8 March 2010 - Lord Hunt speech - Nuclear conference, Paris

Good morning and thanks to the French Government and the OECD, the IAEA for their hospitality and the warm welcome to this important conference.
So I’m grateful to have the opportunity to talk to you about the UK’s new civil nuclear programme which we launched in 2008.
We are convinced that nuclear energy offers significant benefits all round. From getting to a low carbon society to developing cutting edge technologies and creating a skilled workforce.
The low carbon vision
The 2008 Climate Change Act made the UK the first country in the world to set legally binding “carbon budgets”.
These five year budgets commit the UK to cut its emissions by 34 per cent by 2020 and 80 per cent by 2050, through investment in energy efficiency and clean energy technology. Already on emissions we are down by over 20 per cent - double our Kyoto target.
We are promoting energy efficiency in homes transport and business. On the supply side we are promoting diversity of low carbon sources, through renewables, carbon capture and storage technology and nuclear energy.
So nuclear, has a crucial role to play in achieving our low carbon future and securing our future energy security.
The UK Government is working very hard to create the right conditions in the UK for investment in new nuclear power stations.
And already energy companies have announced plans to build up to16 GW of new nuclear power by 2025. We expect the first plant to be operational in 2018.
And to support these changes, we are building an electricity grid with larger capacity and the ability to manage greater fluctuations in electricity demand and supply.
France and the UK are two countries with a rich nuclear heritage, who are today supporting and learning from each other. There have been many exchanges between France and the UK regarding decommissioning of graphite reactors and sodium cooled reactors. Also on geological disposal. And not forgetting that we are working with the CEA with a view to entering an agreement on research in relation to reactor decommissioning.
Skills
Then there is the Skills Agenda. we know the necessity of investing in our nuclear workforce and I applaud the creation in France of a Masters in Nuclear Energy, open to International students. The President spoke of this earlier today.
In the UK, we launched a National Skills Academy for Nuclear and we have invested over £3 million so far. The Academy was set up jointly with employers to address the gap in skills on challenges like; fuel cycle, waste management, decommissioning, and now new build.
Just as the re-emergence of nuclear power in the UK offers great career opportunities for thousands of workers. So, too, for a UK supply chain.
Supply Chain
The global nuclear renaissance provides a multi billion pound opportunity for those industries involved in the supply of goods and services; required for the construction, operation and maintenance, and decommissioning of nuclear power stations.
One of our primary objectives is to help create a globally competitive UK nuclear supply chain, focusing on value for money.
And our plans to build up to 16 GW of new nuclear capacity has a market value of roughly £30 billion.
We are always looking at ways to help business in the UK to make the most of the opportunities available in the global civil nuclear industry.
And the UK government, will see to it, that any “pinch points” in the global supply chain, do not lead to delays in new nuclear build.
But just as we see enormous benefits in civil nuclear power we should acknowledge the worry that some countries could try to use it as a cover to develop a weapons programme.
And we stand united in the fundamental belief that all countries should have the right to the peaceful use of nuclear energy under the non-proliferation treaty.
Nuclear Fuels Assurances (NFA)
This is where the stability of the international market for fuel becomes so important.
Indeed we have reached a crossroads regarding the supply of nuclear fuel with the growth of civil nuclear power generation globally.
A number of states have expressed their intention to introduce or expand existing civilian nuclear power programmes. Uninterrupted access to fuel is vital if they are going to invest in new or expanded nuclear programmes.
So several suggestions have been put forward to the including the UK’s own Nuclear Fuel Assurance (NFA) proposal.
The model agreement we are drafting, with advice from the IAEA, can be adapted to fit other supplier states export control legislation. And this proposal will not be exclusive to the UK.
It will give confidence to recipient states, that their contracts to receive enriched nuclear fuel, will not be interrupted for ‘political’ ends by other supplier states.
The NFA, I hope, is enough to reassure emerging and developing nuclear states that fuel will be readily available to them; without the need to develop costly and complex indigenous enrichment programmes.
It is our intention to present the final NFA proposal to the IAEA Board of Governors for approval in the coming year. As soon as we are satisfied that we have the right support from potential recipient countries.
New nuclear is important for the UK and the world in terms of securing a secure and safe energy future.
This nuclear renaissance is a challenge that requires investment, innovation and integration on a scale never before seen.
But the imperative of creating a low carbon future means that we must rise to that challenge.
This conference means an important step towards that.
Thank you.


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