Energy crisis fear as Hitachi scraps £15bn nuclear plant

HITACHI will not continue to build a £15billion nuclear power station, it announced yesterday.

The news it is quitting construction at Wylfa, on Anglesey in North Wales, delivers a huge blow to Britain’s nuclear industry.

The Japanese company said it had made “strong progress” but had not been able to reach an agreement on financing.

The Government had offered to consider taking a large stake in the plant, it has been revealed.

Unions have called on ministers to rescue the deal, warning of an energy “crisis”.

Business Secretary Greg Clark told MPs that nuclear energy had become more “challenging” as the cost of renewables had fallen “dramatically”, to the point where it needs little public subsidy.

“The Government was willing to consider taking a one-third equity stake in the project, alongside investment from Hitachi, Japanese government agencies and other strategic partners,” said Mr Clark.

“Despite this potential investment and strong support from the government of Japan, Hitachi have reached the view the project still posed too great a commercial challenge.” Duncan Hawthorne, of Hitachi’s Horizon Nuclear Power, said: “We have made very strong progress on all aspects of the project’s development.

“Despite the best efforts of everyone, we have not been able to reach an agreement to the satisfaction of all concerned.”

Hitachi will also suspend work at Oldbury, Gloucestershire, “until a solution can be found”.

It has spent more than £1billion on the Wylfa project, which was expected to cost £15billion in all.

The Unite union called the decision “a disaster for the economy and future energy needs”.

The move follows a decision by Toshiba not to go ahead with a plant at Moorside in Cumbria.