NuGeneration Limited (NuGen) has signed a co-operation agreement with HM Treasury to promote financing for a new nuclear power station at Moorside, West Cumbria.
The agreement establishes a process to enable access to the UK Guarantee Scheme. The UK Guarantee Scheme was introduced in 2012 to accelerate investments in major infrastructure projects, and is a key component of any future financing structure for new low-carbon power plants.
NuGen and HM Treasury will work together to see how the Scheme can support arrangement of external project finance for Moorside, set to be the UK’s largest new nuclear power station project.
The Chancellor of the Exchequer, George Osborne, said:
“We’re happy to have signed this agreement with NuGen. Investment in a new generation of civil nuclear power is part of our long term economic plan to provide Britain with the energy it needs for decades to come.”
“We’ve already done a lot to support new investment through our changes to the planning regime, the Generic Design Approval process and reforms to the electricity market. The Guarantee Scheme is another way in which we can help companies to make the huge investment that building new nuclear power involves.”
Sandy Rupprecht, Chief Executive of NuGen, welcomed the news.
“The signing of this co-operation agreement with HM Treasury is another demonstration of NuGen’s forward momentum as we power forward with our Moorside project in West Cumbria.”
NuGen, supported by its parent companies, Toshiba and GDF SUEZ, is taking forward the project, which will see three Westinghouse AP1000® reactors built on land to the north and west of the Sellafield complex in West Cumbria.
The first reactor is expected to be connected to the grid by the end of 2024 – with all three providing 3.4 GW of power by the end of 2026. The development will be the largest new nuclear development in Europe – and the biggest nuclear output from a single UK power station.
NuGen expects to have the full range of licences and permissions in place for the development, ahead of a Final Investment Decision (FID) in 2018.