Future of NuGen nuclear project in jeopardy as Toshiba may pull out

The future of one of the UK's biggest nuclear power stations has been thrown into doubt after Toshiba's plans to pull out of the £10-billion project.

The Japanese giant has taken a 60-per cent stake in the planned NuGen nuclear project in Moorside, Cumbria, but now plans to withdraw from its lead role in the venture, according to reports.

Toshiba, which had been hit by an accounting scandal, is saddled with a multi-billion dollar write-down on its US-based nuclear subsidiary, Westinghouse Electric.

It had been claimed that Toshiba overpaid by several billion dollars for another nuclear construction and services business.

Sources said the scale of the write-down, the details for which would be revealed on 14 February, could be around £4.8 billion.

According to commentators, if Toshiba were to pull out, it would throw into doubt the future of a key project in the UK's plans to replace ageing nuclear  reactors.

The NuGen project, built to supply power to around 6 million homes from 2025, cost over £10 billion to build.

The French energy firm Engie, which was the Japanese company's partner in the NuGen consortium, has long been seen keen on exiting the project and its chief executive had last year said that  the future did not lie in nuclear power.

According to Engie, along with Toshiba, it was seeking new investors, which were reported to include Korea Electric Power Corporation (Kepco), to finance the Moorside plant.

Senior industry figures had urged the government to start discussions with the South Koreans immediately to safeguard the power station in the event of Toshiba exiting NuGen.

''Any potential investor in that project is going to need to have very direct reassurance from the government; even if they are just starting an exploratory period, they are welcomed,'' said Tim Yeo, the chairman of the pro-nuclear group New Nuclear Watch Europe.