Competing with ever cheaper renewable energy schemes, Japan’s Hitachi Ltd. has suspended work on its U.K. nuclear power program after failing to strike a financial deal with the government. Hitachi’s wholly owned project company Horizon Nuclear Power will mothball work on two Advanced Boiling Water Reactor plants totaling 5,800 MW at Wylfa Newydd, North Wales, and Oldbury-on-Severn, South Gloucestershire, England. The Welsh project was estimated to cost about $20 billion. The write-off accrued will be $2.8 billion.
The government offered to provide all required debt to complete construction and to secure a strike price for energy generated of $96.8 per megawatt hour, which was 19% less than the figure agreed for the Hinkley Point C nuclear plant three years ago.
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