Political Tensions Threaten UK Nuclear Plans

Global fuel wars could undermine Britain's plans to expand its nuclear power industry, warns risk advisor and consultancy firm AON.

Key challenges to the UK's nuclear plans include political risks which could hamper the delivery of key nuclear fuel uranium or 'yellow cake', mainly exported from Australia, where it is enriched to become nuclear fuel.

"Coupled with battles over water shortages, fuel supply will be the biggest challenge of our generation, says MD of AON's natural resources team Hamish Roberts.

Political problems could potentially lead to expropriation and supply chain disruption, as seen in Venezuela, Bolivia and Russia, while African countries such as Niger remain high risk due to legal and regulatory issues, warns AON.

Terrorism also poses a challenge to maintaining uranium supplies with potential for terrorists to hijack ships to disrupt Britain's nuclear industry.

"The UK Government and its subcontractors will need to rely on enduring good relationships with Australia and Africa, key suppliers of uranium, to secure its safe arrival in the long-term goals of the expanding industry," says Roberts.

In January this year, the UK Government gave the go-ahead for a new generation of nuclear reactors to tackle the challenges of climate change and energy security.

Ten new nuclear reactors are planned by 2020, with energy companies expected to fully subsidise plant decommissioning and waste disposal costs.

By Ozge Ibrahim