Ineos in electricity deal with British Energy

The petrochemicals company, Ineos, is holding discussions with British Energy concerning an electricity deal that would assist in funding a new generation of nuclear power plants in the United Kingdom.

The petrochemicals giant has been holding talks with the nuclear energy company for a number of months. The main shareholder of Ineos is Jim Ratcliffe, the reclusive billionaire who is considered to be one of the richest men in Britain.

If the two companies come to an agreement, Ineos will purchase electricity from the new nuclear plants that British Energy owns. For Ineos it will be assured of supplies and will also get the electricity at a cheaper price. British Energy on the other hand will benefit by being able to raise debt against the agreement to construct new nuclear power facilities which will require an investment of around three billion pounds apiece.

Sources also indicate that a number of other big industrial firms are also holding discussions. The revelation also comes in the wake of the bidding which is now pitting four companies against each other namely Suez, EDF, E.ON and RWE.

A director of Ineos, Tom Crotty disclosed that the reason behind the move was that some of the new nuclear facilities that British Energy was going to build would require financing from its big clients. Mr. Crotty added that they had been in discussions for a long time.

Ineos is one of the largest consumers of electricity in Britain. For instance the consumption of its PVC and chlorine plant which is located in Runcorn, Cheshire, is greater that what the entire city of Liverpool uses.