Japanese conglomerate Hitachi is planning to build the £20bn Wylfa Newydd nuclear power station in Anglesey, Wales, by the mid-2020s - adding to the growing list of nuclear facilities in the UK that also includes Hinkley Point C, Sizewell C and Moorside
Construction on the Wylfa Newydd nuclear plant is expected to start in 2020 (Credit: Horizon Nuclear Power)
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Nuclear is a key plank of Britain’s energy future – with the £20bn Wylfa Newydd power station planned to go live by the mid-2020s.
Japanese conglomerate Hitachi is leading development on the facility, which would be located in Anglesey, Wales, via its UK energy subsidiary Horizon Nuclear Power.
Its proposal comprises two reactors and 2,700 megawatts (MW) of power – enough for five million homes.
Construction is due to start in 2020, with the project tipped to generate 9,000 jobs during the development process and 850 permanent jobs once its 60-year operation life cycle begins.
But speculation has mounted that the project might not get the go-ahead, with reports in Japan suggesting Hitachi will pull the plug later this week – although the company says no formal decision has yet been made.
It isn’t the only UK nuclear plant in the works, with progress on the Somerset-based Hinkley Point C and Suffolk-based Sizewell C facilities looking promising.
And while the £15bn Moorside nuclear plant in Cumbria has also been in the pipeline, its future looks uncertain after Japanese manufacturer Toshiba pulled the plug once it was unable to find a buyer.
What is Wylfa Newydd? The story so far
Wylfa Newydd means “new Wylfa” in Welsh – an apt name considering it will be built adjacent to the old Wylfa nuclear plant, which closed down in 2015 after 44 years of operation.
Hitachi submitted an initial design proposal for the reactor in January 2014 for review by the UK’s Environment Agency and the Office for Nuclear Regulation.
By September that year, public consultations on the project had begun and continued through to 2016, with approval for the facility granted by the Planning Inspectorate in June 2018.
Despite policy historically being opposed to direct investment in nuclear power projects, the UK government intends to provide £5m for Wylfa Newydd.
US engineering firm Bechtel was appointed to manage construction of the plant in August this year.
It has been involved in more than 150 nuclear power plant projects and under this contract the company will have almost 200 employees embedded within Hitachi subsidiary Horizon Nuclear Power.
Horizon Nuclear Power CEO Duncan Hawthorne added: “This world-leading company brings a wealth of nuclear, engineering and construction expertise to complement our growing organisation and will help us.
“Our first power station will be cheaper than what has gone before and after that, with smart financing, supply chain learnings and no need for first time overheads, future project costs will fall further still.”
Doubt cast on future of Wylfa Newydd
In December, Japanese television station TV Asahi reported there were concerns over the project’s feasibility after an apparent rise in construction costs, although Hitachi condemned this information as “rumours and speculation”.
Hitachi sources told the BBC: “This is one of the aspects of the project development phase that must be concluded before construction of Wylfa Newydd can go ahead, but the discussions are commercially confidential.”
Further doubt was cast on the project’s future last week when reports surfaced in Japan that Hitachi will suspend work this week.
A spokesperson for the Department for Business, Energy and Industrial Strategy (BEIS) said: “Negotiations with Hitachi on agreeing a deal that provides value for money for consumers and taxpayers on the Wylfa project are ongoing.
“They are commercially sensitive and we do not comment on speculation.”
One funding option that has been explored by the UK government for new nuclear projects is regulated asset base model, which transfers risk from developers to consumers but is designed to bring more investors to the table.
Benefits of Wylfa Newydd
Although groups such as People Against Wylfa B oppose the scheme due to environmental and financing concerns, Isle of Anglesey County Council has backed it for the economic growth potential it could bring through job creation and inward investment.
Trade union GMB has also called for the government to step in and ensure construction goes ahead, saying any suspension will leave the country’s energy plans “reduced to tatters”.
It pointed out how Britain’s existing fleet of nuclear power stations provide 20% of the country’s electricity needs and will begin to go offline by the middle of the next decade – by which time the UK’s coal fleet will also have ceased production.
GMB national secretary Justin Bowden said: “If the mood music from Tokyo ahead of Hitachi’s board meeting on Monday (January 14) is correct, then without urgent UK government intervention, this country’s new nuclear energy plans will be reduced to tatters.
“Government must act and step in now, picking up the reins and taking whatever funding stake is necessary, to ensure Wylfa goes ahead on time.
“Britain needs at least six new ultra low carbon nuclear power stations for the guaranteed electricity they can provide.
“Wind and solar on their own cannot keep the country’s lights on, our homes heated and the economy powered. For that, we need nuclear and gas as well.
“As GMB has pointed out time and again, relying on foreign companies for vital energy infrastructure is plain daft.”