A Korean state-owned power giant is drawing up plans to buy a slice of a new £10bn nuclear plant in north Wales. Korea Hydro & Nuclear Power (KHNP) has held early talks about pumping cash into Horizon, the power station being developed by Japanese conglomerate Hitachi on Anglesey. The development is the latest twist in tortuous efforts to fund and build a fleet of power stations to replace Britain’s ageing coal and nuclear plants. Hitachi, whose products range from high-speed trains and nuclear reactors to flatscreen televisions and MRI scanners, has been trying to attract funds for the 5.4MW Horizon power station, which would provide electricity for about 10m homes. It is unwilling to shoulder the project’s £10bn-plus price tag on its own, however, and has been scouring the world for investors. KHNP, a subsidiary of Korea Electric Power Corporation, would likely invest in Horizon as a minority shareholder alongside the governments of Japan and Britain. It is understood to be hiring advisers in the UK. Britain could end up with a 20% stake in Horizon, which the government would probably sell once the project is complete. Japan could put money into Horizon through state investment arms JBIC and NEXI. Korea Electric Power Corporation is also trying to buy the planned NuGen plant in Moorside, Cumbria, which is being sold by its embattled Japanese owner Toshiba. Hitachi has been told to undercut this “strike price” significantly, but is believed to be struggling to get it down to the £70-£80 range. It is calling for Tokyo and London to inject funds and share the construction risk.
Sunday Times 23rd July 2017 read more »