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Released February 03, 2014 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Toshiba Corporation (TYO:6502) (Tokyo, Japan) is determined to control a slice of the U.K.'s future nuclear power market by purchasing a controlling share in the NuGeneration Limited (NuGen) nuclear joint venture company.
The company has agreed with current NuGen partners, Iberdrola SA (MCE:IBE) (Bilbao, Spain) and GDF Suez (OTC:GDSZF) (Paris, France), to buy a 60% stake in the venture for 124 million ($167 million). It will see the proposed 3,400-megawatt (MW) NuGen Moorside nuclear project, which will be constructed on a site next to the Sellafield nuclear reprocessing site in northern England, use three AP1000 nuclear reactors from Toshiba-owned Westinghouse.
Toshiba is desperate to drum up new nuclear business following the Fukushima nuclear accident in Japan in 2011. Since then, all reactors in Japan have remained closed while the ripple effect has led to countries including Italy, Germany and Switzerland abandoning nuclear power. In its recent third quarter financial results, Toshiba's Energy and Infrastructure business reported a 9 billion yen ($87.6 million) loss, blaming weak nuclear business at home and abroad. Nuclear accounts for around 9% of the company's total business.
Toshiba will purchase all of Iberdrola's indirect 50% holding in the U.K. company as well as 10% from GDF Suez. The overall transaction is expected to be completed within the first half of this year.
"NuGen's Moorside project focuses on the development of a new generation nuclear power station and represents a major investment in the future, and in supporting the U.K. to meet the challenges of securing a stable, affordable, future energy supply and cutting CO2 emissions," Toshiba said in a statement. "The three AP1000 units to be built on the site, developed by Westinghouse, will have a combined capacity of 3.4 gigawatts (GW). After the closing, Toshiba will hold a 60% stake in NuGen, and GDF Suez will hold 40%, achieving a strong partnership with complementary skills and experiences. Building on this major development, Toshiba and Westinghouse will seek further opportunities to build AP1000 reactors.
U.K. Energy Minister, Michael Fallon, told media: "The announcement by NuGen and Toshiba and Westinghouse shows that the U.K. is an attractive destination for investors in new nuclear."
According to Toshiba, Westinghouse reactors are being used for approximately half of the world's operating nuclear plants, including more than 50% of those in Europe. The AP1000 has already been issued with interim Design Acceptance Confirmation (iDAC) by the U.K.'s Office for Nuclear Regulation alongside interim Statements of Design Acceptability (iSoDA) by the Environment Agency. The company expects to achieve Generic Design Assessment (GDA) approval in 2016.
Toshiba is the second Japanese firm to be targeting the U.K.'s new nuclear build drive. Hitachi-GE Nuclear Energy entered the U.K. nuclear build race in 2012 when it bought the Horizon Nuclear Power joint venture for 863 million ($1.1 billion). For additional information, see October 31, 2012 article - RWE and E.ON Sell U.K. Nuclear Venture.
View Project Report - 300039998
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
The company has agreed with current NuGen partners, Iberdrola SA (MCE:IBE) (Bilbao, Spain) and GDF Suez (OTC:GDSZF) (Paris, France), to buy a 60% stake in the venture for 124 million ($167 million). It will see the proposed 3,400-megawatt (MW) NuGen Moorside nuclear project, which will be constructed on a site next to the Sellafield nuclear reprocessing site in northern England, use three AP1000 nuclear reactors from Toshiba-owned Westinghouse.
Toshiba is desperate to drum up new nuclear business following the Fukushima nuclear accident in Japan in 2011. Since then, all reactors in Japan have remained closed while the ripple effect has led to countries including Italy, Germany and Switzerland abandoning nuclear power. In its recent third quarter financial results, Toshiba's Energy and Infrastructure business reported a 9 billion yen ($87.6 million) loss, blaming weak nuclear business at home and abroad. Nuclear accounts for around 9% of the company's total business.
Toshiba will purchase all of Iberdrola's indirect 50% holding in the U.K. company as well as 10% from GDF Suez. The overall transaction is expected to be completed within the first half of this year.
"NuGen's Moorside project focuses on the development of a new generation nuclear power station and represents a major investment in the future, and in supporting the U.K. to meet the challenges of securing a stable, affordable, future energy supply and cutting CO2 emissions," Toshiba said in a statement. "The three AP1000 units to be built on the site, developed by Westinghouse, will have a combined capacity of 3.4 gigawatts (GW). After the closing, Toshiba will hold a 60% stake in NuGen, and GDF Suez will hold 40%, achieving a strong partnership with complementary skills and experiences. Building on this major development, Toshiba and Westinghouse will seek further opportunities to build AP1000 reactors.
U.K. Energy Minister, Michael Fallon, told media: "The announcement by NuGen and Toshiba and Westinghouse shows that the U.K. is an attractive destination for investors in new nuclear."
According to Toshiba, Westinghouse reactors are being used for approximately half of the world's operating nuclear plants, including more than 50% of those in Europe. The AP1000 has already been issued with interim Design Acceptance Confirmation (iDAC) by the U.K.'s Office for Nuclear Regulation alongside interim Statements of Design Acceptability (iSoDA) by the Environment Agency. The company expects to achieve Generic Design Assessment (GDA) approval in 2016.
Toshiba is the second Japanese firm to be targeting the U.K.'s new nuclear build drive. Hitachi-GE Nuclear Energy entered the U.K. nuclear build race in 2012 when it bought the Horizon Nuclear Power joint venture for 863 million ($1.1 billion). For additional information, see October 31, 2012 article - RWE and E.ON Sell U.K. Nuclear Venture.
View Project Report - 300039998
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
