Tuesday, August 21, 2018

Bechtel Bails - Botched Budget

Subtitle:  New Nuclear Plant in Wales has Budget Escalation Before Construction

Bechtel, the giant engineering, procurement, and construction (EPC) company with extensive nuclear plant experience, reportedly has withdrawn from the construction of a new nuclear power plant in Wales, UK, the Wylfa Newydd plant.  The reason given is the plant has escalating costs and Bechtel cannot make a profit on the contract.   The plant hasn't even started construction yet.  see link  The quote from Asahi Shimbun:  ". . . the overall costs estimated by Bechtel are higher than Hitachi’s, making it impossible for Bechtel and Hitachi to agree on the price tag."

As a result, Bechtel decided to withdraw from its key role in construction and only offer a consulting service.

This plant is to have two reactors of the ABWR type, Advanced Boiling Water Reactors licensed by Hitachi.  Total electrical output is 2,700 MWe, with each reactor providing half.  

Bechtel will take on an advisory or consulting role, and another company will be the builder.   The problem with that is the builder has zero experience in building an entire nuclear power plant.   Having an inexperienced builder is exactly what got the Olkiluoto plant in Finland in so much trouble.  Olkiluoto has the French design, the EPR for European Pressurized Reactor.  

Bechtel:  "We look forward to continuing to bring our expertise to the construction of the UK’s next new nuclear power station at Wylfa Newydd in our role as Project Management Contractor.”  Project Management Contractor generally is the term for the Owner's representative that oversees the Builder's work.  

This one will be quite interesting to follow in the coming years. 

Roger E. Sowell, Esq.
Houston, Texas
copyright (c) 2018 by Roger Sowell - all rights reserved



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Nuclear Power Plants.......here
Climate Change................here  and here
Fresh Water......................here
Engineering......................here  and here
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Renewable Energy...........here  

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