Hitachi’s funding talks for UK nuclear plant hit a snag. Clouds hang over $26bn project as Tepco and others reluctant to chip in. Hitachi is having difficulty persuading Japanese companies to share the burden of building a nuclear power plant in the U.K., raising the specter of a withdrawal from the project worth more than 3 trillion yen ($26.5 billion).
Nikkei Asian Review 17th Dec 2018 read more »
Hitachi Ltd. may have to delay its final decision, planned for 2019, on a nuclear plant construction project in Britain. By the end of this year, Hitachi hoped to select a company that will acquire an equity stake in a British nuclear business subsidiary that will operate the project. However, according to informed sources, it is now difficult to secure an investor by the year-end. Therefore, a final decision on the project will likely be delayed. This in turn could force a postponement of the start of plant operations, which is currently slated for the early 2020. Through the subsidiary, Hitachi plans to start constructing two reactors on the island of Anglesey in Wales as early as 2020. To reduce management risks associated with the project, Hitachi aims to lower its equity ownership of the subsidiary from the current 100 percent to less than 50 percent. But Hitachi’s negotiations with the British government on financial assistance to ensure profitability of the project have not been concluded, and the company has yet to start full efforts to invite applications for investment in the subsidiary, the sources said. With the total project cost estimated at ¥3 trillion, well over the initial plan, Hitachi agreed in June with the British government to start full-scale negotiations in order to get the project going.
Japan Times 17th Dec 2018 read more »
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