Archived press release

Mox plant set to lose a fortune: Government report reveals

27 July 2001

BRITISH NUCLEAR FOLLY
Plutonium Plant To Lose Millions, Official Report Confirms

Following a legal challenge from Friends of the Earth, the Government today released a report effectively confirming that its mixed oxide fuel plant at Sellafield in Cumbria will lose hundreds of millions of pounds.

The report, prepared for the Government by consultants Arthur D Little, estimates that the 'net present value' of the plant only amounts to around £200 million. However, the plant's owner British Nuclear Fuels plc (BNFL) has already spent £460M on construction and other costs, therefore giving an effective loss of around £260M.

The plant was built by state-owned BNFL 4 years ago. But its operating licence has been withheld because of the significant lack of orders. BNFL has asked the Government to ignore construction costs when considering if the plant is justified under radiological protection law.

Environment Minister Michael Meacher commissioned the new study in April following the data falsification safety scandal last year which severely damaged customer confidence in BNFL. As a result of the scandal, Friends of the Earth understands there are still no orders signed with Japan, potentially the biggest of the client countries for MOX.

Mark Johnston, Friends of the Earth Nuclear Campaigner commented:

“Today's report confirms the plutonium plant will loose hundreds of millions of pounds. We consider it would be unlawful for the Government to give the plant the go-ahead,and it is a scandal it was ever built in the first place. Ministers must dismiss BNFL's application or risk further legal challenge. There needs to be an independent enquiry into why the Government's supervision of BNFL has failed so badly.

“There must also be a full debate about how to manage the legacy of long-lived radioactive wastes and in particular plutonium. It would be premature for the Government to authorise a dangerous and expensive process for plutonium waste management when other safer and less expensive options have not been explored.”

Contact: Mark Johnston 020 7566 1672 / 079 7331 9249
Press Office 020 7566 1649 (office)

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Published by Friends of the Earth Trust