Nuclear power project ‘could be abandoned’
Hitachi is considering scrapping Wylfa Newydd over fears about increasing construction costs – according to media reports in Japan.
Japan’s TV network Asahi reported that the £14bn Anglesey nuclear project could be dropped – with the company’s board due to hold a key meeting today.
It comes as Hitachi is locked in negotiations with the UK and Japanese governments about taking a stake in the nuclear venture, Horizon Nuclear Power.
Sources have indicated that the reports coming from Hitachi in the Japanese press may be part of that negotiating strategy.
They say Hitachi will want to ensure nuclear power remains near the top of the Government’s agenda at a time when Brexit is dominating business in Westminster.
The board is due to discuss the situation today, but in the UK it is in business as usual, with work on the Development Consent Order under way.
A Horizon Nuclear Power spokesman said: “Since the Secretary of State’s statement to the House in June this year, we’ve been in formal negotiations with the UK Government regarding financing of the Wylfa Newydd project in a way that works both for investors and the UK electricity customer.
“This is one of the aspects of the project development phase that must be concluded before construction of Wylfa Newydd can go ahead, but the discussions are commercially confidential and we won’t be commenting on rumours or speculation.”
The National Infrastructure Planning committee is carrying out an examination of the application for the nuclear station. It is expected to make its recommendation to the Business, Energy and Industrial Secretary next spring, with a decision due in the summer.
Funding is potentially the biggest hurdle, with Hitachi wanting additional investors to share the cost and risk of the multi-billion-pound project.
The plant could start operating by the mid-2020s if it gets funding and planning approval.