[Update]Nuclear plant supplier Cavendish Nuclear, a subsidiary of Babcock International Group, said it had signed two major agreements with EDF Energy for support services for seven Advanced Gas-Cooled Reactor stations in Britain. The deals are set up as “lifetime” contracts, which extends arrangements already in place for the operational time-lines of the power plants in question. If the plants keep ticking, the deals remain viable.
The value of the contracts is about $60.75 million annually.
The first deal is termed a Lifetime Enterprise Agreement. This means “Cavendish Nuclear will continue to provide fuel route and other services to EDF Energy's seven AGR stations for the remainder of their operating lives,” the company said in a statement, noting it also covered services to EDF Energy's Pressurized Water Reactor over the same period.
Cavendish estimates the deals will be in effect for about 16 years. The company also said the deal supported about 400 jobs and allowed it to plan for the future by securing work for current and future “graduate trainees and apprentices.”
It also means operational security for power plants that provide Britain with about a sixth of its electricity.
Cavendish Nuclear has provided specialist nuclear services to the AGR fleet since operations first commenced in 1976. They also supported the construction of EDF Energy’s PWR at Sizewell B, and maintain an on-site team to support its ongoing operation.
The second deal signed is called the EDF Energy Strategic Partnership for Lifetime Interface Agreement. In 2010, EDF Energy invited their key strategic partners to form the Strategic Partnership for Lifetime, which focuses on support for AGR lifetime extensions when they are compatible with EDF Energy’s business objectives.