Hitachi, Ltd. and Horizon Nuclear Power (Horizon), a subsidiary of Hitachi, today announced that Hitachi, Horizon Nuclear Power Wylfa Ltd and HM Treasury signed a co-operation agreement to promote external financing for a new nuclear power station on Anglesey.
The agreement was signed today with the Chief Secretary to the Treasury, the Rt Hon Danny Alexander MP, at the launch of the Government’s UK Infrastructure plan 2013. It establishes arrangements designed to enable access to the UK Guarantee Scheme that will underpin the establishment of external project finance for the ‘Wylfa Newydd’ project, expected to come on-stream in the first half of the 2020s.
Hitachi and Horizon expect to have the full range of licences and permissions for the first project, Wylfa Newydd, in place by 2018. Horizon is developing plans for two nuclear power station projects at Wylfa on Anglesey and Oldbury-on-Severn in South Gloucestershire. External finance, potentially from both equity and debt sources, is expected to be required to fund the construction of the project, and the UK Guarantee Scheme is considered to be a key component of any future financing structure.
Welcoming the agreement, Mr Masaharu Hanyu, Deputy Chairman of Hitachi Europe Ltd. and Chief Executive of the Nuclear Power Systems Business in Europe said: “Our acquisition of Horizon represents a 100 year commitment to the UK. This co-operation agreement is a welcome demonstration of the UK Government’s equal commitment to making a new generation of nuclear power stations a reality.”
Horizon Chief Operating Officer Alan Raymant said: “This is excellent news and another step forward for Wylfa Newydd. It will build confidence amongst our supply chain, future workforce, local communities, and importantly potential investors. New nuclear must be a part of the future energy mix given our long term need for reliable low-carbon electricity which is also affordable for the consumer.”
At a minimum of 2,700MW, the Wylfa Newydd power station will produce enough low carbon energy for up to three million homes.