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Released October 10, 2017 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--A new nuclear project designed to supply 7% of the U.K.'s total power is not going to be operational by its original 2025 deadline according to the chief executive officer of development company NuGeneration (NuGen).
The company, a joint venture between Toshiba Corporation (TYO:6502) (Tokyo, Japan) and ENGIE (EPA:ENGI) (Paris, France), has run into financial problems and is seeking a new bidder. In April this year, Industrial Info reported key partner ENGIE was backing out of the project and planned to sell its 40% stake. For additional information, see April 11, 2017, article - ENGIE Offloads 40% Stake in U.K. Nuclear Project.
"There are multiple credible bidders and we expect to find a new buyer and a clear way forward by early next year," Tom Samson told Reuters. "Clearly there will be a shift in the start date from 2025 to later in the 2020s, but the plant could still be up and running before 2030."
Companies including state-owned nuclear giant China General Nuclear Power Corporation (CGN) (Shenzhen) and South Korea's state-owned utility Korea Electric Power Corporation (KEPCO) have been mentioned as potential bidders for a controlling stake.
The project was halted and subjected to a strategic review earlier this year after the severe financial issues experienced by Toshiba and its reactor company, Westinghouse Electric Company (Pittsburgh, Pennsylvania), which filed for Chapter 11 bankruptcy protection. Moorside would be the largest nuclear plant in the U.K., capable of supplying six million homes with power. Westinghouse was contracted to supply three of its AP1000 reactors for the project, which would have a generating capacity of up to 3,800 megawatts (MW).
With the arrival of a new partner, there is the possibility that CGN or KEPCO will want to use their own reactor technology, which will set the project back at least three to four years. While the Westinghouse AP1000 has undergone and passed the U.K.'s four-year Generic Design Assessment (GDA) process, CGN's HPR1000 reactor only entered the process at the start of this year, and KEPCO has yet to apply.
Last month, CGN announced that it would be willing to offer financial aid to Moorside for an equity stake, increasing its U.K. nuclear footprint. "We are willing to utilise our experience in nuclear design, construction and operation for more than 30 years to support the development of Britain's nuclear industry," the company stated.
Last summer, Industrial Info reported that CGN's proposed 33.5% stake in the Hinkley Point C nuclear project in the U.K. had received the green light from the government. For additional information, see September 20, 2016, article - U.K. Lifts Block on Hinkley Point Nuclear Project.
CGN is also involved in plans to build the proposed Bradwell B nuclear plant in Essex and the Sizewell C project in Leiston with Électricité de France SA (EPA:EDF) (Paris, France).
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.
The company, a joint venture between Toshiba Corporation (TYO:6502) (Tokyo, Japan) and ENGIE (EPA:ENGI) (Paris, France), has run into financial problems and is seeking a new bidder. In April this year, Industrial Info reported key partner ENGIE was backing out of the project and planned to sell its 40% stake. For additional information, see April 11, 2017, article - ENGIE Offloads 40% Stake in U.K. Nuclear Project.
"There are multiple credible bidders and we expect to find a new buyer and a clear way forward by early next year," Tom Samson told Reuters. "Clearly there will be a shift in the start date from 2025 to later in the 2020s, but the plant could still be up and running before 2030."
Companies including state-owned nuclear giant China General Nuclear Power Corporation (CGN) (Shenzhen) and South Korea's state-owned utility Korea Electric Power Corporation (KEPCO) have been mentioned as potential bidders for a controlling stake.
The project was halted and subjected to a strategic review earlier this year after the severe financial issues experienced by Toshiba and its reactor company, Westinghouse Electric Company (Pittsburgh, Pennsylvania), which filed for Chapter 11 bankruptcy protection. Moorside would be the largest nuclear plant in the U.K., capable of supplying six million homes with power. Westinghouse was contracted to supply three of its AP1000 reactors for the project, which would have a generating capacity of up to 3,800 megawatts (MW).
With the arrival of a new partner, there is the possibility that CGN or KEPCO will want to use their own reactor technology, which will set the project back at least three to four years. While the Westinghouse AP1000 has undergone and passed the U.K.'s four-year Generic Design Assessment (GDA) process, CGN's HPR1000 reactor only entered the process at the start of this year, and KEPCO has yet to apply.
Last month, CGN announced that it would be willing to offer financial aid to Moorside for an equity stake, increasing its U.K. nuclear footprint. "We are willing to utilise our experience in nuclear design, construction and operation for more than 30 years to support the development of Britain's nuclear industry," the company stated.
Last summer, Industrial Info reported that CGN's proposed 33.5% stake in the Hinkley Point C nuclear project in the U.K. had received the green light from the government. For additional information, see September 20, 2016, article - U.K. Lifts Block on Hinkley Point Nuclear Project.
CGN is also involved in plans to build the proposed Bradwell B nuclear plant in Essex and the Sizewell C project in Leiston with Électricité de France SA (EPA:EDF) (Paris, France).
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.
