Wylfa: Welsh ministers 'discuss ways forward' for nuclear plant

Work was suspended at Wylfa Newydd in January 2019

A site on Anglesey remains one of the best for a new nuclear development in Europe, according to the Welsh Government.

Japanese backers Hitachi pulled out of the Wylfa Newydd scheme last September.

Its subsidiary Horizon confirmed the end of the troubled project last month in a letter to the UK government.

But the Welsh Government refused to comment on a Sunday Times report that it wanted to take on a caretaker role until a developer was found.

A spokesman said it continued to discuss potential ways forward.

A new Wylfa power station had been planned on a site next to the old power plant on Anglesey.

Senior Welsh Government sources told BBC Wales that ministers and officials were "exploring all the available options" because they wanted to "support a developer to make Wylfa a reality".

One said: "We're not in a position to say we're going to take over the site but we're continuing discussions with Horizon and other partners.

"We're exploring all the options but it's too early to be saying anything."

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The Welsh Government said in a statement: "Hitachi's decision to withdraw from the Wylfa Newydd project is disappointing. 

"While we will not comment on speculation, we remain convinced that Wylfa Newydd is one of the best sites for a new nuclear development in Europe and continue to discuss potential ways forward for the site with both Hitachi and Horizon."

The Wylfa Newydd site, which sits next to the former nuclear plant now undergoing decommissioning, was expected to have cost between £15-£20bn to develop.

Work was suspended in January 2019 because of rising costs after Hitachi failed to reach a funding agreement with the UK government.

Speaking on BBC Politics Wales, Education Minister Kirsty Williams said: "We remain convinced that if there is to be a new nuclear power station that Wylfa is a perfect site for that.

"We will continue as a government to have discussions with both Hitachi and Horizon and the local authority about how we can utilise that site."

The Welsh Government bought Cardiff Airport in 2013 for £52m, and former First Minister Carwyn Jones said in 2016 he would have been prepared to take a stake in Tata Steel's UK operations, which are focused on Port Talbot.

Janet Finch-Saunders, the Welsh Conservative spokeswoman on the environment, energy and rural affairs, said the party was "disappointed as plans for the Wylfa site have seen setback after setback".

"While we maintain that the Anglesey site is ideal for a nuclear power plant, I'd urge caution over - if accurate - reports that the Welsh Government is considering taking over the project.

'Patchy'

"Its track record on major projects has been patchy to say the least," said the Member of the Senedd for Aberconwy.

Economy Minister Ken Skates and the UK government Business Secretary Kwasi Karteng are likely to discuss Wylfa's future during a scheduled meeting on Monday.

It comes after the UK's Planning Inspectorate released its report recommending the UK government "should withhold consent" for the Wylfa Newydd project.

In the report, dated July 2019, the inspectorate said: "In terms of biodiversity, ecology and nature conservation the proposed development fails the tests.

"On balance, the matters weighing against the proposed development outweigh the matters weighing in favour of it."

Plaid Cymru leader Adam Price said the Welsh Government should concentrate on a "green economic stimulus for Wales that will deliver far better long term economic benefits and also will avoid the serious environmental concerns that led to the planning inspector turning down the application for Wylfa".

He added: "I think it certainly is the wrong move to put our eggs in the nuclear basket when Wales has far more potential in terms of renewable, in terms of this green industrial revolution rather than putting our hopes on a nuclear power station."

Anglesey council said it was "supportive and eager to see Welsh Government and the UK government consider and pursue all options which could see a new development progressed on Anglesey".

Horizon said it did not comment on speculation.

Last December the UK government began talks with French energy company EDF about the construction of a new £20bn nuclear power plant, Sizewell C, in Suffolk.

EDF is also building the Hinkley Point C nuclear energy plant in Somerset in partnership with China General Nuclear Power.