The UK Government will financially back a new nuclear power station in Anglesey in North Wales within three years.

Today the Government announced it has a co-operation agreement with UK nuclear project Horizon, which is owned by Japanese firm Hitachi to guarantee the financing by 2016.

The Wylfa Newydd plant is one of 40 priority projects in the Coalition’s Fourth National Infrastructure Plan published today.

This document sets the start date for building at Wylfa as 2018. It could generate enough energy for up to three million homes.

Masaharu Hanyu, Deputy Chairman of Hitachi Europe said: “This co-operation agreement is a welcome demonstration of the UK Government’s equal commitment to making a new generation of nuclear power stations a reality.”

Horizon Chief Operating Officer Alan Raymant added: “It will build confidence amongst our supply chain, future workforce, local communities and importantly potential investors.”

Katja Hall, Chief Policy Director for business trade group CBI said the guarantee will boost the North Wales economy, create thousands of jobs and safeguard long-term energy supply.

She added the “absolute priority” now is to get the Energy Bill onto the statute books and to finalise the secondary legislation.

An existing nuclear plant at Wylfa in Anglesey is set to close in 2014. Last month a seal had a lucky escape when it was rescued from the plant’s cooling chambers.