Nuclear deal lights up energy work prospects

The recent signing of a UK-US agreement to speed up the development of nuclear power stations in both countries has underlined the strong prospects for new work contracts in the sector.

Both building and civil engineering contractors stand to benefit from the Atlantic Partnership for Advanced Nuclear Energy, signed during President Trump’s visit last month.

By standardising safety and other regulatory requirements in both countries, it aims to halve the time that nuclear projects take to get approval to two years and usher in a new era of growth in the sector.

Meanwhile, Centrica has signed an agreement with US group X-Energy to build up to 12 smaller advanced modular reactors, which can operate at very high temperatures, at Hartlepool. Design works on the £300 million scheme are progressing (Project ID: 24098838).

At the same time, Rolls-Royce is working on a government-backed programme to develop the country’s first small modular nuclear reactors, which should also have potential in the US market.

The engineering group has made an application for reserved matters and awarded a contract on the £211 million Rolls-Royce Raynesway manufacturing and storage facility linked to the programme (pictured). Balfour Beatty is the main contractor on the scheme, which will involve a floor area of almost 185,000 sq m (Project ID: 23188701).

Reinforcing civil engineering activity

The new schemes will reinforce the flow of opportunities linked to nuclear construction projects, which are already underway. Indeed, work on Hinkley Point in Somerset and Sizewell C in Suffolk is helping to underpin the upturn in civil engineering activity, which is reflected in the latest Glenigan Construction Industry Forecast 2025-27.

After a 4% rise in the value of underlying civils sector starts this year, it is predicting a 12% increase next year and a further 2% growth in 2027.

At the £38 billion Sizewell C nuclear power station, which got the go-ahead earlier this year, tenders have recently been returned on a £70 million bus interchange and car park scheme where work is scheduled to start later this year (Project ID: 25174603).

Meanwhile, contracts have been awarded, and work is due to start next summer on a £40 million accommodation campus to house 2,400 workers at the nearby Suffolk village of Leiston (Project ID: 25260677).

At Hinkley Point C in Somerset, contracts have been awarded for a £26.8 million fish return system, which will involve tunnelling and dredging at a headwall location in the Bristol Channel. Work on the scheme is set to start later this year and run for 12 months (Project ID: 24285657).

In light of the government’s go-ahead for the 12 advanced nuclear reactors, Costain has been appointed as the construction manager on the £196 million HALEU Advanced Fuels Facility near Chester for Urenco UK. Work on the project is set to start next summer and is due to run for 64 months (Project ID: 24320886).

Long-term opportunities

Long-term, the new small-scale nuclear facilities will provide a promising source of new work. A preliminary design review has been completed on a £300 million micro nuclear power station at the former Llynfi Power Station near Bridgend, which will include associated infrastructure works and access roads (Project ID: 24295220).

The need to bolster research & skills linked to the nuclear sector is also set to create new work opportunities. Outline plans have been submitted by the Nuclear College for the Low Carbon SuperCluster, a £126.6 million privately funded R&D science and tech park across a 13.5-hectare site at Berkeley in Gloucestershire (Project ID: 24245204).