Rolls-Royce is set to play a key role in the revival of Britain's nuclear industry after revealing plans to collaborate with EDF Energy on the construction of four new power plants.
Rolls-Royce will provide engineering and technical support to EDF under proposals agreed in a memorandum of understanding with the French utility group. Rolls will also supervise and manage the supply chain, which is likely to include hundreds of companies.
EDF is leading the expansion of Britain's nuclear industry after acquiring British Energy for £12.5bn last year. The company hailed Rolls as "one of the strongest engineering brands in the UK".
The tie-up has been announced following a similar agreement last December between Rolls and Areva, the French nuclear group which will design and manufacture the European Pressurised Reactors to be used EDF.
Rolls already develops reactors for Royal Navy nuclear submarines and wants to expanding its presence in the civil nuclear market. The FTSE 100 company revealed in July that it would launch a new UK facility to manufacture components for nuclear power plants.
Britain's nuclear programme is expected to sustain up to 15,000 jobs over the next 25 years with the overall civil nuclear market worth £30bn and expanding to £50bn within the next 15 years because of new projects.
EDF's four new reactors will be based at Hinkley Point in Somerset and Sizewell in Suffolk. The company plans to develop the sites by 2025, with the first operational by 2017.
Humphrey Cadoux-Hudson, the managing director of EDF's nuclear new build business, said: "As a country we face a significant energy challenge to keep the lights on, tackle climate change and maintain affordable prices.
"We believe the challenge can be met through greater energy efficiency and the generation of electricity from a diverse range of sources including nuclear and renewables.
"This agreement with Rolls-Royce is a welcome development in ensuring we achieve our new nuclear build plans.
"Their name is one of the strongest engineering brands in the UK and they have a lot of strength in the nuclear industry including a history of work for British Energy."
Rolls shares rose 11½, or 2.5pc, to 481½p following the announcement. The agreement, if completed, is likely to be financially significant for the company with each nuclear plant estimated to cost £2bn.
Lawrie Haynes, the president of Rolls-Royce Nuclear, said: "We are very pleased to be working with EDF Energy and this agreement is another step towards them delivery of our civil nuclear strategy.
"With the largest proven nuclear supply chain of any UK company Rolls-Royce is uniquely placed to deliver world-class engineering and manufacturing capability to support the delivery of nuclear power programmes both here and around the world."
EDF is leading the expansion of Britain's nuclear industry after acquiring British Energy for £12.5bn last year. The company hailed Rolls as "one of the strongest engineering brands in the UK".
The tie-up has been announced following a similar agreement last December between Rolls and Areva, the French nuclear group which will design and manufacture the European Pressurised Reactors to be used EDF.
Rolls already develops reactors for Royal Navy nuclear submarines and wants to expanding its presence in the civil nuclear market. The FTSE 100 company revealed in July that it would launch a new UK facility to manufacture components for nuclear power plants.
Britain's nuclear programme is expected to sustain up to 15,000 jobs over the next 25 years with the overall civil nuclear market worth £30bn and expanding to £50bn within the next 15 years because of new projects.
EDF's four new reactors will be based at Hinkley Point in Somerset and Sizewell in Suffolk. The company plans to develop the sites by 2025, with the first operational by 2017.
Humphrey Cadoux-Hudson, the managing director of EDF's nuclear new build business, said: "As a country we face a significant energy challenge to keep the lights on, tackle climate change and maintain affordable prices.
"We believe the challenge can be met through greater energy efficiency and the generation of electricity from a diverse range of sources including nuclear and renewables.
"This agreement with Rolls-Royce is a welcome development in ensuring we achieve our new nuclear build plans.
"Their name is one of the strongest engineering brands in the UK and they have a lot of strength in the nuclear industry including a history of work for British Energy."
Rolls shares rose 11½, or 2.5pc, to 481½p following the announcement. The agreement, if completed, is likely to be financially significant for the company with each nuclear plant estimated to cost £2bn.
Lawrie Haynes, the president of Rolls-Royce Nuclear, said: "We are very pleased to be working with EDF Energy and this agreement is another step towards them delivery of our civil nuclear strategy.
"With the largest proven nuclear supply chain of any UK company Rolls-Royce is uniquely placed to deliver world-class engineering and manufacturing capability to support the delivery of nuclear power programmes both here and around the world."
Source: The Daily Telegraph
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