The Confederation of British Industry (CBI) has called on ministers to build more nuclear power stations to help the UK reach its target of net-zero greenhouse gas emissions by 2050.
In a letter to the business secretary, Greg Clark, the CBI says it sees an “important role” for new nuclear power stations as part of a “diverse, low-carbon energy mix”.
In particular, the business group says it supports plans to build new nuclear power at the “right price and affordability” for consumers.
It also urges the government to explore different ways of financing nuclear power, including using the Regulated Asset Base model.
The letter also calls on the government to support the development of more small modular reactors (SMRs).
“We believe the such measures could encourage both foreign and domestic capital investment into new nuclear projects, which can help us meet the UK’s carbon reduction targets, while benefitting from the industrial and economic benefits of a domestic nuclear construction industry,” the letter states.
It also claims carbon capture, utilisation and storage (CCUS) technology will be a “necessity, not an option” and calls for it to be “scaled-up during the 2020s with infrastructure to match within the same timeline”.
The CBI letter comes days after EDF Energy revealedHinkley Point C has hit “J-Zero” – the completion of the base for the first reactor – meaning construction of the nuclear buildings above ground.
The second reactor is expected to hit its own J-Zero landmark in exactly a year’s time.
“Business is right behind the need for the UK to have a net-zero economy by 2050 and build on our global leadership in cutting greenhouse gas emissions,’ said the CBI’s chief economist, Rain Newton-Smith.
“To deliver the government’s admirable net-zero policy by 2050, it is mission critical that business, politicians and the public work together to devise and make the necessary changes.
“Firms want to see a whole host of stable, long-term policies enacted – from building new nuclear power stations to scaling-up carbon capture and storage technology and infrastructure – that send markets a robust signal: the UK is open for green business, and is a world leader in tackling climate change,” added Newton-Smith.
Commenting on the CBI letter, the chief executive of the Nuclear Industry Association, Tom Greatrex said the CBI “is right”.
“This week net-zero by 2050 became law, and Hinkley Point C completed the platform for its first reactor on schedule. We need to build on this momentum and deliver a programme of new nuclear power stations in the UK,” added Greatrex.
“This is a proven zero carbon technology that produces reliable, firm power supply and creates tens of thousands of highly skilled jobs across the UK. The forthcoming energy white paper is a great opportunity for the Government to place new nuclear at the heart of the decarbonised energy system we need to meet net zero.
“It is an opportunity that must be taken. Without new nuclear, the vision will be nothing more than hot air.”