Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
Thursday 17 January 2019 9:07 am  |  Updated:  Monday 03 June 2019 3:38 am

Government faces headache as Hitachi pulls out of £16bn Wylfa nuclear plant in Wales

The government has reasserted it commitment to developing nuclear power after Hitachi pulled out of the Wylfa nuclear power plant this morning.

The company took the decision to suspend work on the £16bn facility behind Hinkley Point C, which was meant to produce six per cent of the UK’s electricity, after holding detailed discussions with the government.

Read more: Hitachi claims 'no decision' has been made on future of UK nuclear plant

But despite the move, Hitachi has indicated that it will keep ownership of the site, while discussing options with the government.

“I am very sorry to say that despite the best efforts of everyone involved we’ve not been able to reach an agreement to the satisfaction of all concerned," said Duncan Hawthorne, the chief executive of Hitachi subsidiary of Horizon Nuclear Power.

“As a result we will be suspending the development of the Wylfa Newydd project, as well as work related to Oldbury, until a solution can be found. In the meantime we will take steps to reduce our presence but keep the option to resume development in future.”

The move puts thousands of jobs at risk and will cause headaches for a government which aims to increase nuclear’s share of energy production from a quarter to a third by 2035.

It could also come at a cost to taxpayers if the government decides to step in and rescue the project.

However, the move also hits Hitachi. The company said it will take a write-down of ¥300bn (£2.14bn) at its British nuclear unit as it suspends the project.

A spokesperson for the Department for Business, Energy and Industrial Strategy said: “As the business secretary [Greg Clark] set out in June, any deal needs to represent value for money and be the right one for UK consumers and taxpayers.”

They continued: “This government is committed to the nuclear sector, giving the go ahead to the first new nuclear power station in a generation at Hinkley Point C, investing £200 million through our recent sector, which includes millions for advanced nuclear technologies.”

“We are also reviewing alternative funding models for future nuclear projects and will update on these findings in summer 2019.”

Read more: Toshiba withdraws from UK nuclear power station

Hitachi was struggling to find other investors to join it in the project, and had called on the government to step in to provide support.

The Japanese company bought into the project when it paid £697m to two German power companies in 2012.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Transport & Infrastructure

Related Topics

Trending Articles

  • Top Burnham adviser calls for capital gains and inheritance tax hikes

  • A meeting with the breakfast king of Mayfair

  • Housebuilding giants hit with £4.5bn lawsuit for allegedly overcharging buyers

  • As it happened: Stocks jump on defence and metals boost; Oil on track to shed a fifth on US-Iran peace hopes

  • BT tops FTSE 100 after finding new home for international business with Verizon joint venture

More from City PM

  • Rolls-Royce shares surge as SMR unit bags multi-billion pound Swedish nuclear contract

    Energy
    Rendering of a small modular reactor (SMR) design showcasing compact and efficient nuclear energy solution
  • Babcock predicts global government defence spending spree after hit to profit

    Investing
    Babcock is a member of the FTSE 100.
  • Starmer scrambles to make savings in bid to boost defence spending

    Politics
    Keir Starmer discussing UKs defense strategy with BAE Systems executives in a formal meeting setting
  • X-energy Submits Xe-100 HTGR for UK Generic Design Assessment

    Business Wire
  • Type One Energy, Tokamak Energy, and AECOM Form the UK Infinity Fusion Consortium to Accelerate Development of a Commercial Fusion Power Plant in the United Kingdom

    Business Wire
  • Trump yet to make ‘final determination’ on Iran war despite discussions

    Politics
    Donald Trump raising his fist in a confident gesture during a public appearance, symbolizing determination and leadership
  • Reeves to protect energy and infrastructure projects from court challenges

    Legal
    Rachel Reeves speaking at an IOD event.
  • The King’s Speech was overshadowed by the Westminster clown show

    Politics
    The King's Speech

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Editorial Policy
  • Corrections
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
About · Editorial Policy · Corrections · Contact · Privacy