Toshiba buys into proposed nuclear project in Cumbria

The Toshiba Corporation has reached agreements with GDF SUEZ of France and Iberdrola of Spain to take a 60% stake in NuGeneration Limited, the UK-based nuclear energy company which plans to develop nuclear power plants at the Moorside site in West Cumbria.

As the new majority owner of NuGen, Toshiba says that, in collaboration with its group company, Westinghouse Electric Company, it intends to move forward with the construction of three AP1000 nuclear reactors on the Moorside site, in partnership with GDF SUEZ.

Under an agreement with Iberdrola made last December, Toshiba will purchase all of Iberdrola’s indirect 50% holding in the project. Under a separate agreement reached in January with GDF SUEZ, the company will purchase a further 10% holding in the project, giving Toshiba a 60% stake in NuGen. The provisional total purchase price is £102mn and Toshiba aims to complete the overall transaction within the first half of this year.

After the closing, Toshiba will hold a 60% stake in NuGen, and GDF SUEZ will hold 40%. The three AP1000 units to be built on the site, developed by Westinghouse, will have a combined capacity of 3.4 GW.

Meanwhile, the UK and French governments have jointly declared their commitment to developing safe nuclear energy, commercial opportunities and skills. The declaration reiterates the two governments’ shared view that nuclear power has a critical role to play in a cost-effective low carbon transition.

Secretary of State for Energy and Climate Change, Edward Davey and French Energy Minister Phillipe Martin met in January to discuss how the two countries can further work together to develop interconnectors, nuclear and renewable energy projects. Davey said: ‘Our partnership on nuclear power has already borne fruit, with this government’s agreement with EDF on key commercial terms for an investment contract that would enable Britain’s first new nuclear power station in a generation to be built at Hinkley Point in Somerset.’

The French and UK government have agreed to:

·      engage constructively with the European Commission’s State aid consultation on Hinkley Point C to demonstrate that the project meets State aid rules;

·      work together to maximise opportunities for SMEs in nuclear supply chains;

·      develop skilled workforces through investing in joint training programmes and in research and development; and

·      enhance capabilities in civil nuclear emergency planning and security.