NuGen has plans to build new 3.8GW nuclear power station at the Moorside site near Sellafield in Cumbria. The facility will feature three AP-1000 reactors designed by Westinghouse.
Toshiba said that the recent bankruptcy protection filing by its subsidiary Westinghouse was an action that meets the definition of an 'event of default' under the terms of the agreement with Engie.
As a result, Engie is allowed to either sell stake in NuGen to Toshiba or acquire all of Toshiba’s shareholding in the joint venture, Toshiba noted.
Accordingly, Engie has exercised “its contractual rights in view of transferring its 40% shares to Toshiba”.
As sole owner of NuGen, Toshiba is now seeking more investors for the $15bn-$20bn project or to sell out altogether, reported Reuters.
NuGen said in a statement: “NuGen has been working tirelessly to bring in additional investment to support the Moorside project as it works towards helping to deliver a low-carbon future for the UK.”
Meanwhile, Engie also noted that it would provide its service expertise of NuGen and help any restructuring with new potential partners for the development, construction and operation of the project.
Last Month, Korea Electric Power (KEPCO) was reportedly in talks to acquire Toshiba’s 60% interest in NuGen, which is expected to meet approximately 7% of the UK's future electricity needs.
