£10bn nuclear plant may be shelved after talks with foreign buyers collapse

PLANS for a £10billion nuclear power plant to provide up to 7 per cent of the UK’s electricity could be abandoned after talks with foreign backers collapsed.

The project – led by nuclear development firm NuGen in South Moorside in Cumbria – may be shelved after Japanese owner Toshiba and South Korean stateowned potential buyer Kepco failed to reach a deal. The plans were thrown into doubt last year due to financial issues at Toshiba and its subsidiary Westinghouse, which prompted French backers Engie to pull out. It looked set to be rescued by Kepco with the deal due to close in April.

But Toshiba has now pulled preferred bidder status from Kepco, meaning it will consider other buyers.

Justin Bowden, national secretary for energy at the GMB union, said: ‘We are back to that age-old problem of relying on foreign governments or companies for our vital infrastructure … a solution has to be found – we need our power.’

NuGen had been due to provide power to about six million homes by 2025.

Exact reasons for the breakdown in discussions are not clear. It is thought leadership changes at Kepco and the UK’s nuclear policy have played a part.

NuGen’s 60 employees and 40 contractors have been told a consultation will take place on the firm’s future. NuGen said it was ‘examining alternatives’ as to how ‘ best proceed with its continuing mission to deliver affordable and reliable low- carbon electricity for the UK’.