Toshiba has scrapped plans for a new nuclear power station in the UK. The company said it has been in talks with potential investors in the NuGen project, but cannot see them completing before 31 March 2019. As such, it has decided not to take further financial risk.
“Toshiba recognises that the economically rational decision is to withdraw from the UK nuclear power plant construction project, and has resolved to wind-up NuGen,” the company stated.
Toshiba said it will start the winding up process by 31 January.
The company said it would attribute a loss before taxes of 15bn Yen (£100m) to the project in its full year results. The company’s share price rose on the news as part of broader selloffs and restructuring announced by the company.
NuGen had intended to build a 3.6GW power station at Sellafield. Engie was an original project partner, along with Iberdola and SSE. While Iberdrola and SSE exited the partnership earlier, the French utility pulled out only after reactor maker Westinghouse, owned by Toshiba, filed for bankruptcy protection, leaving Toshiba with 100 per cent ownership.
See Toshiba’s announcement here.