Cape secures record £140m deal with British Energy

SUPPORT services company Cape has won a £140m contract to support British Energy’s eight nuclear power stations.

The seven year contract means that Wakefield-based Cape will now be responsible for servicing all of British Energy’s nuclear fleet having previously serviced five.

The deal encompasses the supply of specialist access and thermal insulation services in support of the fleet’s maintenance, projects and statutory output programmes.

Martin May, chief executive of Cape, said: “The award of this contract has major, strategic importance for Cape being the largest UK power generation contract of this nature, providing valuable sector experience for our ambitions in the nuclear decommissioning sector and strategic positioning for entry into the forthcoming nuclear new-build programme.

“We are pleased to contribute towards the maintenance of the UK`s largest fleet of nuclear power stations, which extends our services to support in excess of 63% of the nation’s power generation capacity.”

British Energy, which is now part of EDF Energy, is the UK’s largest producer of electricity, producing around one sixth of the nation’s supply from eight nuclear and one coal fired power station (also serviced by Cape).

It operates two types of nuclear reactor – the advanced gas-cooled reactors Dungeness B, Hartlepool, Heysham 1, Heysham 2, Hinkley B, Hunterston B and Torness and a pressurised water reactor (PWR) Sizewell B.

The nuclear stations have a combined capacity of almost 9,000 megawatts.

Earlier this month Cape confirmed that discussions with a number of private equity houses had ended.

It said in a statement that the board was confident of the prospects of the group as an independent business.

Cape reported in January that performance was in line with management expectations following a strong second half.

The company’s preliminary results will be issued on March 19.