Following the Government’s decision to give its formal backing for a new generation of nuclear power stations in the UK, Business Editor Owen McAteer looks at how our region will benefit.

THE fact that North- East-based NOF Energy’s specialist nuclear advice line has taken calls from 90 companies in the past two months demonstrates how eager North-East firms are to become involved in the sector’s supply chain.

Earlier this year George Rafferty, chief executive of the business development organisation representing 300 UK organisations in the oil, gas and energy sectors, said the opportunities the nuclear sector will bring to regional businesses are huge.

He also called on the North- East supply chain to prepare itself for a “nuclear renaissance.”

His appeal followed the Government giving its formal backing to a new generation of nuclear power stations for the UK in January last year.

In the past two months, the pace has quickened with the Government’s announcement that ten sites, including Hartlepool, were in the first phase of nuclear new builds.

Mr Rafferty said: “That is a clear indication that things are moving and starting to move at a pace.

“The aim of the Government is to make this as smooth a passage as possible, so the first reactor can be onstream in 2017 to 2018.

“What we are saying to our members is that the first reactor is scheduled to come online in 2017 to 2018, but you can’t leave it to 2015 to get involved, you have to do it now and start preparing.

“That is just new build, there is also decommissioning and a third stream is maintenance and support.

“Those are three key streams that should present good business opportunities for firms here in the North- East.”

Mr Rafferty said a nuclear information line his organisation had set up, featuring a nuclear supply chain specialist, had received inquiries from 90 firms in the past six to eight weeks.

He said: “Firms have been asking how they set out their stall to get into the supply chain.”

There is little doubt when talking to Philip Vaughan that his company is taking the potential benefits of the nuclear new build programme very seriously.

Mr Vaughan, the nuclear business development manager for Tees Valley-based Darchem, pointed to millions of pounds of investment the company has made, including an extension and new equipment.

And, even more significantly, it has drawn up plans for a factory at its Stillington site, near Stockton, to be devoted entirely to nuclear fabrication work.

Mr Vaughan said: “We do have plans for a completely new factory and we have drawn up the outline plans. It might be someway off, but it would be a factory devoted to nuclear fabrications and we have already bought the land.

“The nuclear new build in this country has prompted us to look more closely at the overall nuclear position both in the UK and globally.

“It means, as far as we are concerned, there is more work we can obtain.

“If you consider what areas of growth there are for a firm in our position, the nuclear industry has to feature in the highest point.

“That is where all the activity is going to be in the future with all the nuclear power stations being built throughout the world.”

Darchem was, in the past, focused on nuclear and 70 per cent of its turnover was from the nuclear sector.

But there was a nuclear downturn after the completion of the Sizewell B power station, in Suffolk, and Darchem adapted its business by going down the aerospace route, which now makes up 60 per cent of its workload.

Despite the mixed reaction it received in the past, Mr Vaughan said that the importance of nuclear power was now being realised.

He said: “From the events and conferences I have attended, it seems anybody who is anybody in Government or in opposition is seeing that for us to be able to secure our power supplies for the future nuclear has to play a significant part.”

Mr Vaughan also believed the company’s experience in the sector would stand it in good stead.

Darchem, which employs 600 people at Stillington, has previously provided insulation and specialist fabrications for more than 140 nuclear power stations worldwide.

Mr Vaughan said: “It is competitive and we obviously would want to secure as much work as we can.

“You have to bear in mind that we used to be 70 per cent turnover for nuclear from our first push, so we are looking to be able to use that experience.

“Because Darchem benefits from having a very stable workforce we still have a core of people who worked on the fabrications for the nuclear industry the first time around.”

It is easy to understand why North-East companies would want to be involved in the nuclear sector.

It is estimated that by 2023 the global civil nuclear market will be worth approximately £50bn a year.

FIRMS in many fields are likely to benefit with Barrier Limited, a specialist surface protection coating firm based in Newcastle, another hoping to draw on past experience.

The company was formed in 1975 to paint structures to be installed as part of the growing North Sea oil industry.

However, it has previously operated in the nuclear sector and did all the paintwork at the Sizewell B Plant.

When work in the nuclear sector declined after 1993 it concentrated on its core business in the offshore, industrial, subsea, petrochemical and marine sectors.

But the company’s managing director, Robert Bowles, said with the announcement of the new nuclear build programme it was once again an important market for the company.

It has recently won a contract at the Sellafield site, in Cumbria, for painting scaffolding and providing fire protection coverings.

Mr Bowles said: “It is going to be very important in the future.

“We have been doing work in the subsea sector but the big area of growth in the future, the most obvious one, is nuclear.

“We painted the last nuclear power station, Sizewell B, and at the time it was 30 per cent of our turnover for four to five years.

“It had to be a very high standard, decontaminable and of a very high specification and we helped develop a system with one of the paint suppliers.”

The decline of interest in nuclear power saw work in the sector dry up.

Now things are starting to pick up again and Mr Bowles believed Barrier was perfectly placed to take advantage.

He said: “Fortunately, we have most of the key guys who worked on the Sizewell B project still working for us.

“What we have done is had a bit of a push at Sellafield and we have a couple of contracts over there.

“The same groupings at Sellafield will form the groupings for new work, so it is a case of getting our faces in front of the primary contractors.”

Mr Bowles believed there were at most half a dozen companies working in the same field in the UK and likely to be eight to ten nuclear new builds.

He said: “We would like to think we would get at least one of them. “I think one power station could account for 25 per cent of our turnover in the future, and we would w a n t to be pushing for more.

“After 16 years, we are coming back to it and we hope it works in our favour.

“It would give us four to five years work, so it is very significant getting one of these power stations.”

QA Weld Tech is a company looking to move into nuclear for the first time.

The company, based in Middlesbrough since 1980, uses advanced welding and fabrication techniques in the oil and gas, petrochemical, power generation and iron and steel industries.

But managing director Charles Tighe believes its practices would transfer seamlessly into the nuclear sector.

He said: “With the management systems, training and skills we have from the oil and gas industry we have to look at where we grow our business next and, for me, nuclear is an obvious one.

“With the skills we have there would be the need for some induction training in moving to nuclear, but not grass-root training. The opportunity is there for us and we have to position ourselves to make use of that opportunity.

“The first thing we are doing is a strategic review. We don’t want to walk away from the opportunities in oil and gas and I am convinced there is a synergy between the two.

“We need to structure the business so there are people who can spend some time developing the networks for nuclear opportunities.

“I think it an exciting opportunity.”

HUGE OPPORTUNITIES: George Rafferty, chief executive of NOF Energy, the business development organisation representing 300 UK organisations in the oil, gas and energy sectors I think one power station could account for 25 per cent of our turnover, and we would want to be pushing for more. After 16 years, we are coming back to it Managing director of Barrier, Robert Bowles, left ‘ HAS PLANS: Philip Vaughan, nuclear business development manager for Billingham-based Darchem The aim of the Government is to make this as smooth a passage as possible, so the first reactor can be onstream in 2017 to 2018. What we are saying to our members is that the first reactor is scheduled to come online in 2017 to 2018, but you can’t leave it to 2015 to get involved, you have to do it now and start preparing George Rafferty ‘ The power behind the future?

NUCLEAR power is power (generally electrical) produced from controlled (ie, non-explosive) nuclear reactions.

Commercial plants in use to date use nuclear fission reactions. Electric utility reactors heat water to produce steam, which is then used to generate electricity.

In 2007, 14 per cent of the world’s electricity came from nuclear power, despite concerns about safety and radioactive waste management.

More than 150 naval vessels using nuclear propulsion have been built.

With the management systems, training and skills we have from the oil and gas industry we have to look at where we grow our business next and, for me, nuclear is an obvious one. I think it is an exciting opportunity."