Set-back for nuclear new build as Toshiba winds-up NuGen

News

Plans to build a new nuclear power station in Cumbria have suffered a set-back following Toshiba’s decision to wind up NuGen, the company set up to build the plant.

NuGen planned to develop a new-generation nuclear power station of up to 3.6GW on land in Moorside, West Cumbria at a cost of around £10bn.

Toshiba became the sole owner of NuGen in 2017 when it bought Engie’s share in the company, an event triggered by Toshiba subsidiary Westinghouse Electric Company filing for bankruptcy in the US.

Toshiba has since invited new investors to participate in NuGen but doesn’t foresee a sale of the company during the current financial year. The Regulated Asset Base (RAB model), a potential new policy framework from government to finance nuclear new build, is also thought to have deterred new investors into Moorside.

“After considering the additional costs entailed in continuing to operate NuGen, Toshiba recognises that the economically rational decision is to withdraw from the UK nuclear power plant construction project,” the company said.

In a statement Toshiba added it will start the winding-up process by January 31, 2019.

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