Toshiba will take a £100 million hit in order to withdraw from plans to build the Power Plant.
Toshiba were originally part of the joint ownership of Nugen which were due to build the plant in west Cumbria. That became a partnership of one though when Engie went bankrupt and Toshiba were forced to buyout their 40% share.
Toshiba will completely wind up its Nuclear arm in the UK, currently the only interested buyer Kepco has not come back to table after talks broke down.
The Japanese firm said it would start the wind-up process in January.
“After considering the additional costs entailed in continuing to operate NuGen, Toshiba recognises that the economically rational decision is to withdraw from the UK nuclear power plant construction project, and has resolved to take steps to wind-up NuGen,” the Toshiba statement said.
Unions have criticised the government for both handing the contract for UK energy to overseas companies and for also failing to safeguard the project when Toshiba announced its plans to sell.