Serco, Battelle To Run UK National Nuclear Laboratory

A consortium led by U.K. international service company Serco Group PLC (SRP.LN) with the U.S.' Battelle and the University of Manchester has been selected as recommended bidder to run the U.K.'s National Nuclear Laboratory at Sellafield, the U.K. government said Monday.

The NNL, formerly Nexia Solutions, will become an international center of excellence in nuclear research and development, playing a vital role in cleaning up both the U.K.'s nuclear waste legacy and contributing to the nuclear new build program.

"With new nuclear power stations in the U.K. coming forward by 2018, and decommissioning of old sites progressing, the National Nuclear Laboratory will be an increasingly important facility," said Energy and Climate Change Minister Mike O'Brien.

"It will be a leader in high-tech nuclear skills in the U.K.," he added.

The role of the contractor will be to provide strategic vision and management to the NNL and to develop it as a standalone business.

The contract will be for an initial three-year period with options to be extended by up to two years.

Subject to completion of a number of outstanding actions, the Department of Energy and Climate Change expects the contract to come into effect April 1.

The NNL will be operated under a Government Owned Contractor Operated arrangement.

-By Selina Williams, Dow Jones Newswires [phone]; [e-mail]