Hitachi, Horizon Nuclear Power Wylfa and the Treasury have signed an agreement to promote external financing for a new nuclear power station on Anglesey.
The agreement was signed today, December 4, 2013 with Danny Alexander, chief secretary to the Treasury at the launch of the government’s UK Infrastructure plan 2013.
Today’s agreement establishes arrangements designed to enable access to the UK Guarantee Scheme that will underpin the establishment of external project finance for the Wylfa Newydd project, one of two new nuclear projects from Horizon that is scheduled to come on-stream in the first half of the 2020s.
Horizon, a subsidiary of Hitachi, expects to have the full range of licences and permissions for the 2,700MW rated Wylfa Newydd in place by 2018.
Horizon is also developing plans for a second nuclear plant in Oldbury-on-Severn in South Gloucestershire.
External finance, potentially from both equity and debt, is expected to be required to fund construction of the project, which the UK Guarantee Scheme has been designed to support by providing an unconditional and irrevocable financial guarantee in favour of a lender to a UK infrastructure project.
‘This is excellent news and another step forward for Wylfa Newydd,’ said Alan Raymant, Horizon chief operating officer in a statement. ‘It will build confidence amongst our supply chain, future workforce, local communities, and importantly potential investors. New nuclear must be a part of the future energy mix given our long term need for reliable low-carbon electricity which is also affordable for the consumer.’
In a related development, Horizon has announced contracts with three UK-based companies for the provision of engineering and related technical services for Wylfa and Oldbury.
AMEC, Atkins and Cavendish Nuclear (plus their supply chains) will be working collaboratively with Horizon for the next three years on consultancy and technical design activities for Horizon’s lead site, Wylfa Newydd, and supporting the development of expertise within the company itself.