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August 22, 2018

Horizon Nuclear Power signs further development contracts to
advance Anglesey reactor plans

Bechtel appointed Project management Contractor,
Further contracts agreed with Hitachi Nuclear Energy Europe and JGC

London, 22, August 2018 - Horizon Nuclear Power a wholly owned subsidiary of Hitachi, Ltd. (TSE:6501) today announced it had appointed world-leading construction firm Bechtel as Project Management Contractor (PMC) for its proposed Wylfa Newydd nuclear power station on the Isle of Anglesey.

Horizon has also signed further contracts with Hitachi Nuclear Energy Europe (HNE), and JGC New Energy UK Limited (JGC) to continue to provide support during the project's development stage.

The move further strengthens the delivery structure and builds on previous intensive work, enabling the project to move into the next phase. Bechtel, who will have nearly 200 employees embedded within Horizon, will oversee the project management of the power station, together with Horizon.

As PMC, Bechtel will draw on its 120 years of experience and know-how of delivering mega-projects. Bechtel has operated in UK construction for over 60 years, designing and building power plants, refineries, rail systems, and communication networks.

It has been involved in more than 150 nuclear plants, acting as architect engineer for 71 plants and constructing 42. The company will sit at the heart of the Wylfa Newydd project organisation, leading the contractual and commercial interface with suppliers on behalf of Horizon.

Assuming a successful project outcome, Hitachi Nuclear Energy Europe will deliver the UK Advanced Boiling Water Reactors for the power station, also drawing on their technology expertise to act as Architect Engineer. JGC will continue to provide a range of specialist services around the 'Balance of Plant', the supporting components and systems needed to deliver the energy beyond the generating unit itself.

Duncan Hawthorne, CEO of Horizon Nuclear Power, said: "These world-leading companies bring a wealth of nuclear, engineering and construction expertise to complement our growing organization and will help us replicate the cost and schedule successes of the previous four ABWR reactors. The country still needs reliable nuclear power to help transform our energy mix, and we are gearing up to deliver that. Our first power station will be cheaper than what has gone before and after that, with smart financing, supply chain learnings and no need for first time overheads, future project costs will fall further still."

Barbara Rusinko, President, Nuclear, Security and Environmental at Bechtel, said "We've been part of the Horizon family for several years, and it's been a pleasure to work alongside the company as it has evolved through its development phase. We look forward to continuing to bring our expertise to the construction of the UK's next new nuclear power station at Wylfa Newydd in our new role as Project Management Contractor."

The embedding of Bechtel within Horizon will mirror the kind of client/contractor relationship that has been successful in delivering the previous four ABWR nuclear reactors on time and on budget.

In June, the UK Government confirmed it was considering direct investment in the Wylfa Newydd project as a means to deliver affordable secure supplies of low carbon power to Britain. In July, the Planning Inspectorate, which considers major infrastructure project applications, accepted a 41,000-page submission for a Development Consent Order for Wylfa Newydd. The examination phase is expected to commence in the autumn.

About Project Delivery Structure

[image]About Project Delivery Structure

Issue of these contracts follows two years of excellent progress made by Hitachi, Bechtel and JGC, supporting the project development through their work in the Menter Newydd joint venture. The contracting structure has now evolved in line with the next phase of the project as it moves into the pre-construction stage.

About Horizon Nuclear Power

Horizon Nuclear Power was formed in 2009 to develop new nuclear power stations in the UK. It was acquired by Hitachi, Ltd. in November 2012. The company is developing plans to build at least 5,400MW of new nuclear power generation plant at Wylfa on the Isle of Anglesey and Oldbury-on-Severn in South Gloucestershire. Its power station sites will employ up to 850 people each once operational with construction workforces of up to 9,000.

About Bechtel

Bechtel is one of the most respected global engineering, construction, and project management companies. Together with their customers, they deliver landmark projects that foster long-term progress and economic growth. Since 1898, they've completed more than 25,000 extraordinary projects across 160 countries on all seven continents. They operate through four global businesses: Infrastructure; Nuclear, Security & Environmental; Oil, Gas & Chemicals; and Mining & Metals.

About Hitachi Nuclear Energy Europe

Hitachi Nuclear Energy Europe is a UK-registered 100% subsidiary of Hitachi, Ltd., operating under the Nuclear Systems Division of Hitachi's Nuclear Energy Business Unit. The company was formed in 2015 and began operations on 1st April 2016, providing effective localised management and delivery of selected UK and European nuclear business.

About JGC New Energy UK Limited

JGC UK was established in March 2014 as part of JGC's global expansion. As a JGC Corporation wholly owned subsidiary, JGC's office in the United Kingdom are backed by a strong legacy of more than 85 years' experience of completing projects in a variety of industries, including LNG, refining, gas processing, petrochemicals and other hydrocarbons.

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