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Nuclear energy

UK Energy Giant in Talks to Build Major Power Plant Off Coast of Wales

Strategic Insights

— 2 min read

The UK government is in talks with a US energy giant to build a major power plant off the coast of Wales, as Sir Keir Starmer throws his support behind a nuclear renaissance in Britain. Westinghouse, which is also pursuing a US nuclear expansion under Donald Trump, is presenting plans for at least two large reactors at Wylfa, in the Isle of Anglesey. The project, which could power several million homes, would be similar in size to Hinkley Point C and Sizewell C, and could come online in the mid-2030s at a fraction of the cost.

Key Takeaways:

  • Westinghouse is in talks with the UK government to build a major power plant off the coast of Wales, with plans for at least two large reactors at Wylfa, Isle of Anglesey.
  • The project could power several million homes and come online in the mid-2030s, similar in size to Hinkley Point C and Sizewell C.
  • The Westinghouse plant would use its AP1000 reactors, which could be built for a similar price to the 10 reactors Westinghouse wants to build in the US for Trump's administration, at $7.5bn (£5.5bn) per reactor.
  • The total cost of the project would be around £22bn for a 4.4GW plant at Wylfa, compared to the £40bn expected cost of the 3.2GW plant proposed at Sizewell.
  • The project would likely use the regulated asset base (RAB) model, which would let developers recover some of their investment during construction through a levy on consumer bills.
  • South Korean engineering giant Hyundai is being lined up as a potential partner to manage the project's construction.
  • The project marks a shift in the government's thinking, from Labour's initial review of the previous Conservative government's commitment to a Wylfa nuclear plant.
  • The Prime Minister has thrown his weight behind nuclear as a way to "bring down bills for millions of people across the country" and announced £14bn for Sizewell C's construction last week.

Statistics:

  • The Westinghouse plant would have a capacity of 2.2GW (two reactors x 1.1GW each).
  • The estimated cost of the project would be around £22bn for a 4.4GW plant at Wylfa.
  • The company is bidding to build 10 reactors in the US for Trump's administration at a cost of $75bn.
  • The company's last US plant, at Vogtle, Georgia, cost $17bn per reactor and contributed to Westinghouse's bankruptcy in 2017.
  • Rolls-Royce's SMRs could be built at Wylfa or Oldbury-on-Severn in Gloucestershire, with a location to be chosen.

Sources:

  • "UK energy giant in talks to build major power plant off coast of Wales" (The Telegraph)
  • "Westinghouse to build 10 US nuclear reactors as part of Trump's $75bn plan" (The Financial Times)
  • "Rolls-Royce eyes UK nuclear market with small modular reactors" (BBC News)
  • "Westinghouse claims nuclear reactors can be built at a fraction of the cost" (The Times)

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