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Eon and RWE have confirmed that they will seek a buyer for the assets of their UK nuclear joint venture.

In a statement RWE said that that capital for major projects was at a premium for large scale projects with long lead times and payback periods, and that the nuclear phase out in Germany had taken its toll on capital budgets, leading to a change of plan.

“A strategic decision has therefore been made by both RWE and E.ON that they will not develop new nuclear power projects in the UK through the Horizon joint venture,” the firm said in a statement.

Energy minister Charles Hendry said: “EON and RWE’s withdrawal is clearly very disappointing, but the partners have clearly explained that this decision was based on pressures elsewhere in their businesses and not any doubts about the role of nuclear in UK’s energy future.

“The UK’s new nuclear programme is far more than one consortia and there remains considerable interest. Plans from EDF/Centrica and Nugen are on track and Horizon’s sites offer new players an excellent ready-made opportunity to enter the market.”