The UK government has announced the £70 million sale of land near the Sellafield nuclear complex to a European consortium.
The Nuclear Decommissioning Authority (NDA) said the 190-hectare site to the north of the existing nuclear site at Sellafield in Cumbria, north-west England, has been sold to a consortium comprising Spanish energy firm Iberdrola, FranceÔÇÖs GDF Suez and Scottish and Southern Energy (SSE).
The group has said it plans to use the site to build a new nuclear power station with the capacity to produce up to 3.6 gigawattsÔÇöenough to provide the power needs for 3.5 million homesÔÇöwith construction due to start in 2015, subject to planning permission.
The consortium will pay £19.5 million up front to the NDA, followed by a subsequent payment of at least £50.5 million within the next six years.
Sellafield was the location of the worldÔÇÖs first commercial nuclear power plant, which opened in 1956.
GDF Suez and Iberdrola each have a 37.5 per cent stake in the consortium, while SSE holds the remaining 25 per cent.
Commenting on the acquisition, Alistair Phillips-Davies, Energy Supply director at SSE, said: ÔÇ£Nuclear power is a tried and tested way of generating power that can help meet energy security and climate change objectives which we support.┬á
ÔÇ£In line with our commitment to a diverse generation portfolio, we believe that some participation in new nuclear power stations makes sense and complements our core investment in renewable energy.ÔÇØ
Paul Rorive, senior VP of the Nuclear Activities Division of GDF Suez, added: ÔÇ£For GDF Suez, which has 45 years of involvement in the nuclear industry, the acquisition of the Sellafield site confirms the ambition to play a major role in the nuclear revival in the world in order to tackle the new energy and environmental challenges.ÔÇØ
The UK is currently on a major drive to renew its ageing nuclear power stations in an effort to improve its energy security and cut carbon emissions.
The consortium is the third to have acquired sites suitable for new reactors in recent times. Earlier this year, German firms RWE npower and E.ON acquired three areas of land from the NDA near existing nuclear reactors for almost £400 million, and are seeking to provide six gigawatts of new nuclear capacity in the UK by 2025.
Last year, EDF Energy bought nuclear generator British Energy along with its associated sites, and plans to construct the UKÔÇÖs first new nuclear power plant by 2017.
The Sellafield site has high levels of contamination and is in fact EuropeÔÇÖs most contaminated industrial site.
Unions have welcomed the deal, saying it will provide a much-needed boost to the areaÔÇÖs economy. Around 10,000 people are currently employed at the Sellafield site.
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