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Released January 28, 2019 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Hitachi-GE Nuclear Energy (Wilmington, North Carolina) has shelved plans for two major nuclear power projects at Wylfa and Oldbury in the U.K. and confirmed that it will take a loss of $2.77 billion already spent on the projects.
Developer Horizon Nuclear Power, which was bought out by Hitachi in 2012, said that it was suspending works at the Wylfa Newydd nuclear plant on Anglesey in North Wales and at a second site at Oldbury II on Severn in South Gloucestershire. Hitachi said that it was unable to reach a suitable agreement with the U.K. government over funding and the future price paid for the electricity generated. Wylfa, with an estimated investment value of $18 billion, would have a capacity of 2,700 megawatts (MW), while the bigger Oldbury II project would have a capacity of 3,900 MW. Last November, Toshiba Corporation (TYO:6502) (Tokyo, Japan) pulled the plug on one of the U.K.'s largest planned nuclear power projects--Moorside--after the failure of 18 months of negotiations with potential partners. For additional information, see August 21, 2018, article - Toshiba Abandons Moorside Nuclear Project in the U.K..
"We have been in close discussions with the U.K. government, in cooperation with the government of Japan, on the financing and associated commercial arrangements for our project for some years now," explained Duncan Hawthorne, chief executive officer of Horizon Nuclear Power. "I am very sorry to say that despite the best efforts of everyone involved, we've not been able to reach an agreement to the satisfaction of all concerned. As a result, we will be suspending the development of the Wylfa Newydd project, as well as work related to Oldbury, until a solution can be found. In the meantime, we will take steps to reduce our presence but keep the option to resume development in future."
In November, Industrial Info reported that Hitachi-GE had recruited Atkins (Sheffield, England), KBR Incorporated (NYSE:KBR) (Houston, Texas) and Wood Group plc (Aberdeen, Scotland) for the Wylfa project. At the end of 2017, the U.K.'s Office for Nuclear Regulation (ONR) revealed that Hitachi's-GE Advanced Boiling Water Reactor (U.K. ABWR) had passed the rigorous four-year Generic Design Assessment (GDA). For additional information, see November 18, 2018, article - U.K.'s $18 Billion Wylfa Nuclear Project Adds New Partners and December 20, 2017 article--U.K. Approves Hitachi-GE Nuclear Reactors.
U.K. Business Secretary Greg Clark said the government was still committed to new nuclear and that the government had offered Hitachi-GE a "generous and significant" package of support included providing a debt facility for the project, taking a stake of one third and proposing a guaranteed price of power of up to £75 ($96.5) per megawatt-hour for 35 years. Clark cited the rapidly falling costs of renewable energy and added: "The challenge of financing new nuclear is one of falling costs and greater abundance of alternative technologies, so that it is being outcompeted."
The collapse of the Wylfa and Oldbury II projects was greeted by dismay and extreme concern by many U.K. organisations. Tom Greatrex, chief executive of the Nuclear Industry Association, said: "Today's news is disappointing, not just for the Wylfa Newydd project but for Anglesey and the nuclear industry as a whole. Wylfa remains a strong site for vital new nuclear power for the U.K. Wylfa is part of the U.K.'s nuclear new build programme, which is proceeding with Hinkley Point C build, which is on track, with more than 3,600 people currently working on the construction site. The urgent need for further new nuclear capacity in the U.K. should not be underestimated, with all but one of the U.K.'s nuclear power plant due to come offline by 2030."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Developer Horizon Nuclear Power, which was bought out by Hitachi in 2012, said that it was suspending works at the Wylfa Newydd nuclear plant on Anglesey in North Wales and at a second site at Oldbury II on Severn in South Gloucestershire. Hitachi said that it was unable to reach a suitable agreement with the U.K. government over funding and the future price paid for the electricity generated. Wylfa, with an estimated investment value of $18 billion, would have a capacity of 2,700 megawatts (MW), while the bigger Oldbury II project would have a capacity of 3,900 MW. Last November, Toshiba Corporation (TYO:6502) (Tokyo, Japan) pulled the plug on one of the U.K.'s largest planned nuclear power projects--Moorside--after the failure of 18 months of negotiations with potential partners. For additional information, see August 21, 2018, article - Toshiba Abandons Moorside Nuclear Project in the U.K..
"We have been in close discussions with the U.K. government, in cooperation with the government of Japan, on the financing and associated commercial arrangements for our project for some years now," explained Duncan Hawthorne, chief executive officer of Horizon Nuclear Power. "I am very sorry to say that despite the best efforts of everyone involved, we've not been able to reach an agreement to the satisfaction of all concerned. As a result, we will be suspending the development of the Wylfa Newydd project, as well as work related to Oldbury, until a solution can be found. In the meantime, we will take steps to reduce our presence but keep the option to resume development in future."
In November, Industrial Info reported that Hitachi-GE had recruited Atkins (Sheffield, England), KBR Incorporated (NYSE:KBR) (Houston, Texas) and Wood Group plc (Aberdeen, Scotland) for the Wylfa project. At the end of 2017, the U.K.'s Office for Nuclear Regulation (ONR) revealed that Hitachi's-GE Advanced Boiling Water Reactor (U.K. ABWR) had passed the rigorous four-year Generic Design Assessment (GDA). For additional information, see November 18, 2018, article - U.K.'s $18 Billion Wylfa Nuclear Project Adds New Partners and December 20, 2017 article--U.K. Approves Hitachi-GE Nuclear Reactors.
U.K. Business Secretary Greg Clark said the government was still committed to new nuclear and that the government had offered Hitachi-GE a "generous and significant" package of support included providing a debt facility for the project, taking a stake of one third and proposing a guaranteed price of power of up to £75 ($96.5) per megawatt-hour for 35 years. Clark cited the rapidly falling costs of renewable energy and added: "The challenge of financing new nuclear is one of falling costs and greater abundance of alternative technologies, so that it is being outcompeted."
The collapse of the Wylfa and Oldbury II projects was greeted by dismay and extreme concern by many U.K. organisations. Tom Greatrex, chief executive of the Nuclear Industry Association, said: "Today's news is disappointing, not just for the Wylfa Newydd project but for Anglesey and the nuclear industry as a whole. Wylfa remains a strong site for vital new nuclear power for the U.K. Wylfa is part of the U.K.'s nuclear new build programme, which is proceeding with Hinkley Point C build, which is on track, with more than 3,600 people currently working on the construction site. The urgent need for further new nuclear capacity in the U.K. should not be underestimated, with all but one of the U.K.'s nuclear power plant due to come offline by 2030."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
