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The government has confirmed plans to pursue a third large-scale nuclear power plant following the Hinkley Point and Sizewell projects. It was announced earlier this year that the government aims to establish a significant nuclear power plant at Wylfa on Anglesey in North Wales, acquiring the site from Japanese engineering giant Hitachi.
The Department for Energy Security and Net Zero has officially designated Wylfa as the 'preferred site' for developing the UK's third central nuclear power station. This new project will follow the Hinkley Point plant, currently under construction in Somerset, and the planned power station at Sizewell in Suffolk.
The government is now initiating discussions with global nuclear developers to explore the potential of delivering another substantial nuclear project in North Wales. This new plant would provide enough clean energy to power approximately six million homes annually.
"We are powering ahead with the biggest expansion of nuclear energy in 70 years," said Claire Coutinho, Secretary of State for Energy Security and Net Zero. "Anglesey has a proud nuclear history, and it is only right that, once again, it can play a central role in boosting the UK's energy security. Wylfa would not only bring clean, reliable power to millions of homes - it could create thousands of well-paid jobs and bring investment to the whole of North Wales."
Chancellor Jeremy Hunt announced in the Spring Budget that the government had agreed with Hitachi to acquire both the Wylfa site and a second site at Oldbury in South Gloucestershire in a £160 million deal. This move came after the developer shelved plans for new nuclear plants at both sites back in 2020, having failed to secure a support package agreement with the government.
The sites were acquired by the government-backed Great British Nuclear Agency, prompting speculation that they could be used to advance the government's plans for a fleet of Small Modular Reactors (SMRs).
However, the government argued today that the Wylfa site is well-suited for a large-scale nuclear project, given its proximity to water for cooling and its heritage as the location of one of the UK's first nuclear power plants. Additionally, it was mentioned that Great British Nuclear aims to announce successful bidders for its SMR competition by the end of this year.
Gwen Parry-Jones, CEO at Great British Nuclear, said: "Having agreed to purchase the Wylfa site earlier this year, GBN looks forward to working with the government on the market engagement programme for large-scale gigawatt providers and also delivering this vital project in the years to come."
The news was welcomed by Tom Greatrex, chief executive at the Nuclear Industry Association (NIA), who said the government was "absolutely right to pursue more large-scale nuclear alongside the SMR programme". "It is proven technology that delivers clean, sovereign power and can transform communities with thousands of high quality, long term jobs and apprenticeships," he added. "Wylfa is an ideal place for a big nuclear project, and the community knows nuclear."
However, the decision is likely to be fiercely criticized by some green groups, which have long questioned the cost-effectiveness of relying on new nuclear power plants to help decarbonize the grid.
Earlier this year, Hinkley Point developer EDF confirmed further delays and cost overruns at the flagship project, indicating it may not be online until after 2030. Meanwhile, the government and EDF are yet to finalize additional investors for the new Sizewell plant, which will see the government take a direct stake despite concerns that the financing arrangement could expose taxpayers to the risks associated with the project. Critics warn that new nuclear projects could increase the cost of decarbonizing the grid, especially as renewables and energy storage costs are expected to continue falling in the coming years.
Advocates of new nuclear plants counter that the experience and skills base built up at Hinkley Point should curb development costs and construction risks at future projects. They argue that delivering projects capable of reliably providing up to seven per cent of the UK's power is crucial for meeting net zero goals.
In related news, nuclear technology firms X-Energy UK Holdings and Cavendish Nuclear announced today that they have commissioned Teesside University to study the potential regional economic benefits of a proposed multi-billion-pound nuclear power station project in Hartlepool.
This study is part of a £6.68 million program funded by X-Energy and the UK government, which awarded the firm £3.34 million in April this year from its Future Nuclear Enabling Fund. The fund aims to advance plans for a new fleet of nuclear projects.
X-Energy is proposing to build its Xe-100 advanced modular reactor plant by the early 2030s next to Hartlepool's existing nuclear power station, which is scheduled to close this decade.
"Advanced modular reactors are the future of nuclear technology, with the ability to generate clean, reliable power for homes and heat to decarbonise industry," said Minister for Nuclear and Renewables Andrew Bowie. "New nuclear projects could provide jobs and investment for local communities across the UK, and we look forward to seeing the benefits of a potential new nuclear plant in Hartlepool."
The news also comes after Scottish Secretary Alister Jack revealed the government is looking to locate a new nuclear power plant in Scotland, despite the SNP government's current block on new projects.
The BBC reported comments from Jack to a Lords Committee confirming he had asked the Energy Minister to plan an SMR project for Scotland. "I believe that in 2026, we'll see a unionist regime again in Holyrood, and they will move forward with that," he said, suggesting the current Scottish government's moratorium on new nuclear projects could be reversed.
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