Japanese company Toshiba group just completed a deal to supply nuclear reactors to British power company NuGen. Expected to be worth around 1.5 trillion yen (approx. US$14.37 billion), Toshiba will provide the power company with three reactors starting in 2017 that will be set up at a power plant to be built by NuGen in Sellafield, the northern part of England.
Unlike Germany and Austria who swore off nuclear power after the 2011 accident in Fukushima, Britain’s desire to expand nuclear energy helped pave the way for Toshiba to enter the market and buy half of NuGen this year. The Japanese firm intends to buy a 50% stake from shareholder Spanish power company Iberdola, worth $140 million. An additional 10% share from French energy firm GDF Suez will bring the total to around $164 million (100 million pounds). Westinghouse Electric, Toshiba’s subsidiary in the U.S., will build the AP1000 nuclear reactors generating 1.1 million kilowatts each. Expecting a total output of 3.4 million kilowatts, the three reactors will be utilized when operations on the nuclear power plant NuGen is setting up in Sellafield begin sometime 2024 to 2025. Currently, the Japanese firm is still in talks with the U.K. government regarding land utilization rights for the site as the current lease is near expiration already. More than 10 billion yen ($95.7 million) will be needed for the company to extend the said lease.
Toshiba’s plans to supply more reactors to other facilities are in line with the company’s vision to get back on the nuclear business track, which has remained stagnant in the past years. The company has been in talks with nuclear facilities in Finland and Czech Republic. It intends to supply around 30 reactors by the year 2018 to achieve sales of 1 trillion yen, higher than the expected 522 billion yen sales in 2012.