Horizon Nuclear Power

The company was established in 2009 as an E.ON UK and RWE Npower joint venture. The company announced its intention to install about 6,000{{nbsp}}MWe of new nuclear capacity adjacent to the existing Wylfa and Oldbury nuclear power stations.{{cite web |url=http://www.horizonnuclearpower.com/faq_oldbury.php |title=FAQs: OLDBURY |publisher=Horizon Nuclear Power |access-date=11 November 2010 |archive-date=12 July 2011 |archive-url=https://web.archive.org/web/20110712220030/http://www.horizonnuclearpower.com/faq_oldbury.php |url-status=live }}{{cite web |url=http://www.horizonnuclearpower.com/faq_wylfa.php |title=FAQs: WYLFA |publisher=Horizon Nuclear Power |access-date=11 November 2010 |archive-date=12 July 2011 |archive-url=https://web.archive.org/web/20110712220157/http://www.horizonnuclearpower.com/faq_wylfa.php |url-status=live }} Horizon initially evaluated building either Areva 1,650{{nbsp}}MWe EPR reactors or Westinghouse 1,100{{nbsp}}MWe AP1000 reactors between 2020 and 2024.{{cite news |url=http://www.businessgreen.com/bg/news/1803109/rwe-eon-edf-win-nuclear-auction |title=RWE/E.ON and EDF win nuclear auction |first=James |last=Murray |work=BusinessGreen |date=30 April 2009 |access-date=11 November 2010 |archive-date=2 June 2011 |archive-url=https://web.archive.org/web/20110602143824/http://www.businessgreen.com/bg/news/1803109/rwe-eon-edf-win-nuclear-auction |url-status=live }}{{cite news |url=http://www.ft.com/cms/s/0/be0f9baa-c4d6-11e0-9c4d-00144feabdc0.html |title=Doubts raised over UK energy investments |first1=Sylvia |last1=Pfeifer |first2=David |last2=Blair |newspaper=Financial Times |date=12 August 2011 |access-date=28 September 2011 |archive-date=20 December 2011 |archive-url=https://web.archive.org/web/20111220091042/http://www.ft.com/cms/s/0/be0f9baa-c4d6-11e0-9c4d-00144feabdc0.html |url-status=live }}

In March 2012, E.ON and RWE Npower placed Horizon up for sale as a going concern.{{cite news |url=https://www.bbc.co.uk/news/world-17546420 |title=RWE and E.On halt UK nuclear plans at Wylfa and Oldbury |work=BBC News |date=29 March 2012 |access-date=29 March 2012 |archive-date=29 March 2012 |archive-url=https://web.archive.org/web/20120329100148/http://www.bbc.co.uk/news/world-17546420 |url-status=live }}{{cite news |url=https://www.bbc.co.uk/news/business-17550282 |title=Is the UK's nuclear future in jeopardy? |first=Robert |last=Peston |work=BBC News |date=29 March 2012 |access-date=29 March 2012 |archive-date=31 March 2012 |archive-url=https://web.archive.org/web/20120331194205/http://www.bbc.co.uk/news/business-17550282 |url-status=live }}{{cite news |url=https://www.telegraph.co.uk/finance/newsbysector/energy/9342680/Chinese-companies-bid-to-build-new-UK-nuclear-power-plants.html |title=Chinese companies bid to build new UK nuclear power plants |first=Emily |last=Gosden |newspaper=Daily Telegraph |date=21 June 2012 |access-date=19 June 2012 |archive-date=19 June 2012 |archive-url=https://web.archive.org/web/20120619232519/http://www.telegraph.co.uk/finance/newsbysector/energy/9342680/Chinese-companies-bid-to-build-new-UK-nuclear-power-plants.html |url-status=live }} One bidder was a joint venture of China Guangdong Nuclear Power Group and the China National Nuclear Corporation.{{cite news |url=http://www.chinadaily.com.cn/business/overseascnep/2012-11/03/content_15872014.htm |title=Nuke companies pursue future power abroad |author=Li Xiang |newspaper=China Daily |date=3 November 2012 |access-date=2 October 2013 |archive-date=5 October 2013 |archive-url=https://web.archive.org/web/20131005012912/http://www.chinadaily.com.cn/business/overseascnep/2012-11/03/content_15872014.htm |url-status=live }}

However, on 29 October 2012, it was announced that Hitachi would buy Horizon for £696 million,{{cite press release |url=https://www.horizonnuclearpower.com/files/downloads/News/E_ON%20UK%20and%20RWE%20npower.pdf |title=RWE and E.ON announce sale of Horizon Nuclear Power to Hitachi Ltd |author=E.On and RWE |date=30 October 2012 |access-date=25 August 2020 |archive-date=25 August 2020 |archive-url=https://web.archive.org/web/20200825182138/https://www.horizonnuclearpower.com/files/downloads/News/E_ON%20UK%20and%20RWE%20npower.pdf |url-status=live }} and the sale was completed on 26 November 2012.{{cite news |url=https://www.bbc.co.uk/news/uk-wales-north-west-wales-20495200 |title=Wylfa B: Hitachi takes over Horizon nuclear project |publisher=BBC |date=26 November 2012 |access-date=8 December 2012 |archive-date=29 November 2012 |archive-url=https://web.archive.org/web/20121129045509/http://www.bbc.co.uk/news/uk-wales-north-west-wales-20495200 |url-status=live }}

Hitachi intended to build two to three 1,350{{nbsp}}MWe Advanced Boiling Water Reactors (ABWR) on each site, but first required a Generic Design Assessment (GDA) for the ABWR by the Office for Nuclear Regulation.{{cite news |url=http://www.ft.com/cms/s/0/800422d6-21dc-11e2-b5d2-00144feabdc0.html |title=Hitachi agrees UK nuclear purchase |first1=Guy |last1=Chazan |first2=Jim |last2=Pickard |newspaper=Financial Times |date=29 October 2012 |access-date=30 October 2012 |archive-date=1 November 2012 |archive-url=https://web.archive.org/web/20121101013516/http://www.ft.com/cms/s/0/800422d6-21dc-11e2-b5d2-00144feabdc0.html |url-status=live }}{{cite news |url=https://www.bbc.co.uk/news/business-20134735 |title=Hitachi buys UK nuclear project from E.On and RWE |work=BBC News |date=30 October 2012 |access-date=30 October 2012 |archive-date=30 October 2012 |archive-url=https://web.archive.org/web/20121030121142/http://www.bbc.co.uk/news/business-20134735 |url-status=live }}{{cite news |url=https://www.neimagazine.com/news/newsabwr-set-for-uk-design-assessment/ |title=ABWR set for UK design assessment |publisher=Nuclear Engineering International |date=16 January 2013 |access-date=25 August 2020 |archive-date=25 August 2020 |archive-url=https://web.archive.org/web/20200825182201/https://www.neimagazine.com/news/newsabwr-set-for-uk-design-assessment/ |url-status=live }} The assessment began in April 2013, with an agreement that the costs of the assessment would be covered by Hitachi-GE.{{cite news |url=http://www.world-nuclear-news.org/NN-UK_starts_ABWR_design_assessment-1004137.html |title=UK starts ABWR design assessment |publisher=World Nuclear News |date=10 April 2013 |access-date=22 April 2013 |archive-date=20 April 2013 |archive-url=https://web.archive.org/web/20130420090322/http://www.world-nuclear-news.org/NN-UK_starts_ABWR_design_assessment-1004137.html |url-status=live }} In August 2014, the proposed reactor type reached the third stage, out of four, in the GDA process.{{cite news | url=http://news.onr.org.uk/2014/08/hitachi-ge-design-for-new-nuclear-power-station-clears-first-regulatory-assessment-hurdle/ | title=Hitachi-GE UK ABWR progresses to GDA Step 3 | publisher=Office for Nuclear Regulation | date=28 August 2014 | access-date=8 April 2015 | archive-date=6 October 2015 | archive-url=https://web.archive.org/web/20151006063830/http://news.onr.org.uk/2014/08/hitachi-ge-design-for-new-nuclear-power-station-clears-first-regulatory-assessment-hurdle/ | url-status=live }}

In 2013, Horizon planned initial site work at Wylfa to begin in 2015, with building work starting in 2018 and generation starting in the mid-2020s.{{cite news |url=https://www.bbc.co.uk/news/uk-wales-north-west-wales-24601964 |title=Wylfa B nuclear power station: Housing concerns for workers |author=Chris Dearden |publisher=BBC |date=21 October 2013 |access-date=22 October 2013 |archive-date=22 October 2013 |archive-url=https://web.archive.org/web/20131022135507/http://www.bbc.co.uk/news/uk-wales-north-west-wales-24601964 |url-status=live }} However, later Horizon delayed the start of site work until after the GDA is completed.{{cite web |url=http://www.horizonnuclearpower.com/wylfa-newydd-faq?area=wylfa-faq |title=Wylfa Newydd - FAQs |publisher=Horizon Nuclear Power |access-date=16 February 2017 |archive-date=17 February 2017 |archive-url=https://web.archive.org/web/20170217062651/http://www.horizonnuclearpower.com/wylfa-newydd-faq?area=wylfa-faq |url-status=live }}

In January 2016, Hitachi announced a new UK company, Hitachi Nuclear Energy Europe, to lead a proposed joint venture with Bechtel and JGC Corporation, to cover the engineering, procurement and construction of Horizon's nuclear plants in the UK. Horizon Nuclear Power would continue to work on obtaining regulatory consents and making commercial arrangements.{{cite news |url=http://www.world-nuclear-news.org/C-Hitachi-enhances-UK-presence-ahead-of-ABWR-deployment-19011601.html |title=Hitachi enhances UK presence ahead of ABWR deployment |publisher=World Nuclear News |date=19 January 2016 |access-date=31 January 2016 |archive-date=21 January 2016 |archive-url=https://web.archive.org/web/20160121194433/http://www.world-nuclear-news.org/C-Hitachi-enhances-UK-presence-ahead-of-ABWR-deployment-19011601.html |url-status=live }}

However, later in the month Hiroaki Nakanishi, chairman and chief executive of Hitachi, expressed serious concerns to the Foreign Secretary Philip Hammond over financing the scheme, following EDF's difficulty in financing Hinkley Point C. Hitachi negotiated with the Department of Energy and Climate Change (DECC) on electricity price guarantees, called Contracts for Difference (CfD).{{cite news |url=https://www.telegraph.co.uk/finance/newsbysector/energy/12128405/Hinkley-Point-nuclear-fiasco-spooks-Hitachi-boss.html |title=Hinkley Point nuclear fiasco spooks Hitachi boss |author=Szu Ping Chan |newspaper=Daily Telegraph |date=30 January 2016 |access-date=31 January 2016 |archive-date=30 January 2016 |archive-url=https://web.archive.org/web/20160130214147/http://www.telegraph.co.uk/finance/newsbysector/energy/12128405/Hinkley-Point-nuclear-fiasco-spooks-Hitachi-boss.html |url-status=live }} The first project at Wylfa would be financed externally, with Hitachi only taking a minority stake.{{cite news |url=https://www.telegraph.co.uk/finance/newsbysector/energy/12156773/UK-new-nuclear-plan-will-fail-without-private-investors-says-Horizon-chief.html |title=UK new nuclear plan will fail without private investors, says Horizon chief |author=Emily Gosden |newspaper=Daily Telegraph |date=14 February 2016 |access-date=17 September 2016 |archive-date=29 April 2016 |archive-url=https://web.archive.org/web/20160429162115/http://www.telegraph.co.uk/finance/newsbysector/energy/12156773/UK-new-nuclear-plan-will-fail-without-private-investors-says-Horizon-chief.html |url-status=live }}

In May 2016, Duncan Hawthorne, previously CEO of Bruce Power in Canada, was appointed CEO of Horizon.{{cite news |url=http://www.world-nuclear-news.org/C-Horizon-CEO-outlines-fresh-challenge-for-new-nuclear-29061601.html |title=Horizon CEO outlines fresh challenge for nuclear |publisher=World Nuclear News |date=29 June 2016 |access-date=5 July 2016 |archive-date=1 July 2016 |archive-url=https://web.archive.org/web/20160701225936/http://www.world-nuclear-news.org/C-Horizon-CEO-outlines-fresh-challenge-for-new-nuclear-29061601.html |url-status=live }} In February 2017 Horizon contracted U.S. Exelon to provide expert staff to assist in developing Horizon's nuclear operating model.{{cite news |url=http://www.world-nuclear-news.org/NN-Horizon-forms-operating-partnership-with-Exelon-15011701.html |title=Horizon forms operating partnership with Exelon |publisher=World Nuclear News |date=15 February 2017 |access-date=16 February 2017 |archive-date=15 February 2017 |archive-url=https://web.archive.org/web/20170215181334/http://www.world-nuclear-news.org/NN-Horizon-forms-operating-partnership-with-Exelon-15011701.html |url-status=live }}

The ABWR GDA process was completed successfully in December 2017.{{cite news |url=http://www.world-nuclear-news.org/RS-Hitachi-GE-ABWR-design-cleared-for-use-in-UK-1412174.html |title=Hitachi-GE ABWR design cleared for use in UK |publisher=World Nuclear News |date=14 December 2017 |access-date=17 December 2017 |archive-date=14 December 2017 |archive-url=https://web.archive.org/web/20171214181829/http://www.world-nuclear-news.org/RS-Hitachi-GE-ABWR-design-cleared-for-use-in-UK-1412174.html |url-status=live }}

As of 2017, Horizon planned to build two ABWRs at each site, subject to finance and contract agreement.{{cite news |url=http://www.world-nuclear-news.org/NN-UK-ABWR-executives-chart-path-ahead-for-Horizon-15121701.html |title=UK ABWR executives chart path ahead for Horizon |publisher=World Nuclear News |date=15 December 2017 |access-date=17 December 2017 |archive-date=15 December 2017 |archive-url=https://web.archive.org/web/20171215191032/http://www.world-nuclear-news.org/NN-UK-ABWR-executives-chart-path-ahead-for-Horizon-15121701.html |url-status=live }} Horizon believed that the consensus of government and industry was that the Contract for Difference financing model used for Hinkley Point C nuclear power station, involving fully private sector financing, would not be used for subsequent nuclear plants, and discussions were held with government about alternative financing models.{{cite news |url=https://www.ft.com/content/088c1dd6-e40e-11e7-97e2-916d4fbac0da |title=Britain's next nuclear plant eyes new funding models |last=Ward |first=Andrew |newspaper=Financial Times |date=19 December 2017 |access-date=19 December 2017 |archive-date=22 December 2017 |archive-url=https://web.archive.org/web/20171222051817/https://www.ft.com/content/088c1dd6-e40e-11e7-97e2-916d4fbac0da |url-status=live }} Hawthorne, Horizon CEO, stated "We are an insurance policy for a long-term stable supply and there is a price for that certainty".{{cite news |url=http://www.world-nuclear-news.org/C-Horizon-CEO-says-Hinkley-deal-is-a-one-off-20121701.html |title=Horizon CEO says Hinkley model is a one-off |publisher=World Nuclear News |date=20 December 2017 |access-date=8 February 2018 |archive-date=8 February 2018 |archive-url=https://web.archive.org/web/20180208182842/http://www.world-nuclear-news.org/C-Horizon-CEO-says-Hinkley-deal-is-a-one-off-20121701.html |url-status=live }}

In December 2018, Hitachi's chairman stated they were struggling to find investors for the Wylfa plant. Later TV Asahi in Japan reported that the Wylfa scheme may be scrapped, resulting in an increase in the value of Hitachi's shares.{{cite news |url=https://www.theguardian.com/environment/2018/dec/10/uk-nuclear-plant-hitachi-wylfa-anglesey |title=UK's nuclear plans in doubt after report Welsh plant may be axed |last=Vaughan |first=Adam |newspaper=The Guardian |date=10 December 2018 |access-date=10 December 2018 |archive-date=10 December 2018 |archive-url=https://web.archive.org/web/20181210130841/https://www.theguardian.com/environment/2018/dec/10/uk-nuclear-plant-hitachi-wylfa-anglesey |url-status=live }}{{cite news |url=https://www.japantimes.co.jp/news/2018/12/16/business/corporate-business/hitachi-may-freeze-british-nuclear-project-due-swelling-costs/ |title=Hitachi may freeze British nuclear project due to swelling costs |newspaper=The Japan Times |date=16 December 2018 |access-date=17 December 2018 |archive-date=17 December 2018 |archive-url=https://web.archive.org/web/20181217014928/https://www.japantimes.co.jp/news/2018/12/16/business/corporate-business/hitachi-may-freeze-british-nuclear-project-due-swelling-costs/ |url-status=live }}

On 17 January 2019, Horizon announced that "it will suspend its UK nuclear development programme, following a decision taken by its parent company Hitachi".{{cite press release |url=http://www.hitachi.eu/en/press/horizon-suspends-uk-nuclear-new-build-activities |title=Horizon suspends UK nuclear new build activities |publisher=Hitachi |date=17 January 2019 |access-date=18 January 2019 |archive-date=19 January 2019 |archive-url=https://web.archive.org/web/20190119174329/http://www.hitachi.eu/en/press/horizon-suspends-uk-nuclear-new-build-activities |url-status=live }}{{cite news |url=https://www.theguardian.com/business/2019/jan/17/hitachi-set-to-scrap-16bn-nuclear-project-anglesey-wales |title=Hitachi scraps £16bn nuclear power station in Wales |last=Vaughan |first=Adam |newspaper=The Guardian |date=17 January 2019 |access-date=18 January 2019 |archive-date=18 January 2019 |archive-url=https://web.archive.org/web/20190118031418/https://www.theguardian.com/business/2019/jan/17/hitachi-set-to-scrap-16bn-nuclear-project-anglesey-wales |url-status=live }} The UK government had been willing to take a one-third equity stake in the project, to consider providing all the required debt financing, and to provide a Contract for Difference for the electricity generated at up to £75/MWh for 35 years. Greg Clark, minister for Business, Energy and Industrial Strategy, stated this was a "generous package of potential support that going beyond what any government had been willing to consider in the past". However this did not provide an adequate "economic rationality as a private enterprise" for Hitachi to proceed.{{cite news |url=http://www.world-nuclear-news.org/Articles/UK-unveils-financial-terms-it-offered-Hitachi |title=UK unveils financial terms it offered Hitachi |publisher=World Nuclear News |date=17 January 2019 |access-date=18 January 2019 |archive-date=17 January 2019 |archive-url=https://web.archive.org/web/20190117212225/http://www.world-nuclear-news.org/Articles/UK-unveils-financial-terms-it-offered-Hitachi |url-status=live }}{{cite news |url=https://www.bloomberg.com/opinion/articles/2019-01-18/hitachi-nuclear-exit-can-t-come-soon-enough |title=Hitachi Can't Cut Its Nuclear Bonds Soon Enough |author1=Anjani Trivedi |author2=David Fickling |publisher=Bloomberg |date=19 January 2019 |access-date=25 January 2019 |archive-date=26 January 2019 |archive-url=https://web.archive.org/web/20190126001113/https://www.bloomberg.com/opinion/articles/2019-01-18/hitachi-nuclear-exit-can-t-come-soon-enough |url-status=live }}

Hitachi had spent nearly £2 billion on Horizon since 2012, and the Wylfa ABWR development had been expected to cost about £15 billion.

Following the suspension, Horizon made most of its 380 staff redundant, retaining just a few site maintenance staff and those involved in governmental discussions about possible future funding of the development.{{cite news |url=http://www.world-nuclear-news.org/Articles/The-next-steps-for-Horizon |title=The next steps for Horizon |publisher=World Nuclear News |date=18 January 2019 |access-date=25 January 2019 |archive-date=24 January 2019 |archive-url=https://web.archive.org/web/20190124171902/http://www.world-nuclear-news.org/Articles/The-next-steps-for-Horizon |url-status=live }}

In April 2020 a director of Horizon stated that the future of next two nuclear builds, Wylfa and EDF's Sizewell C, depended on the government accepting the Regulated Asset Base (RAB) financial assistance model rather than the existing Contract for Difference support mechanism, which would allow developers to need less upfront private finance as some finance would be backed by end consumer billing.{{cite news |url=https://www.constructionnews.co.uk/civils/nuclear-power-wylfa-and-sizewell-cs-fate-is-aligned-07-02-2020/ |title=Nuclear power: Wylfa and Sizewell C 'fate is aligned' |last=Rowland |first=Miles |publisher=Construction News |date=7 April 2020 |access-date=30 April 2020 |archive-date=6 April 2020 |archive-url=https://web.archive.org/web/20200406202642/https://www.constructionnews.co.uk/civils/nuclear-power-wylfa-and-sizewell-cs-fate-is-aligned-07-02-2020/ |url-status=live }}

In June 2020 The Sunday Times reported that the U.S. government had warned Hitachi not to sell Horizon to Chinese companies for security reasons. Horizon responded there were no such plans, and stated "We don't comment on speculation. Our focus remains on securing the conditions necessary to restart this crucial project, which would bring transformative economic benefits to the region and play a huge role in helping deliver the UK's climate change commitments."{{cite news |url=https://www.japantimes.co.jp/news/2020/06/30/business/us-hitachi-uk-nuclear-china/ |title=U.S. warns Hitachi not to sell U.K. nuclear project to China |newspaper=The Japan Times |date=30 June 2020 |access-date=30 June 2020 |archive-date=30 June 2020 |archive-url=https://web.archive.org/web/20200630151358/https://www.japantimes.co.jp/news/2020/06/30/business/us-hitachi-uk-nuclear-china/ |url-status=live }}{{cite news |url=https://www.bbc.co.uk/news/uk-wales-politics-53212790 |title=Wylfa nuclear project: Donald Trump plea over site sale dismissed |work=BBC News |date=28 June 2020 |access-date=30 June 2020 |archive-date=29 June 2020 |archive-url=https://web.archive.org/web/20200629204511/https://www.bbc.co.uk/news/uk-wales-politics-53212790 |url-status=live }} Shortly after, in August, the FT reported that the British government and Hitachi have recently been in talks over the possibility of resumption of Horizon's operation.{{Cite web|title=Hitachi seeks to resurrect Welsh nuclear plant plans|url=https://www.ft.com/content/6ec9bdb2-8b5b-4aa3-ad51-a799734273f2|url-status=live|archive-url=https://web.archive.org/web/20200819015143/https://www.ft.com/content/6ec9bdb2-8b5b-4aa3-ad51-a799734273f2|archive-date=2020-08-19|access-date=2020-08-19|website=The Financial Times}}

In September 2020, Hitachi announced its withdrawal from the Wylfa and Oldbury projects, due to the lack of progress in the 20 months since suspending the project, and to the difficult investment environment following the COVID-19 pandemic. Horizon will close down its development activities, but will work with the UK government and other stakeholders to facilitate future options for the two sites.{{cite news |title=Hitachi withdraws from UK new-build project : Corporate - World Nuclear News |url=https://www.world-nuclear-news.org/Articles/Hitachi-withdraws-from-UK-new-build-project |work=www.world-nuclear-news.org}}

In March 2024, Great British Nuclear bought the Oldbury and Wylfa sites in a deal worth £160m.{{Cite web |last=McNamara |first=John |date=7 March 2024 |title=Great British Nuclear to buy two Hitachi sites for new nuclear development |url=https://www.gov.uk/government/news/great-british-nuclear-to-buy-two-hitachi-sites-for-new-nuclear-development}}{{Cite web |date=6 March 2024 |title=UK government buys Wylfa and Oldbury nuclear sites from Hitachi |url=https://www.world-nuclear-news.org/Articles/UK-government-buys-Wylfa-and-Oldbury-nuclear-sites}}

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• Economics of new nuclear power plants

{{Reflist|30em}}

• [http://www.horizonnuclearpower.com/ Horizon Nuclear Power]
• [http://www.hitachi-hgne-uk-abwr.com/ UK Advanced Boiling Water Reactor], Hitachi

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