RWE and E.ON join forces to build new nuclear in UK

Rival German utilities RWE and E.ON have teamed up to build at least four new nuclear power stations in Britain.

The joint venture, announced yesterday, adds impetus to Britain’s new nuclear programme bringing in a second major nuclear player to compete with French utility giant EDF which also plans to build at least four reactors.

"We welcome and support the UK's decision to expand its power generation by introducing a new generation of nuclear power stations," E.ON chief executive Wulf Bernotat said.

"We are pleased to be working with RWE, who we see as a skilled, experienced and reliable partner to develop new nuclear power in the UK."

The two German rivals have teamed up to spread the cost of the venture. Each new nuclear power station is expected to cost around £3.5bn to build.

Contractors are already circling in the hope of forging a deal to build the reactors. Balfour Beatty will be hoping the jv chooses Areva. Balfour Beatty clinched a deal in December last year to be Areva’s construction partner along with Vinci Construction.

E.ON and RWE said in a statement: “E.ON picked Areva and Siemens as partners to build new reactors in Britain in April 2008 but the new joint venture could also use other reactor builders.”

Likely sites for the jv include Wylfa in North Wales where RWE npower has grid connection rights for a 3.6 gigawatt nuclear plant and Oldbury in Gloucestershire where E.On has bought land bordering the existing nuclear power plant.