Toshiba and GDF Suez sign deal for largest European nuclear project in Cumbria

Plans to build Europe’s largest new nuclear project in Cumbria have taken a step forward after Toshiba and GDF Suez signed a deal to develop the site, with Toshiba taking a controlling stake in the project.

The Japanese engineering giant will take a 60% stake in Nugen, the joint venture set up to develop the plant, with the French energy company taking a 40% stake.

NuGen will build three reactors at the Moorside site near Sellafield using Toshiba company Westinghouse’s AP1000 reactors.

Final investment decisions should be made in about four years, Nugen said.

“The Moorside new nuclear project will bring at least £10bn of investment and is expected to create up to 21,000 jobs, while also providing a reliable source of low carbon energy for over six million homes,” said Energy Minister Michael Fallon.

“This announcement is a significant step towards new reactors likely to come online in 2024 and shows how attractive the UK is for investors.”

Work on more detailed plans will now begin, but questions remain about how the project will be funded.

The European Commission is currently investigating whether government support for the planned new £16 billion Hinkley Point nuclear plant in Somerset breaches EU rules.

The three Westinghouse reactors planned for Moorside would have a combined output of 3.4 gigawatts. Nugen says they would be able to supply almost 7% of the UK’s electricity requirements.

Each of the reactors is expected to take four years to build.

According to the Construction Enquirer Hisao Tanaka, President and CEO, Toshiba Corporation, said: “We welcome the closing of the contract, which reconfirms Toshiba’s, GDF SUEZ’ and Westinghouse’s commitment to build three AP1000 reactors at Moorside.

“We are confident this project will support the U.K. in meeting the challenges of securing a stable, affordable future energy supply and cutting CO2 emissions.”

Westinghouse President and CEO Danny Roderick added: “Westinghouse is delighted that Europe’s largest AP1000 nuclear plant project to date will be constructed in the UK, which already is home to one of our largest global operations.”

© Copyright Tom Richardson