£10bn nuclear project in doubt amid Toshiba crisis

The £10bn NuGen nuclear project at Moorside near Sellafield in Cumbria is under threat because Japanese company Toshiba – which has a 60% stake in the scheme –  has been hit by an accounting scandal.

It is feared Toshiba may withdraw completely from Moorside if the company and its joint venture partner, French energy company Engie, cannot find new investment.

Toshiba has been left dealing with a write-down of possibly up to £4.8bn of its US nuclear subsidiary, Westinghouse Electric, as a result of claims it overpaid by several billion dollars for another nuclear construction and services business.

Reports in the national press over the weekend suggest Toshiba has privately decided to end its involvement, backing up sources who told Reuters and the Wall Street Journal that the Japanese company was withdrawing from new nuclear projects in the UK.

They suggest Toshiba is set to pull out altogether if it and Engie cannot secure new investment.

The NuGen project would supply power to about 6m homes from 2025, costing more than £10bn to build, and would be one of Europe’s largest nuclear power plants.

Westinghouse UK, Toshiba’s British subsidiary, is providing the reactors for the planned project, the rest of which is owned by Engie.

Now, the Government is being urged to guarantee funding for the power station.

Justin Bowden, the GMB union’s national secretary for energy, said: “The Government should step in now to fill any gaps in funding and ensure the project continues to move forward as quickly as possible.

“It is bonkers that we should rely on foreign investors to ensure facilities which would guarantee our energy needs for the future are built.”

Engie said it is currently seeking investment and is continuing to evaluate the site and design of the Moorside plant.

A spokesman said: “The NuGen partners are working with the British government and regulator to obtain the necessary permits and determine contract conditions.

“In order to secure the project’s investment needs, NuGen and its current shareholders, Toshiba and Engie, are actively reviewing debt and equity financing alternatives.”

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