Hinkley Point C and Milsted Langdon

Hinkley Point C represents a multi-billion pound investment by EDF Energy over the next decade, centred around the construction of a 3,200MW two reactor nuclear power station near Bridgwater, Somerset.

In March 2013, the Secretary of State for Energy and Climate Change granted a development consent order to EDF Energy to build and operate Hinkley Point C and associated developments.

EDF Energy has nominated an area of land next to the existing Hinkley Point nuclear power stations for the development of Hinkley Point C. The two proposed reactors will be capable of supplying electricity to around five million homes.

Approximately one-third of the investment is planned for the nuclear reactor island, with the remaining two-thirds required for associated construction and civil engineering works, as well as aligned activity such as business services. The project is expected to provide around 700 permanent and 200 contract positions for more than 60 years, as well as work for thousands of people directly and indirectly during the construction period.

Local supply chain

As part of its procurement strategy for Hinkley Point C, EDF Energy has partnered with the Somerset Chamber of Commerce to identify and support local businesses that want to become part of the supply chain.

The Somerset Chamber is the first point of contact for local business and agencies wishing to engage in the construction of this proposed nuclear new build project. Businesses can register at: www.hinkleysupplychain.co.uk

What opportunities are there?

There are major opportunities for local companies to become part of the Hinkley supply chain. Some may be large, or could have more diverse requirements than a single supplier can handle on their own.

A number of work packages have been identified by EDF Energy as having potential for local supplier delivery, but are likely to require collaboration due to their scope and scale. Supplier groups, led by a core team of local suppliers, are in the process of being formed.  The supplier groups which have currently been identified include catering, temporary office fit out, bus services, infrastructure management, facilities management, hotel services and accommodation booking services and waste management.

Later this year, further work package requirements will be brought into focus which is likely to include marine management, freight and logistics management, fleet management and reprographics.

In considering the viability of any significant tender or proposal, understanding the financial impact on your business is critical, including funding requirements, cash flow projections and pricing.

Milsted Langdon has first class links with the key contacts at Somerset Chamber and EDF and has years’ of experience in working with clients to put together successful tenders, including financial analysis, modelling and structuring joint ventures from both a commercial and tax perspective, to ensure that our clients make the most of this major opportunity.

Is there anything else I can do?

Somerset Chamber has organised a series of interactive workshops called ‘Raising your Game’, and are actively helping local businesses take positive action to improve their chances of securing contracts linked to the Hinkley Point C development.

In order to successfully win business and become part of the Hinkley Point C supply chain, companies will need to convince the EDF Energy procurement teams and the main Tier 1 and 2 contractors that not only do they have the capacity and skills to take on the extra work, but also that they can be trusted to deliver to the same high standards every time.

Being involved in the development of Hinkley Point C could have a major effect on your company. If you’d like to talk to an expert about the financial implications, please contact either Nigel Fry at: nfry@milsted-langdon.co.uk or Rob Chedzoy at: rchedzoy@milsted-langdon.co.uk