Add new comment

Nuclear Reactors 647 - Japan's Hopes For Nuclear Exports Fade

        For years, Japan has made the export on nuclear technology a major part of their industrial expansion. The Fukushima nuclear disaster in 2011 dampened public enthusiasm and investor interest for nuclear power but the national politicians kept emphasizing how important nuclear equipment export were going to be for the future. While they are restarting some of the reactors which were shut down after Fukushima, there are serious problems with a couple of major reactor construction projects in other countries.
       The Japanese government often joins Japanese corporations to form consortiums to take on big international projects such as nuclear power reactor construction in other countries. Mitsubishi Heavy Industries (MHI) is one of the main Japanese companies that constructs nuclear reactors. Hitachi is another nuclear reactor exporter.
       The Prime Minister of Japan discussed a nuclear reactor project for Turkey with the Turkish Prime Minister in 2013. At a press conference in Ankara, the Japanese Prime minister said, “We will share our experiences and lessons from the (2011) disaster at the nuclear plant (run by the Tokyo Electric Power Co. in Fukushima) with the rest of the world, and will strive to contribute to enhancing the safety of nuclear power generation.”
      As time passed, the MHI estimation for the cost of the project has more than doubled. This means that Turkey would have to agree to purchase the electricity from the four nuclear reactors planned for Japan to build in the Turkish city of Sinop at a higher price than originally expected.
      Last December, the President on Mitsubishi Heavy Industry Ltd. said "The Turkish government is in the midst of evaluating the project. I believe it will respond to us in some way or other." If the Turkish government refuses to accept the increase in price for the reactors and the electricity that they produce, Japan and MHI will probably cancel the project.
          Japan is planning on suggesting to Ankara that Japan would “provide comprehensive energy cooperation” with respect to coal-fired power plants and liquifid natural gas facilities to replace the current agreement concerning nuclear power. Fearing a backlash from Ankara if the nuclear project is cancelled, Japan is looking for a way to get out of the nuclear deal in a way that will not trigger a diplopatic backlash between the two countries.
       A Hitachi project to build nuclear power reactors in the U.K. on the Isle of Anglesey is also encountering problems. The estimated cost of the project has risen by fifty percent and British citizens are afraid that this will be reflected in the price of electricity if the project goes forward.
      The current U.K. government supports the Anglesey project, but it is under heavy pressure from the turmoil caused by Brexit and, if it falls, the new government may not be as supportive. Companies in Japan that participate in nuclear project abroad may withdraw from the project because of the increased risk and the lack of profits in the project. Without guarantees from the U.K. government, it is likely that Japan will pull out of the deal.
       With two major international nuclear construction projects in serious trouble, it appears that despite government plans, it might be best for Japan to give up the idea of being a major exporter of nuclear technology.

Filtered HTML

  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <blockquote> <ul> <ol> <li> <i> <b> <img> <table> <tr> <td> <th> <div> <strong> <p> <br> <u>
  • Lines and paragraphs break automatically.