ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Atal Pension Yojana rule change: Big setback for taxpayers - know how it will impact your savings
  • Home loans, EMIs to get more expensive: Now, this PSU bank hikes interest rates by .20%
  • Mask mandatory in Delhi as Covid-19 cases rise again: Check new rules and penalty
  • US inflation data: Break on 40-year peak, global markets rally - key highlights
  • Microsoft layoffs 2022: IT giant sacks around 200 more employees as recession fears rise
Read in App
Business News » World News

Hitachi halts UK nuclear project as energy supply crunch looms

Japan`s Hitachi Ltd put a $28 billion nuclear power project in Britain on hold on Thursday, dealing a blow to the country`s plans for the replacement of ageing plants.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Hitachi halts UK nuclear project as energy supply crunch looms
Japan`s Hitachi Ltd put a $28 billion nuclear power project in Britain on hold on Thursday. Image source: Reuters

Japan`s Hitachi Ltd put a $28 billion nuclear power project in Britain on hold on Thursday, dealing a blow to the country`s plans for the replacement of ageing plants.

Hitachi`s UK unit Horizon Nuclear Power failed to find private investors for its plan to build a plant at Wylfa in Anglesey, Wales, which was expected to provide about 6 percent of Britain`s electricity.

"We`ve made the decision to freeze the project from the economic standpoint as a private company," Hitachi said, adding it had booked a write-down of 300 billion yen ($2.8 billion).

Chief executive Toshiaki Higashihara said Hitachi could seek to withdraw completely from the project and sell the Horizon unit, depending on discussions with the British government.

Hitachi shares have risen 13 percent since Japanese media first reported the possible suspension last week.

The Japanese company had urged the UK government to boost financial support for the planned power station.

Higashihara, however, denied turmoil over Britain`s impending exit from the European Union had any impact on Hitachi`s decision to freeze the project. People close to the matter had previously said it had limited the government`s capacity to devise plans.

The withdrawal of the Japanese conglomerate could leave the nuclear newbuild industry open to Russian and Chinese state-owned companies as Western private firms struggle to compete.

China`s General Nuclear Services, an industrial partnership between China General Nuclear Power Corp (CGN) and French utility EDF, plans to make a number of investments in Britain’s nuclear power sector, most notably the Hinkley Point C project in southwest England.

China`s CGN told Reuters it would bring forward plans to build a nuclear plant in Bradwell, eastern England, helping to plug a potential supply gap.OTHER OPTIONS

British Energy Secretary Greg Clark said the government would explore different options for funding new nuclear plants, as costs for renewable energy had fallen so sharply it was difficult to justify higher subsidies.

One option is a regulated asset-based model, under which investors receive some of the funding for projects as they are developed, rather than the contract-for-difference model, which provides funding only when electricity generation has begun.

The government will give an update on this assessment during summer.

Britain wants new nuclear plants to help replace its ageing fleet of nuclear and coal plants coming offline in the 2020s, but high up-front costs have deterred construction.

Another Japanese firm, Toshiba Corp, scrapped its British NuGen project last year after its U.S. reactor unit Westinghouse went bankrupt and it failed to find a buyer.

In total, the two Japanese projects had aimed to add some 9.6 gigawatts (GW) to UK electricity capacity. Horizon had planned to build in total at least 5.8 GW of new capacity at the Wylfa site and in south Gloucestershire, and Toshiba’s NuGen was expected to add around 3.8 GW with three reactors.

Horizon Nuclear Power said it could resume development at Anglesey in the future. The project, which was slated for completion in the late 2020s, had approval for the nuclear reactor design but had not yet started construction.

The firm said it would begin consultations with existing staff. The plant would have employed 850 people once operational, with construction workforces of up to 9,000.

Mycle Schneider, publisher of the World Nuclear Industry Status Report, said the Hitachi decision was a consequence of changing energy economics.

The investment would not even be able to compete with unsubsidised offshore wind, the most expensive renewable energy technology, Schneider said.

"Time for the UK government to come up with a plan B," Schneider added.

($1 = 108.9300 yen)          

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Hitachi
Written By: Reuters
Updated: Thu, Jan 17, 2019
09:15 pm
Reuters
RELATED NEWS
SHAPING CUTTING EDGE MOBILITY AS INDIA’S NEXT GROWTH ENGINE SHAPING CUTTING EDGE MOBILITY AS INDIA’S NEXT GROWTH ENGINE
'POWERING' INDIA TO A GREENER FUTURE 'POWERING' INDIA TO A GREENER FUTURE
CCI approves proposed combination for forming Honda Motor, Hitachi joint venture CCI approves proposed combination for forming Honda Motor, Hitachi joint venture
Hitachi Vantara names ex-Cognizant executive Gajen Kandiah as CEO Hitachi Vantara names ex-Cognizant executive Gajen Kandiah as CEO
Hitachi, Microsoft ink multi-year deal to boost digital transformation Hitachi, Microsoft ink multi-year deal to boost digital transformation

LATEST NEWS

HZL stake sale: Six merchant bankers in fray to buy for government's share

Industry says new digital lending norms to help them scale up, become more responsible

Atal Pension Yojana rule change: Big setback for taxpayers - know how it will impact your savings

Apple iPhone 14 launch - Big development! Check latest updates, expected release date and price

LIC offloads 2% stake in this blue chip company, stock slides - Details

Debock Industries Ltd commences acquisition of Granite Mines - What it said in exchange filing

Aamir Khan Movie Laal Singh Chaddha Review By Taran Adarsh: DISAPPOINTS! Lacks captivating screenplay, fire in totality - 2 star rating

Delhivery share price falls almost 14% in 3 straight sessions amid poor Q1 show – know what brokerage says

Rakesh Jhunjhunwala portfolio stock: This Tata Group company's share hits 5-month high – brokerages recommend this

Raksha Bandhan 2022 correct, best date and time: Rakhi on 11 Aug vs 12 Aug? Today? Tomorrow? Shubh Muhurat, benefits, harms - All confusion cleared

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV