Japanese nuclear power companies in talks over alliance

JAPAN: Four of Japan’s biggest nuclear operators and plant builders have started talks on a potential partnership in atomic energy, as the sector struggles to reboot in the wake of the Fukushima disaster seven years ago, a source said yesterday.

Tokyo Electric Power Company Holdings Inc (Tepco), Hitachi Ltd, Toshiba and Chubu Electric Power Co Inc have signed an initial agreement that will be fleshed out in discussions, the source told Reuters. He declined to be identified as he was not authorised to speak with media.

The Nikkei newspaper earlier reported the companies had begun talks on an alliance that would initially focus on decommissioning old reactors.

That could be extended to building and maintaining nuclear plants, with the moves likely to spur a broad realignment in Japan’s nuclear industry, the Nikkei reported.

“It makes sense in the domestic arena to cooperate. Four balance sheets is better than one when it comes to nuclear risks,” said Tom O’Sullivan, the founder of energy consultancy Mathyos Japan.

When contacted by Reuters, all four companies said they had regular discussions with each other. Hitachi denied the details included in the Nikkei report on plans for decommissioning and the building of new reactors.

Japan’s nuclear sector provided about 30 per cent of the country’s electricity supply before a tsunami and earthquake caused reactor fuel meltdowns at Tepco’s Fukushima Daiichi station in March 2011.

All reactors had to be relicensed by a new regulator after the disaster highlighted regulatory and operational failings in the industry.

Nine reactors have received approval for restart after expensive upgrades to meet new safety standards. Chubu and Tepco have yet to restart any units. — Reuters