E.ON, RWE quit UK nuclear venture

Gloucester, UK - E.ON and RWE npower have simultaneously withdrawn from Horizon Nuclear Power - their 50/50 joint venture, which had planned to deliver around 6,000MW of new nuclear power station capacity in the UK by 2025.

The Gloucester-based JV was focused on two projects, in Wylfa and Oldbury, which were together expected to cost over £15 billion.

E.ON said the decision followed a strategic review of the projects and that new owners/investors were now being sought for Horizon. Citing financial constraints, the group said it would now focus investment on other strategic projects in the UK.

Nuclear power requires “very long term and large investment,” explained Dr Tony Cocker, chief executive of E.ON UK. “We believe that for the right company Horizon remains an attractive project - but sadly, at this time, not for us.”

Since the formation of Horizon in 2009, the global economic crisis has put capital for major projects at a premium - reducing the attractiveness of nuclear power projects, which have very long lead times and payback periods. The Fukushima accident and Germany’s subsequent decision to accelerate its nuclear phase has also led to a reappraisal of priorities by Horizon’s backers.

“We remain convinced that Horizon’s development projects represent excellent sites for new nuclear power stations in the UK,” said RWE npower CEO Volker Beckers.

“Because of the strength of support for our development work, particularly on the Island of Anglesey, we continue to believe that nuclear power has an important role to play in the UK’s future energy mix,” added Beckers.

“We are therefore looking to ensure that work on development, including grid connection, can be taken up quickly by other potential investors.”