report
by the House of Lords, Britain’s upper house of parliament,
warned that the government had left the UK nuclear
industry at risk and must act urgently to ensure its
continued operation post-Brexit. The report says
withdrawal from Euratom is an unfortunate, and perhaps
unforeseen, consequence of the prime minister's objective
of ending the jurisdiction of the European Court of Justice
in the UK. Ministers must end the uncertainty and resolve
the matter by securing alternative arrangements as
urgently as possible, the report adds.
In its official response to that report, the NIA said the
UK nuclear industry has made it crystal clear to the
government that it needs to be working on replacement
arrangements for Euratom and discussing a transitional
period now.
Mr Greatrex said the NIA has been saying for some time
that two years is a short period given the scope of the
agreements that need to be agreed between the UK and the
EU. This will be further complicated by external political
factors, such as elections in various EU countries.
Mr Greatrex said “a reality test” should be applied to
guarantee that procedures and agreements are finalised
rather than having hard-and-fast dates and then “nothing
to be there beyond those dates”.
He said: “Think about the components for existing
nuclear sites which need to be replaced or for new-build
projects. Most of those don’t come from the UK, but from
the EU, or will at least have to travel through the EU. All
these sectors in the UK will be impacted if we don’t have a
rational, logical and sensible conclusion to the Brexit
process.”
Mr Greatrex warned of the possible impact of a
“ disorderly” departure from Euratom on the UK’s plans to
build up to 16 GW of new nuclear capacity in the UK with
the first reactors online in the mid-2020s. This new
generation of nuclear power stations will require total
investment of at least £ 60 bn. The sites for new build are
Hinkley Point, Sizewell, Bradwell, Moorside, Wylffa Newydd
and Oldbury.
Construction at Hinkley Point C has begun with the
other projects at much earlier stages. But all of these will
be affected by any disorderly leaving of Euratom’
Mr ­Greatrex said. “As much as 64 % of the content for
Hinkley Point C is coming from the UK by value. That
means there is 36 % which isn’t. And some of that will
come from within the EU, some of it from outside the EU,
but all through cooperation agreements which partly refer
to Euratom.”
If, for example, some forgings come from Japan Steelworks,
there is an existing nuclear cooperation agreement
between Japan and the UK, but the agreement references
the safeguarding regime under Euratom. So the UK will
have to make sure it has something else in place to enable
that cooperation and trade to happen after Brexit.
Horizon’s project at Wylffa Newydd in north Wales will
be using US-designed GE Hitachi technology. Under US
law, there needs to be a nuclear cooperation agreement
in place before any trade or commercial activity can
happen in any US nuclear technology. “Having a nuclear
cooperation agreement between the US and UK will be
pretty important for that project,” Mr Greatrex said.
“None of this is impossible, but everything becomes
more complicated. Companies might have to go through a
process of export licence control regimes, or tariffs. And
there is no point in this, no benefit.”
Mr Greatrex’s comments echo those from the Brusselsbased
nuclear industry body Foratom, which said the UK
and the EU will need to agree transitional arrangements
that will apply if the two-year Brexit negotiation period is
not enough to prepare for the UK’s departure from
Euratom. “Being part of the Euratom community enables
new-build, decommissioning, R&D and other programmes
of work to continue without any disruption,” said Foratom
director-general Jean-Pol Poncelet.
Mr Greatrex also urged the UK government to find “a
nuanced approach” to making sure the free movement of
people with particular skills – including those needed by
the nuclear industry – is not affected by the withdrawal
Inside Nuclear with NucNet
Nuclear Industry Calls on UK to Avoid Disruption of ‘Disorderly’ Withdrawal from Euratom ı NucNet