The company has informed the Government of the decision taken at the Hitachi Board meeting today (17 January) not to continue with the current programme of activities.

Duncan Hawthorne, CEO of Horizon Nuclear Power said: “We have made very strong progress on all aspects of the project’s development, including the UK design of our tried and tested reactor, supply chain development and especially the building of a very capable organisation of talented and committed people.

“We have been in close discussions with the UK Government, in cooperation with the Government of Japan, on the financing and associated commercial arrangements for our project for some years now. 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.”

Addressing the effects that this decision will have, Hawthorne said: “Clearly this will have a significant impact for all involved with our project. We will look to minimise this as much as possible as we move into this next phase and we will begin consultation on the implications immediately with our staff who have shown extraordinary talent, resilience and determination to take this complex and exciting project to this stage.

“We will also engage closely with the many international and UK-based stakeholders who have strongly supported the project’s development, especially our lead host community of Anglesey in Wales, represented by the Isle of Anglesey County Council and Welsh Government, and the key representatives around Oldbury.”

Hawthorne said nuclear remained critical to delivering the secure, low carbon and affordable energy the UK needs.

“As shown by our completion of the Generic Design Assessment for the UK Advanced Boiling Water Reactor, I am confident that the technology can play an important role in helping tackle our energy needs and meeting our climate change targets. Wylfa Newydd on Anglesey remains the best site for nuclear development in the UK and we remain committed to keeping channels of communication open with the Government and our other key stakeholders regarding future options at both our sites.”