A question mark has been left over the future of the project after Toshiba – a joint owner of the development consortium NuGen – announced it was reviewing its overseas nuclear activities.
“It looks increasingly like bad business investments may have busted Toshiba’s role in a new nuclear facility at Moorside in Cumbria,” said GMB national secretary for energy Justin Bowden.
“The time is now right for the UK government to step up to the plate and fill any funding gaps to ensure this vital piece of infrastructure remains on track.”
Bowden said relying on foreign financing for infrastructure investment is “always fraught with risks” and that by guaranteeing funding the government would “push down the price we will all have to pay for the electricity it will produce”.
The union also called for the Nuclear Decommissioning Authority to be transformed into a new body called the Nuclear Development Authority, which would be tasked with ensuring the construction of “a fleet of new nuclear power stations”.
The NuGen consortium which is developing Moorside is joint owned by Japanese conglomerate Toshiba and French firm Engie. At a press conference on Friday, Toshiba president and chief executive Satoshi Tsunakawa announced that the company would “review” the future of its nuclear businesses outside Japan.
The group is facing a financial crisis due an undisclosed write down amounting to “several billion US dollars” resulting from the purchase of US nuclear construction firm CB&I Stone & Webster by its subsidiary Westinghouse. The plans for Moorside feature three AP1000 reactors supplied by Westinghouse, with a combined capacity of 3.4GW.
In January, it was reported that Toshiba was in talks with the UK government over public financing for the nuclear plant.
Former energy minister and chairman of the trade group New Nuclear Watch Europe Tim Yeo has told Utility Week that the project could be saved by investment from South Korean utility Kepco.
The firm was reported to be close to joining the development consortium in October, and in December the Times reported that its representatives had met with business and energy secretary Greg Clark.
Meanwhile, GMB has separately urged the government not to withdraw from Euratom until a “viable alternative” is in place. Plans for Britain to leave the nuclear alliance at the same as exiting the EU, were confirmed on Friday.
“There is no need to leave Euratom just because of Article 50,” said Bowden “It would be sensible to delay any changes to our membership of Euratom until arrangements are agreed to replace our membership with Euratom, that guarantee UK nuclear interests are protected to the benefit of everyone in the country.
“Britain must keep its powder dry until a replacement is in place that benefits the whole country.”