Toshiba will “consider” a continued role in the development of the beleaguered Moorside nuclear plant in Cumbria, so long as it can avoid any involvement in construction.
The Japanese conglomerate said it will seek to sell off shares in the project “as planned from the beginning” as it reported its preliminary financial results for the third quarter of 2016.
The fate of Moorside has been unclear since Toshiba announced earlier this year that it was reviewing its overseas nuclear activities in the midst of a financial meltdown. The group said it expected to take a write-down amounting “several billion” dollars relating to the acquisition of a US nuclear construction business by its subsidiary Westinghouse.
Toshiba has now revealed the value of the impairment at ¥720 billion ($6.3 billion or £5 billion). Having completed the review of overseas nuclear operations, the company said it will seek to “exclude risk inherent on construction work and focus on equipment supply and engineering” in future.
Toshiba owns a 60 per cent share in the NuGen consortium which is developing the 3.4GW Moorside plant. French firm Engie owns the other 40 per cent but is reportedly keen to extricate itself from the project.
Former energy minister and chairman of the trade body New Nuclear Watch Europe has told Utility Week mooted investment from South Korean utility Kepco could save the £10 billion project from collapse.
Commenting on today’s update, NuGen chief executive Tom Samson said: “The project has made significant progress since Toshiba took over as major shareholder in 2014. The site has already been proven as suitable for three Westinghouse AP1000 reactors, two phases of consultation have found the public overwhelmingly supportive of the need for new nuclear and have helped shape the plans for Moorside.”
Samson added that the UK government is “supportive” of NuGen and remains firmly committed to new nuclear as a key component to decarbonisation and security of supply.
Toshiba president and chief executive Satoshi Tsunakawa has previously said that the company is “re-examining its relationship” with Westinghouse, which it bought from the UK government in 2006 for $5.4 billion. At a press conference in Tokyo today, Toshiba indicated that it is willing to sell Westinghouse to resolve its cash crisis, Reuters reported.
The company also revealed that its chairman Shigenori Shiga is to step down from his post. The GMB union said the resignation must not prevent Moorside from going ahead.
“Toshiba’s chairman Shigenori Shiga falling on his sword underlines the gravity of the company’s situation but must not be allowed to jeopardise the future of Moorside and put the security of this country’s energy supply in any more of a precarious situation than it already is,” said GMB national secretary for energy Justin Bowden.
It reiterated a call for the government bankroll the project. “It is time for government to show leadership and take over the reins at Moorside,” added Bowden. “The fiasco with Toshiba shows exactly why relying on foreign companies for our energy needs is just plain stupid.”