Japanese conglomerate Hitachi has announced it is abandoning plans to build a new nuclear power station at Wylfa Newydd on the island of Anglesey in North Wales, after the project was put on hold in January 2019.

It had been hoped that the plan, worth up to 20 billion pounds ($25.8 billion) and described as the biggestever energy project in Wales, could be revived, as it would bring hundreds of highly skilled jobs to the region. But a statement from the company said it was going to "end business operations on the nuclear power plant construction project in the United Kingdom.

"Hitachi made this decision given that 20 months have passed since the suspension," the statement continued, "and the investment environment has become increasingly severe due to the impact of COVID-19."

Speaking before the decision had formally been announced, Llinos Medi, the leader of Anglesey Council, said the prospect of the plug being pulled was "a devastating blow".

"The Wylfa Newydd project had the potential to transform the Anglesey and North Wales economy, particularly that of North Anglesey," she said.

"I will be calling for an urgent meeting with both UK and Welsh Governments to discuss the future of the Wylfa site."

Duncan Hawthorne, chief executive of Hitachi's nuclear arm in the UK, Horizon Nuclear Power, paid tribute to the eff orts made by local supporters of the project, and said he hoped the site, which had previously hosted another power station which was shut in 2015 after 44 years of service, could still be used in the future.

"Nuclear power has a critical role to play in helping tackle our energy needs, meeting our climate change targets and levelling up the economy through green growth and job creation," he said, adding that the site was "highly desirable" for a nuclear facility.

"We will do our utmost to facilitate the prospects for development which will bring the major local, national and environmental benefi ts that nuclear can uniquely deliver as we push to transition to a net zero carbon economy by 2050."

Local member of Parliament Virginia Crosbie said she knew "many people … will feel disillusioned if there is yet another setback in the plans for Wylfa," but promised to keep promoting it, calling it a "prime location for a nuclear energy plant."

"I still believe that the Wylfa site off ers great opportunities for the UK government to deliver both its levelling-up agenda and netzero carbon objectives… I will continue to work on the island and in Westminster to seek alternative approaches for the site."

However, not everyone was saddened by Hitachi's decision. The People Against Wylfa B action group welcomed the news, saying the project "would have ruined the environment over an area which is 10 times greater than the current site" and "endangered lives on Anglesey and beyond.

"Proposals to develop green energy schemes would be an area where Hitachi's expertise could create many jobs here," the group added.