nuclear-news

UK Secretary (Minister) for energy and business on the staggering subsidies offered to Hitachi to build reactors in Wales … and the project collapsed anyway!

Mr. Speaker, while negotiations were ongoing, I am sure the House will understand that the details were commercially sensitive, but following Hitachi’s announcement I can set out in more candid terms the support that the government was willing to offer in support of the project.

Firstly, the government was willing to consider taking a one third equity stake in the project, alongside investment from Hitachi and Government of Japan agencies and other strategic partners.

Secondly, the government was willing to consider providing all of the required debt financing to complete construction.

Thirdly, the government agreed to consider providing a Contract for Difference to the project with a strike price expected to be no more £75 per megawatt hour.

I hope the House would agree that this is a significant and generous package of potential support that goes beyond what any government has been willing to consider in the past. Despite this potential investment, and strong support from the government of Japan, Hitachi have reached the view that the project still posed too great a commercial challenge, particularly given their desire to deconsolidate the project from their balance sheet and the likely level of return on their investment.  https://www.facebook.com/groups/1021186047913052/