Toshiba seeks public financing for nuclear plant in Cumbria: reports

The Japanese conglomerate Toshiba is seeking public financing for the Moorside nuclear project in Cumbria, the Financial Times has reported.

The company is facing financial difficulties due a large write-down on a nuclear construction firm bought by its US nuclear arm Westinghouse, and is looking for ways to fill the hole in its balance sheet.

Public investment in the 3.8GW project is being considered by the UK government, according to several sources quoted by the paper who are “involved in the process or briefed on the matter”.

However, a Whitehall official also told the paper it was “premature” to talk about state involvement. “We are working closely with a number of developers on proposed new nuclear projects in the UK, as they develop their plans,” a spokesman for the Department for Business, Energy and Industrial Strategy said in a statement.

The sources said a faster way for Toshiba to secure the future of the project would be to sell part of its stake in NuGen – the consortium developing the Moorside project. Toshiba owns 60 per cent and the rest is owned by French firm Engie.

In September, it was revealed that South Korean utility Kepco was in talks with Toshiba and Engie about buying into the consortium. “Talks have been moving slowly but the financial difficulties facing Toshiba will hopefully focus minds on getting a deal done,” a source with knowledge of the talks was quoted as saying.

“NuGen’s shareholders are committed to the development of the Moorside Project”, said a spokesman for the consortium. Toshiba has yet to respond to a request for comment.

Last month it was reported that the government was in talks over the public financing of the Wylfa Newydd nuclear plant being developed by Horizon Nuclear Power in North Wales.