NuGeneration
| Company type | Joint venture (former) |
|---|---|
| Industry | Nuclear power |
| Founded | February 2009 |
| Defunct | December 23, 2021 |
| Fate | Liquidated |
| Headquarters | Manchester , United Kingdom |
Area served | United Kingdom |
| Products | Nuclear power station development (Moorside project) |
NuGeneration (NuGen) was an enterprise established to construct a new nuclear power station in proximity to the Sellafield site within the United Kingdom. The intended location for the Moorside project lies to the northwest of Sellafield. On 8 November 2018, Toshiba declared its decision to withdraw and proceed with the liquidation of NuGen.
History
Established in February 2009, NuGen originated as a joint venture involving ENGIE (previously known as GDF Suez), Iberdrola, and Scottish and Southern Energy (SSE), with ENGIE and Iberdrola each holding 37.5% stakes, and SSE possessing 25%.
The company aimed to develop a nuclear power plant with a capacity of up to 3.6GW adjacent to Sellafield. In October 2009, NuGen secured an option to acquire land near Sellafield from the Nuclear Decommissioning Authority for £70 million, setting targets for a final investment decision by 2015 and operational commencement by 2023. The initial reactor choices included either two Areva 1,650 MWe EPR units or three Westinghouse 1,100 MWe AP1000 reactors.
In September 2011, SSE withdrew from the consortium, leading ENGIE and Iberdrola to increase their holdings equally to 50% each.
Westinghouse ownership
In December 2013, Toshiba, through its subsidiary Westinghouse, agreed to acquire Iberdrola’s 50% stake in NuGen for £85 million and intended to purchase part of ENGIE’s shares to reach a controlling interest of 60%. This transition favored Westinghouse’s AP1000 reactor design, targeting initial operation by 2024.
By June 2014, Toshiba and ENGIE announced plans to construct three AP1000 reactors at Moorside with projected costs exceeding £10 billion. Construction was slated to begin in 2020 with operations anticipated in 2024. Sandy Rupprecht, previously leading AP1000 development, was appointed CEO of NuGen. The final investment decision was expected in 2018.
In 2015, NuGen moved its headquarters to Manchester. That July, it secured approximately 200 hectares near Sellafield that had been under option.
The AP1000 design required approval from the Office for Nuclear Regulation (ONR), initially expected by March 2017. However, by late 2016, ONR reported substantial delays in their assessment process.
Toshiba’s financial struggles in 2016 led to reports indicating plans to divest its stakes in Westinghouse and NuGen over time, although Toshiba reaffirmed its commitment to the project. Meanwhile, Korea Electric Power Corporation (KEPCO), known for constructing the APR-1400 reactor, showed interest in acquiring Toshiba’s 60% share contingent on certain conditions.
On 29 March 2017, Toshiba filed for Chapter 11 bankruptcy protection for Westinghouse following $9 billion losses related to U.S. AP1000 projects. Subsequently, on 4 April 2017, ENGIE sold its remaining 40% stake in NuGen to Toshiba for $138 million, making Toshiba the sole proprietor. A strategic review of the Moorside project commenced, including potential participation from KEPCO.
Proposed Kepco ownership
In December 2017, Korea Electric Power Corporation (KEPCO) was announced as the preferred bidder to acquire NuGen with a target completion early in 2018. KEPCO planned to develop APR-1400 reactors at the site, which would require undergoing an Office for Nuclear Regulation Generic Design Assessment.
By July 2018, KEPCO’s status as preferred bidder was revoked. In September 2018, NuGen revealed plans to reduce its workforce by around 60%, with remaining personnel concentrating on efforts to sell the project.
Liquidation
On 8 November 2018, Toshiba exited the venture and proceeded with the dissolution of NuGen. The entity was formally closed on 23 December 2021.
See also
- Economics of new nuclear power plants
- Nuclear power in the United Kingdom
- Energy use and conservation in the United Kingdom