Hitachi has announced it is suspending work at the Wylfa Newydd nuclear plant after failing to agree a funding arrangement for the scheme.
In a statement issued through subsidiary Horizon Nuclear Power, the Japanese company said it is suspending work on the North Wales site, and at Oldbury on Severn in South Gloucestershire.
Chief executive Duncan Hawthorne said: “We have been in close discussions with the UK government, in co-operation 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.”
He added that consultations will begin with staff on site as soon as possible and paid tribute to their “talent, resilience and determination”.
But he added that Wylfa “remains the best site for nuclear development in the UK” and said the company will keep “channels of communication open with the government” about future options.
Hitachi owns the land on which it was building Wylfa.
A spokesman for Department for Business, Energy and Industrial Strategy said any deal for the site must “represent value for money”.
He added: “Despite extensive negotiations and hard work by all sides, the government and Hitachi are unable to reach agreement to proceed at this stage.”
The spokesman added that a review of funding models for future nuclear projects will be complete in the summer.
A statement is due to be made by business secretary Greg Clark later this morning.
Nuclear half-time report
Construction News delved deep into new-nuclear in the UK last year and analysed how each of the six nuclear new-builds were getting on.
We looked at Hinkley Point C, Wylfa Newydd, Sizewell C, Moorside, Oldbury and Bradwell B
Wylfa: Hitachi scraps work at nuclear site