Toshiba to acquire 50 percent stake in the NuGen project

ToshibaToshiba has said that it is planning to acquire a 50 per cent stake in in a venture that is planning to develop a new generator at Sellafield.

Japanese giant has indicated that it is planning to acquire a majority of the £8.5billion project that will significantly boost the UK's Nuclear energy sector. The project is currently owned by French firm GDF Suez and Scottish Power's Spanish owner Iberdrola. Iberdrola has said that it will sell its 50 percent holding to Toshiba for £85million.

The UK energy sector is facing challenges as older power plants are being closed to meet strict European regulations and the country is forced to find new ways to generating power in a cleaner way. The entire nuclear plants of the UK are only expected to work until the next decade. The UK government has backed nuclear energy as one of the major energy source for the country. The authorities have already signed an agreement with EDF worth £14billion to develop two new reactors at Hinkley Point in Somerset.

Meanwhile, Japanese firm Hitachi is also planning to build new nuclear power stations on Anglesey and in Gloucestershire under the Horizon venture.