The £15 billion Moorside nuclear power station project in Cumbria has been left in tatters.
The economy-boosting project will now not happen after the owners of the developer behind the project, NuGen, took the decision to wind it up after failing to make sufficient progress on securing a buyer.
Toshiba announced yesterday morning that it was taking the drastic step 18 months after it was left as the sole owner of NuGen, which had hoped to develop the Moorside site north of Sellafield.
The project would have created thousands of jobs during the construction and operation stage and generated around seven per cent of the UK’s energy needs.
Toshiba had previously said it wanted to offload NuGen by the end of the financial year, as it looks to divest completely from nuclear activity, but may make the decision earlier if it was not convinced a deal was achievable.
In a statement it said: “Under Toshiba’s policy to eliminate risks related to the overseas nuclear power construction business, Toshiba has invited new investors to participate in NuGen, and also considered the sale of Toshiba Group’s shareholding in NuGen.
“However, notwithstanding negotiations with multiple companies, Toshiba is unable to anticipate to complete the sale of NuGen during financial year 2018 to March 2019.
“After considering the additional costs entailed in continuing to operate NuGen, Toshiba recognises that the economically rational decision is to withdraw from the UK nuclear power plant construction project, and has resolved to take steps to wind-up NuGen.”
The company said the wind-up process would start by January 31 and it expected to incur losses before taxes of around £100.6 million.
Cumbria’s leading politicians have called for the Government to do all it can to make sure Moorside goes ahead.
West Cumbrian MPs Trudy Harrison and Sue Hayman are currently in China, meeting with the Chinese state-backed firm China General Nuclear Power Group.
Mrs Harrison, Copeland MP, will also meet with the UK Government’s minister for nuclear on Monday.
She said: “Now is not the time for doubt, but for redoubling our efforts to get Moorside over the line. The latest setback means we must now accelerate efforts to secure Moorside.
My ambition remains – the country needs new nuclear as part of our low-carbon energy generation and Cumbria needs Moorside.”
Mrs Hayman, Workington MP and co-chair of All Party Parliamentary Group for Nuclear Energy, said: “This is truly terrible news, not just for Cumbria, but for the UK as a whole.
“For months now, I have been calling on the Government to back Moorside in the way that they’ve given their backing to other new nuclear projects across the country. But today’s announcement makes it clear that the Government just does not care about the future of West Cumbria.
“The Government’s failure to offer support for the project has meant the loss of thousands of future jobs in West Cumbria, and that is utterly unacceptable.
“Quite simply, the people of West Cumbria have been betrayed by this Conservative government. They failed to even mention nuclear in their 2017 election manifesto. They have ignored all of my calls to intervene to safeguard the future of the Moorside project. And now they have shamefully betrayed the people of West Cumbria.
“This week, in my role as co-chair of the all party group for nuclear energy, I’m in China meeting with senior representatives of China General Nuclear Power Group. I will be exploring whether they may be interested in taking an interest in the development of new nuclear power in West Cumbria in some shape or form.
“I will continue to fight for vital jobs and investment in West Cumbria, even if the Government has no interest in our community.”
NuGen boss Tom Samson revealed the collapse of the Moorside project on Cumbria’s economy and communities was his greatest disappointment.
In a lengthy statement, Mr Samson expressed his desire to see another project come forward to fill the void left by his company’s demise. Praising the dedication of NuGen staff and the commitment from Toshiba, Mr Samson said: “The most significant aspect of my disappointment is related to the impact this will have on Cumbria.
“NuGen has been intrinsically linked with future opportunity and prosperity in Cumbria. The transformational economic effects of Moorside on local education, apprenticeships, jobs, regional infrastructure, supply chain growth, entrepreneurialism and aspirational opportunity are enormous.”