NuGeneration

NuGeneration Limited
IndustryNuclear power
Founded2009
Defunct23 December 2021
FateLiquidation
HeadquartersManchester, UK
ProductsElectricity
OwnerToshiba
Websitewww.nugeneration.com

NuGeneration (NuGen) was a company that planned to build a new nuclear power station nearby the Sellafield nuclear site in the United Kingdom. The proposed site was called Moorside, and is to the north and west of Sellafield. On 8 November 2018, Toshiba announced their withdrawal from the project and intent to liquidate NuGen.[1]

History

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NuGen was established in February 2009 as a joint venture between ENGIE (formerly GDF Suez), Iberdrola and Scottish and Southern Energy (SSE). The initial holdings in NuGen were ENGIE and Iberdrola each with 37.5% and SSE with 25%.

The company had announced plans to build a new nuclear power station of up to 3.6GW capacity adjacent to the Sellafield complex in North West England. In October 2009, it purchased an option to acquire land around Sellafield from the Nuclear Decommissioning Authority for £70 million. The company planned to make a final investment decision in 2015 with a view to starting production in 2023.[2] When it began, NuGen evaluated building either two Areva 1,650 MWe EPR or three Westinghouse 1,100 MWe AP1000 reactors.[3]

In September 2011, SSE announced that it had left the consortium, with ENGIE and Iberdrola buying SSE out to increase their stakes to 50% each.[4]

Westinghouse ownership

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In December 2013, Toshiba, through its Westinghouse subsidiary, agreed to pay £85 million for Iberdrola's 50% share of NuGen.[5] Toshiba also intends to purchase part of ENGIE's stake, giving it 60% ownership.[6] The change in ownership will cause the chosen new build reactor to the Westinghouse 1,100 MWe AP1000,[7] with a target first operation date of 2024.[6]

In June 2014, Toshiba and ENGIE announced plans for three AP1000s at Moorside at a cost of at least £10 billion. The build was planned to start in 2020, with a target of having the first reactor operating in 2024. Sandy Rupprecht, who had headed development of the Westinghouse AP1000 reactor, would be the new chief executive of NuGen.[8] The final investment decision was due for 2018.[9]

In 2015, NuGen re-located its headquarters to Manchester.[10] In July 2015, NuGen purchased the land near Sellafield it had an option on, approximately 200 hectares, for an undisclosed sum.[11]

The AP1000 design requires Office for Nuclear Regulation (ONR) Generic Design Assessment, which was initially planned to finish in March 2017. However as of November 2016 the ONR noted there was a "very large amount of assessment to complete with issues still emerging". Slippage of the completion date is likely.[12][13]

In February 2017 the Japanese newspaper Asahi Shimbun reported that Toshiba, following financial difficulties in 2016, wished to sell its shares in Westinghouse and NuGen over the next few years,[14][15] although Toshiba stated to remain committed to the project.[16] Korea Electric Power Corporation, who build the APR-1400 reactor, expressed an interest in purchasing Toshiba’s 60% share of NuGen, subject to suitable sale conditions.[17][18]

On 29 March 2017 Toshiba placed Westinghouse in Chapter 11 bankruptcy because of $9 billion of losses from its nuclear reactor construction projects, mostly the construction of four AP1000 reactors in the United States.[19] Following on from this, on 4 April 2017, ENGIE exercised its contractual right to sell its 40% stake in NuGen to Toshiba for $138 million, leaving Toshiba as sole owner.[20] A strategic review of the Moorside project is being conducted, including discussions about the involvement of South Korean government backed Korea Electric Power Corporation.[21][22]

Proposed Kepco ownership

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In December 2017 Korea Electric Power Corporation (Kepco) was announced as the preferred bidder to acquire NuGen, with a target date for the purchase of early 2018. Kepco would aim to build APR-1400 reactors, which would require an Office for Nuclear Regulation Generic Design Assessment.[23]

In July 2018 Kepco’s preferred bidder status was terminated, and in September 2018 NuGen announced that it would reduce staffing by 60% with remaining staff focusing on the sale of the project.[24]

Liquidation

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On 8 November 2018, Toshiba announced they had withdrawn from the project and had liquidated NuGen.[1][25]

NuGen was dissolved on 23 December 2021.[26]

See also

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References

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  1. ^ a b Vaughan, Adam (8 November 2018). "UK nuclear power station plans scrapped as Toshiba pulls out". The Guardian. Retrieved 24 November 2018.
  2. ^ "The cautious strategy of the third UK new-build consortium". Nuclear Engineering International. Archived from the original on 2 April 2012.
  3. ^ "FAQ - Which reactor design does NuGen favour?". NuGeneration. Archived from the original on 7 January 2014. Retrieved 3 July 2013.
  4. ^ "Scottish and Southern Energy ends nuclear power plan". BBC.
  5. ^ "Iberdrola to sell stake in NuGen nuclear consortium to Toshiba". The Guardian. Reuters. 23 December 2013. Retrieved 31 December 2013.
  6. ^ a b "First AP1000 at Moorside online by 2024, Westinghouse says". Nuclear Engineering International. 14 January 2014. Retrieved 15 January 2014.
  7. ^ "Toshiba nears majority stake in UK nuclear project- CEO". Reuters. 26 December 2013. Archived from the original on 5 March 2016. Retrieved 31 December 2013.
  8. ^ Stanley Reedjune (30 June 2014). "Toshiba and GDF Suez Push Ahead on British Nuclear Plant". New York Times. Retrieved 30 June 2014.
  9. ^ "Nuclear deal boosts Cumbria's Moorside plant plans". BBC. 30 June 2014. Retrieved 30 June 2014.
  10. ^ "NuGen is on the move..." NuGeneration. 2 February 2015. Retrieved 28 March 2016.
  11. ^ "NuGen acquires land for Moorside project". World Nuclear News. 14 July 2015. Retrieved 26 July 2015.
  12. ^ "UK regulator reports 'slippage' in assessment of AP1000 design". World Nuclear News. 8 January 2016. Retrieved 14 February 2017.
  13. ^ "UK regulators question Westinghouse's target date for AP1000 GDA". World Nuclear News. 28 November 2016. Retrieved 14 February 2017.
  14. ^ "Toshiba Says Nuclear Writedown May Reach Billions of Dollars". Bloomberg. 27 December 2016. Retrieved 11 February 2017.
  15. ^ "Toshiba wants to dump shares in loss-making Westinghouse". The Asahi Shimbun. 2 February 2017. Retrieved 11 February 2017.
  16. ^ "Embattled Toshiba 'remains committed' to new nuclear plant in Cumbria - Press and Journal". Press and Journal. 14 February 2017. Retrieved 26 February 2017.
  17. ^ "Korea eyes NuGen stake". Nuclear Engineering International. 26 March 2017. Retrieved 27 March 2017.
  18. ^ Ward, Andrew (3 April 2017). "Britain turns to South Korea to salvage Moorside nuclear project". Financial Times. Retrieved 23 April 2017.
  19. ^ Fuse, Taro (24 March 2017). "Toshiba decides on Westinghouse bankruptcy, sees $9 billion in charges: sources". Reuters. Retrieved 25 March 2017.
  20. ^ Williams, Diarmaid (4 April 2017). "NuGen nuclear project facing uncertainty as Engie exits". POWER. Retrieved 4 April 2017.
  21. ^ "National Grid puts Moorside plans on hold". World Nuclear News. 16 May 2017. Retrieved 29 August 2017.
  22. ^ Ambrose, Jillian (28 June 2017). "Kepco confirms talks with Toshiba over UK nuclear - but only with its own reactors". Daily Telegraph. Retrieved 29 August 2017.
  23. ^ "Kepco named preferred bidder for UK's NuGen". World Nuclear News. 7 December 2017. Retrieved 8 December 2017.
  24. ^ "UK's NuGen cuts staff at planned Moorside". Nuclear Engineering International. 12 September 2018. Retrieved 14 September 2018.
  25. ^ "Toshiba Nugen Liquidation Announcement" (PDF). Toshiba Corporation. Retrieved 9 November 2018.
  26. ^ "Final Gazette Notice" (PDF). Companies House. Retrieved 7 January 2022.
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