Hitachi has scrapped plans to build the Wylfa Newydd nuclear power station in Wales.
The Japanese firm announced it would shelve the £16 billion plant on Anglesey after failing to reach an agreement with the UK Government regarding the strike price of the project amid rising construction costs.
The facility was intended to be the next in a line of new nuclear plants following in the footsteps of Hinkley Point C – however, the price paid for energy generated at the site was to be set significantly lower than the price being paid to EDF Energy.
Hitachi has said it will take a ¥300 billion (£2.14bn) hit from the cancellation and expects around 300 job losses at its UK subsidiary Horizon Nuclear Power.
The government said it was still committed to new nuclear and would explore “alternative funding models for future nuclear projects”.
Duncan Hawthorne, CEO of Horizon Nuclear Power, said: “I am very sorry to say that despite the best efforts of everyone involved we’ve not been able to reach an agreement to the satisfaction of all concerned.
“As a result we will be suspending the development of the Wylfa Newydd project, as well as work related to Oldbury, until a solution can be found. In the meantime we will take steps to reduce our presence but keep the option to resume development in future.”
A BEIS spokesperson said: “As the Business Secretary set out in June, any deal needs to represent value for money and be the right one for UK consumers and taxpayers. Despite extensive negotiations and hard work by all sides, the Government and Hitachi are unable to reach agreement to proceed at this stage.
“This Government is committed to the nuclear sector, giving the go ahead to the first new nuclear power station in a generation at Hinkley Point C, investing £200 million through our recent sector, which includes millions for advanced nuclear technologies. We are also reviewing alternative funding models for future nuclear projects and will update on these findings in summer 2019.”
Last year Toshiba confirmed it would withdraw from plans to build a nuclear power station in Cumbria.