Moorside U.K. Nuclear Project Gets Government Support

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The developer behind the largest proposed U.K. nuclear power project has welcomed support from the Prime Minister as key partner Toshiba Corporation (TYO:6502) (Tokyo, Japan) records huge financial losses and plans to cut international reactor development.

The future of the Moorside project in West Cumbria has been overshadowed as majority owner Toshiba recorded losses of $3.4 billion in the year to March 2017 and forecast that it would post a $6.3 billion loss against its U.S. nuclear unit. The company's Chairman stepped down following the results and the company said that it would be cutting back on international nuclear project spending.

NuGeneration, a U.K. joint venture between Toshiba (60%) and ENGIE (EPA:ENGI) (Paris, France) (40%), is planning to build the new plant, which will have three reactors and a generating capacity of up to 3,800 megawatts (MW). This would make it the biggest nuclear plant in the U.K., capable of supplying 6 million homes with power--roughly 7% of the U.K.'s total electricity needs.

Speaking in West Cumbria recently, Prime Minister Theresa May was questioned about the future of Moorside.

"The consortium involved in Moorside has been absolutely clear," she said. "They have reconfirmed their commitment to Moorside. The Business Secretary Greg Clark has spoken to NuGen and Toshiba in the last few days, and in fact over the last six months, he has made three visits to Japan, working with the government there and businesses there about their investment here in the U.K.. It is the Conservative Party who are committed to the nuclear industry in the U.K.. We have agreed the first new nuclear build (Hinkley Point C) in a generation."

NuGen Chief Executive Officer Tom Samson added: "The comments by the Prime Minister further demonstrate the U.K.'s commitment to nuclear new build and recognise the importance of the Moorside project and the vital role nuclear, and NuGen, have to play. NuGen remains committed to developing and delivering the next generation of nuclear power in the U.K.. The strong support of the U.K. government strengthens our investment case for safe, reliable, affordable, low-carbon energy using proven technology. NuGen has been working with the government to ensure Moorside will feature as a vital part of the U.K.'s future energy mix, and we will continue to collaborate with the government as we address the challenges and move the project forward."

Moorside will use three AP1000 nuclear reactors from Westinghouse Electric Company (Pittsburgh, Pennsylvania), which have been going through the Generic Design Assessment (GDA) process since 2011 and entered the closeout phase of the process in 2015.

Toshiba bought its way into the U.K. nuclear sector when it paid 128 million euros ($135 million) for its controlling stake in the venture. For additional information, see July 7, 2014, article - Toshiba Buys into U.K. Nuclear Sector.

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