Bankrupt plutonium company threatened by the collapse of its largest customer

Press release - 7 September, 2002
The troubles of already bankrupt British Nuclear Fuels deepen as its two largest clients suffer catastrophic events. The UK taxpayer may have to foot the bill.

72% of the British public say no to nuclear power and yes to wind. Greenpeace projects poll result onto Sizewell nuclear plant/

In the space of one week British Nuclear Fuel's (BNFL) two largest clients, who account for 50% of its total reprocessing business, have suffered catastrophic events, which Greenpeace believe will cost the UK taxpayer millions of pounds.

BNFL's largest single reprocessing client British Energy has declared itself on the verge of insolvency and Japan's largest utility Tokyo Electric Power Company (TEPCO) has been embroiled in a scandal around falsification of safety inspections at their reactors. TEPCO announced an immediate freeze to its plans to use plutonium produced from the reprocessing of nuclear waste at the Sellafield site.

British Energy, the nuclear operator responsible for 28% of UK electricity supply, suspended its shares. In recent weeks the company has been forced to shut down reactors and disclose liabilities which overwhelm its ability to make debt repayments. This has destroyed confidence in the company's ability to continue operating. In a desperate attempt to survive, British Energy has sought desperate measures to increase revenue and reduce costs (1). One of the most significant being urgent negotiations with BNFL to reduce the reprocessing fees as British Energy is charged between £250-300 million sterling each year by BNFL for reprocessing at THORP. Opting for storage rather reprocessing would save the company between £200-250 million-year.

"It is entirely predictable that British Energy would collapse. The company warned the UK Government that they had to stop reprocessing, but the Government deliberately ignored and blocked them. The conspiracy between BNFL and the Government to keep Sellafield operating at any costs is one of the contributory factors to British Energy's collapse. Rather than continuing this insanity to the cost of the UK taxpayer and the environment, reprocessing should cease immediately", said Shaun Burnie, Greenpeace International Nuclear Campaigner on board the Rainbow Warrior in Dublin.

For more than two years, British Energy executives have sought to cancel the reprocessing contracts. In submissions to the UK Government, British Energy has cited the economic nonsense of reprocessing its nuclear waste. British Energy contracts with BNFL in total amounts 4,600 tons of spent fuel. If all of this was reprocessed the utility would have around 40,000 kgs of plutonium.

To date BNFL has reprocessed 1,500 tons giving the utility 15,000 kgs of plutonium. Not one gram of this plutonium is planned to be used in any UK reactor.

More bad news for BNFL is that Kashawazaki City Assembly voted by a majority yesterday, Friday, against the use of plutonium fuel in a nearby nuclear reactor owned by TEPCO, who are one of BNFL's largest reprocessing customers. It is a further sign that Japan's attempts to use plutonium in their reactors is collapsing, along with the British nuclear industry.

As a potent symbol of BNFL's failed business, the Pacific Pintail and Pacific Teal, the two armed nuclear freighters carrying rejected plutonium mixed oxide (MOX) back from Japan to Sellafield, is expected in the Irish Sea within the next two weeks. The Irish Government announced on Tuesday that they will deploy Irish naval vessels and military aircraft to monitor the nuclear ships.

The shipment has met opposition all along its 18,000 miles route, including 80 Governments. It will be met by the Nuclear Free Irish Sea Flotilla who supported by the Greenpeace flagship the Rainbow Warrior, will peacefully protest against the ships.

Notes: (1) Greenpeace UK briefing available at www.greenpeace.org.uk

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