Hitachi said Wednesday that it is withdrawing from a billion-pound nuclear power plant allocation in Wales, leading to a deteriorating investment environment, in a blow to Britain’s low-carbon force ambitions.
The Anglesey assignment had already been suspended for 20 months “and the investment environment has become increasingly serious due to the Covid-19 impact,” the Japanese company said in a statement.
The company said it would coordinate with the UK government and others on the destination of its licenses and planned sites without regard to the withdrawal decision.
The Japanese commercial giant’s plan to build two reactors at Wylfa Newydd in Wales had been suspended since January 2019 due to investment problems.
Construction of the plant in Anglesey, northwest Wales, had been estimated at 20 billion pounds ($25. 7 billion, 21. 7 billion euros).
Its target generation capacity is approximately 3 gigawatts, enough to meet approximately 6% of Britain’s electricity needs.
As recently as last month, Hitachi’s Horizon Nuclear subsidiary insisted that she was still concerned about the project, but news of the planned withdrawal gave the impression in the Japanese media this week, causing dismay in Anglesey.
“If this resolution is confirmed, it will be a devastating blow to Anglesey’s economy,” Council leader Llinos Medi said Tuesday.
Hitachi awaiting the UK government’s new energy strategy, which has not yet been published but could come up with new investment models for the nuclear industry.
British nuclear power plants built in the last century have closed or are reaching the end of their useful life.
But the country needs 20% of the electricity it derives from the nuclear sector to help meet its commitment to reduce carbon emissions to zero by 2050 and combat climate change.
Hinkley Point’s assignment in the west of England is lately the nuclear allocation under structure and is expected to be completed by 2025.
Hitachi’s resolution comes amid considerations on China’s participation in British nuclear and diplomatic tensions between London and Beijing.
China’s lawmakers participate in General Nuclear Power (CGN) in several projects, adding one in partnership with French EDF.
The resolution also undermines Japanese attempts to expand its nuclear operations after the Fukushima crisis stopped ordering new reactors in Japan.
In 2018, Toshiba ended a nuclear power plant in the north-west of England.