Japan’s Prime Minister Abe in UK to beg for more money for Wylfa nuclear project?
Unearthed 9th Jan 2019 Doug Parr: Japan’s prime minister Shinzo Abe is in London this week, and it seems likely in his meeting with Theresa May that the Japanese-backed
nuclear power plant in Wales will come up. The Wylfa project, to be built
by Hitachi and its subsidiary Horizon, is one of a clutch of planned
nuclear power stations which the UK government has heavily prioritised for
security of power supply, and meeting the country’s climate obligations.
Late last year another of the 6 major projects, the proposed Moorside plant
in Cumbria, was effectively abandoned after Toshiba pulled out. And another
has come under fire as questions are raised about security issues flowing
from the Chinese builders.
These developments effectively illustrate that
UK nuclear power policy is heavily dependent on overseas developers.
What is less understood is that there are significant shifts underway in Japan
which strongly suggest Hitachi’s projects may too be at risk. The most
advanced of Horizon’s nuclear plans is a large power station to be built
at Wylfa on Anglesey, North Wales. In fact, with the collapse of Moorside,
the Wylfa plant is the only nuclear project that could realistically be
built before 2030, in addition to the plant already under construction at
Hinkley Point in Somerset.
Japan, however, is reconsidering its nuclear
export strategy. Because it keeps going wrong. Until recently it had 3
companies interested in building nuclear power stations abroad: Toshiba,
Mitsubishi and Hitachi. These companies have experience building nuclear
stations at home but since the Fukushima disaster in 2011, they have had to
look elsewhere.
Seeking to help these giants of Japanese industry to
maintain their businesses, Prime Minister Abe reportedly wanted to turn
Japan into a “nuclear export superpower”. Hitachi, however, are
reportedly be thinking of scrapping the project as its costs and risks
become unmanageable. Hitachi could be looking at Toshiba’s
near-bankruptcy and thinking ‘let’s not go there’. According to their
chairman the project was in “an extremely severe situation” as it
struggled to attract investors, even though UK government may have promised
as much as two thirds of the build cost.
Despite this already generouslargesse (on behalf of UK taxpayers, not offered to any other energy projects) Hitachi are intending to come back to UK government and ask for
more. It looks like no assessment of the risks by a private funder come
back looking good, and the only way nuclear plants can be built is with
government stepping into very risky projects that require taxpayers to
shoulder the risk.
The aversion from private investors may not only be
because of the rising costs, but also that the operating performance of the
proposed reactor is pretty poor (albeit partly due to earthquakes).
Notably Hitachi continues to be happy to spend many billions of pounds on power
grid investments, but not its own nuclear reactor, which it wants UK
taxpayers to fund. Major Japanese newspapers have opposed their own
taxpayers lending support to the Wylfa project, even though a home-grown
company would be getting the benefits.
And during the Xmas break, Japan’s
third largest newspaper called for the nuclear export strategy to be
abandoned. Another paper attacks the ‘bottomless swamp’ of nuclear
funding in UK and remarks upon how few countries seem to be following the
UK-style nuclear-focused policy. Reportedly Japanese government has asked
its development banks to fund the ‘nuclear export strategy’, and Wylfa
in particular, but they don’t want to. It is quite difficult to see how
Hitachi can manage the risks of this project without some home support, and
support in Japan is ebbing away.
https://unearthed.greenpeace.org/2019/01/09/japan-uk-nuclear-plans-go-awry/
Funding deadlock looks set to sink Japan’s last overseas nuclear project.
Nikkei Asian Review 11th Jan 2019 , Hitachi to suspend all work on UK nuclear plant. Funding deadlock looks set to sink Japan’s last overseas nuclear project. Hitachi plans to put a U.K.nuclear power project on hold as negotiations with the British government over funding hit an impasse, all but closing the book on Tokyo’s vision for nuclear infrastructure exports.
board is expected to officially decide next week to suspend all work on the
plant, including design and preparations for construction. Hitachi will
freeze the roughly 300 billion yen ($2.77 billion) in assets held by its
British nuclear business and write down their value, likely booking a loss
of 200 billion yen to 300 billion yen for the fiscal year ending in March.
after the news last month that a Japanese-led consortium including
Mitsubishi Heavy Industries was scrapping a project in Turkey. With the
aversion to nuclear power that took hold after the March 2011 Fukushima
Daiichi disaster showing little sign of abating, prospects look grim for a
sector that the Japanese government had positioned as a pillar of its
infrastructure export drive. Hitachi had taken on the planned construction
of two reactors on the Welsh island of Anglesey after acquiring U.K.-based
Horizon Nuclear Power in 2012. The company is leaving the door open to a
return. The project is “not being abandoned,” a source close to Hitachi
told Nikkei, suggesting the company would keep an eye on the situation and
resume the project if possible.
apparently set to continue, reworking the project to the extent Hitachi
requires will be no easy task. As things stand now, it appears likely that
the company will ultimately be forced to bow out.
https://asia.nikkei.com/Business/Business-Deals/Hitachi-to-suspend-all-work-on-UK-nuclear-plant
JAPC denies granting local prior consent for Tokai reactor restart

Major financial group in Japan bans lending to those developing, making or possessing nuclear weapons

Resona bans lending to those developing, making or possessing nuclear weapons https://mainichi.jp/english/articles/20190107/p2a/00m/0bu/024000c, January 7, 2019 (Mainichi Japan) TOKYO — Resona Holdings Inc., a major financial group in Japan, has announced a policy of not extending loans to borrowers that are involved in the development, production or possession of nuclear weapons.
The statement, the first of its kind by a major Japanese banking institution, came amid similar moves by an increasing number of European banks and institutional investors following the adoption at the United Nations of the Treaty on the Prohibition of Nuclear Weapons in 2017.
Whether other Japanese corporations will follow Resona’s action is a focus of attention for the future. There were other lenders banning loans for the production of nuclear weapons, but the Resona policy prohibits any loans to such companies even when such transactions are for non-nuclear related purposes.
The new posture was incorporated in a document titled “Efforts toward socially responsible investment and loans,” which was announced in November last year. According to the paper, Resona refuses to lend to those that are associated with the development, production or possession of weapons of mass destruction, such as nuclear, chemical and biological weapons, or inhuman weaponry including antipersonnel mines and cluster munitions.
Entities that can be subject to relevant restrictions or sanctions, or even those with the potential to be hit with such punitive measures, will be rejected as borrowers, the document says.
An official with Resona, which has never lent to companies making nuclear weapons, explained that the banking group decided to introduce the policy “because we thought it important for providers of funds to make such efforts toward a sustainable society.”
According to the Dutch nongovernmental organization PAX, 63 financial institutions had similar lending policies as of October 2017, an increase of nine from the previous year.
A Mainichi Shimbun poll of four Japanese mega banks — Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, Mizuho Financial Group and Sumitomo Mitsui Trust Holdings — as well as four major life insurance companies — Nippon, Dai-ichi, Meiji Yasuda and Sumitomo — found that all of the eight companies and groups have policies to refrain from lending and investment over inhuman weapons. Yet the entities did not specify the production of nuclear weapons as a condition to disengage from borrowers.
Officials at Sumitomo Mitsui and Mizuho replied that their companies ban loans to be used in the production of nuclear weapons, while a Mitsubishi UFJ official explained that the company is “making careful judgment in each transaction.”
(Japanese original by Satoko Takeshita, Business News Department)
Japanese gov’t plan to export nuclear power technology to Turkey floundering


Japan losing hope for having a nuclear export industry
Japanese gov’t plan to export nuclear power technology floundering, January 4, 2019 (Mainichi Japan) (Japanese original by Takayuki Hakamada and Ryo Yanagisawa, Business News Department) TOKYO — The Japanese government’s strategy to export nuclear power technology has run aground amid rising safety costs and deteriorating prospects for project profitability. While the government has aimed to maintain the country’s nuclear technology and expert resources through construction of atomic reactors abroad amid stalled nuclear plant development at home, its projects with Turkey and Britain have both hit snags.
“The Turkish government is in the midst of evaluating the project. I believe it will respond to us in some way or other,” said Shunichi Miyanaga, president of Mitsubishi Heavy Industries Ltd., in mid-December about a plan to build a nuclear power plant in Sinop, northern Turkey. Miyanaga’s comment suggested that the fate of the project had been left up to the Turkish government.
At the end of July last year, Mitsubishi Heavy told the Turkish government that the cost of the project would total somewhere around 5 trillion yen, more than doubling from the original estimate of roughly 2.1 trillion yen. As the plan envisages recovering the costs through profits from power generation at the nuclear facility, it would not become profitable unless Turkey purchases the generated electricity at a higher price than originally expected. If Turkey does not comply with the increased burden, Japan would withdraw from the plan.
The nuclear plant project was pitched by Prime Minister Shinzo Abe to then Turkish Prime Minister Recep Tayyip Erdogan in 2013. At the time, Abe vowed at a press conference in Ankara, “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.”
However, the catastrophe prompted the international community to turn a wary eye toward nuclear power, leaving the costs for safety measures at nuclear plants to swell. The steep fall in the Turkish lira over the past year by more than 30 percent also added to the project’s deteriorating profitability.
Under these circumstances, Tokyo plans to propose to Ankara that it would provide comprehensive energy cooperation in such spheres as coal-fired thermal power generation and liquefied natural gas, in place of the atomic plant project. Because the nuclear power project is based on an agreement struck by both leaders, such a proposal by Tokyo could face a backlash from Ankara, but Japan’s focus is already shifting to how to withdraw from the project without undermining bilateral diplomatic ties with Turkey.
Meanwhile, a nuclear plant construction project undertaken by Hitachi Ltd. on the Isle of Anglesey in central Britain has also run into rough waters, after the project’s costs soared to approximately 3 trillion yen, about 1.5 times the initial estimate.
n May last year, Hitachi Chairman Hiroaki Nakanishi held talks with British Prime Minister Theresa May, where the latter agreed to expand her government’s support for the project. However, British citizens have been wary of the scheme out of concern that it could lead to rising electricity bills should Japan’s request to raise the sale price of electricity be accepted.
As the May administration is suffering from sagging approval ratings amid turmoil over Britain’s exit from the European Union, it is becoming increasingly difficult for London to comply with an increased burden. At home, Japanese companies are also becoming more reluctant to invest in the project out of fears of poor profitability and accident risks. Given the circumstances, Tokyo is also likely to exit the project.
The Abe administration has made the export of nuclear power technology a pillar of its growth strategy, but to little avail thus far. While the government intends to pursue measures to counter China and Russia’s aggressive drive to export nuclear plants by stepping up financial support for partner countries and through other measures, such a strategy may end up bringing more harm than good………..
a senior official of an economy-related government body said, “It is difficult for Japanese manufacturers, which can’t even build nuclear plants in their own country, to win confidence (abroad),” suggesting that the government’s strategy to export nuclear power technology in itself is unreasonable.
https://mainichi.jp/english/articles/20190104/p2a/00m/0bu/030000c
Japan abandoning ambition to sell nuclear power reactors to Turkey
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The Japanese government decided to ask for the increased coverage by Turkey as a final condition for constructing the plant. Under the current proposal, the plant is to be built by ATMEA, a joint venture of Japan’s Mitsubishi Heavy Industries Ltd. (MHI) and French nuclear plant maker Framatome, near the Black Sea coastal town of Sinop in northern Turkey. Besides the Turkish project, another plan to export nuclear power reactors to Britain by Hitachi Ltd. also faces difficulties. If both plans fail, a growth drive strategy of the administration of Prime Minister Shinzo Abe will collapse. The Turkish project has its roots in a 2013 joint declaration for cooperation over the construction of nuclear power plants signed by Prime Minister Abe and then Turkish Prime Minister Recep Tayyip Erdogan. Under the original plan, four medium-sized ATMEA1 reactors would be built for the start of operation in 2023……. Meanwhile, Hitachi, which also manufactures nuclear reactors, has acknowledged that it faces difficulties in completing a project to build two nuclear reactors in Britain. Chairman Hiroaki Nakanishi of the company told reporters in December that he informed the British government that the plan was “at a limit” due to a surge in project costs. Both the Turkish and British projects have been pitched directly by Prime Minister Abe, but those once promising plans now appear to be falling apart. (Japanese original by Ryo Yanagisawa and Takayuki Hakamada, Business News Department) However, the total cost estimate conducted in July 2018 by MHI for the project more than doubled from the original projection of some 2.1 trillion yen to around 5 trillion yen. The price hike occurred amid rising safety costs following the 2011 triple core meltdowns that hit the Tokyo Electric Power Co.’s Fukushima Daiichi Nuclear Power Station, as well as the finding of an active fault near the Sinop site. https://mainichi.jp/english/articles/20190104/p2a/00m/0bu/011000c |
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Costs for scrapping 79 nuclear facilities estimated at 1.9 tril. Yen

Editorial: Japan must ditch nuclear plant exports for global trends in renewable energy

5 Chiba prefecture mayors request radioactive waste storage facility for the 8th time

Enormous costs of shutting down Japan’s nuclear facilities
Costs for scrapping 79 nuclear facilities estimated at 1.9 tril. yen https://mainichi.jp/english/articles/20181227/p2g/00m/0na/001000c
December 27, 2018 (Mainichi Japan) TOKYO (Kyodo) — The state-backed Japan Atomic Energy Agency said Wednesday it would need to spend about 1.9 trillion yen ($17.1 billion) to close 79 facilities over 70 years, in its first such estimate. The total costs could increase further, as the agency said the estimated figure, which would be shouldered by taxpayers, excludes expenses for maintenance and replacing aging equipment. The JAEA plans to close more than half of the 79 facilities over the next 10 years due in part to the increased costs to operate them under stricter safety rules introduced after the 2011 Fukushima nuclear crisis. The agency, which has led nuclear energy research in Japan with its predecessors since the 1950s, owns a total of 89 facilities. Of the estimated costs, the expense for closing the nation’s first spent-fuel reprocessing plant in the village of Tokai, Ibaraki Prefecture, northeast of Tokyo, accounts for the largest chunk of 770 billion yen. It will cost 150 billion yen to decommission the trouble-plagued Monju prototype fast-breeder nuclear reactor. As for nuclear waste, the agency said about 100 kiloliters of high-level radioactive waste and up to 114,000 kl of low-level radioactive waste were estimated to have been produced but it has yet to decide on disposal locations. The Japanese government aims to restart nuclear power plants after a nationwide halt following the nuclear crisis, despite persistent concern over the safety of atomic power generation. |
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Top court orders TEPCO to pay compensation for voluntary evacuation from Fukushima

December 18, 2018 (Mainichi Japan) TOKYO — The Supreme Court on Dec. 13 upheld the lower court ruling ordering Tokyo Electric Power Co. (TEPCO) to pay about 16 million yen in compensation to a man in his 40s and his family that voluntarily evacuated Fukushima Prefecture to western Japan after the 2011 nuclear disaster.
The top court’s First Petty Bench confirmed an Osaka High Court ruling handed down in October 2017 that recognized the man had developed depression due to the disaster and became unable to work. It marked the first time that a ruling awarding compensation to voluntary evacuees from the Fukushima Daiichi Nuclear Power Station disaster has been finalized by the top court, according to a legal team for victims of the nuclear crisis. ….. https://mainichi.jp/english/articles/20181218/p2a/00m/0na/021000c
Sun setting on Japan’s nuclear export sector

Japan’s Move to amend nuclear damage law will push the burden of risk on citizens: CNIC

Japan’s nuclear export industry about to get the fatal blow
Sun setting on Japan’s nuclear export sector http://www.atimes.com/article/sun-
setting-on-japans-nuclear-export-sector/
Post-Fukushima cost overruns may kill a giant power project in Turkey, and there are few other deals to replace it
The Sinop plant project in Turkey was seen as Japan’s best chance for an industry – battered and bruised after the 2011 tsunami and triple meltdown at Fukushima – to put together a workable export strategy that did not break the bank of potential international customers.
Aside from Sinop, the Japanese industry has only one viable export project still upcoming: Hitachi’s bid to build two reactors on the island of Anglesey in Britain. And even that deal is looking shaky.
Mitsubishi Heavy Industries (MHI) has not pulled the plug yet on its stake in the four-reactor project on Turkey’s Black Sea coast, but a slew of domestic media reports and talk in Tokyo, suggests that, in the face of seemingly ever-rising construction costs to meet new safety standards that have been put in place since the 2011 Fukushima disaster, the company will bail.
Fukushima legacy
When the deal was signed with Ankara in 2013, the ownership profile was: 65% awarded to a consortium made up of MHI, Itochu, France’s Areva, and GDF Suez. The other 35% was covered by Turkey’s electric power utility, Elektrik Uretim.
However, in April, Itochu pulled out of the consortium, citing cost overruns. That left the consortium with 51%, and the remaining 49% owned by the Turkish utility.
Without Mitsubishi the viability of the project is in question, sources say, unless Turkey can find a new partner or is willing to take on the project without its largest foreign partner. The Russians, who are building a nuclear complex on Turkey’s southern Mediterranean coast, might be interested.
According to Kyodo, a thorough cost evaluation was to be completed by the end of this year. Itochu waited for the report to be released before bailing out of the deal. MHI is apparently waiting for the study to be completed before deciding its next move.
When the deal with Mitsubishi was signed in 2013, the estimated cost was $18 billion for four 1,100-megawatt nuclear power plants. But overall costs have soared, passing $42 billion in April – when Itochu withdrew, and is now put at about $44 billion.
Cost increases are nothing new in the nuclear power industry, but have been exacerbated in recent years by expensive adjustments phased in to meet more stringent safety concerns following the earthquake and tsunami that destroyed four units of the Fukushima Daiichi plant. The Sinop cost rises, however, also encompass other problems encountered in construction.
Fukushima, one of the most serious nuclear accidents in history, turned most of Japan against nuclear power. Before March 11, 2011, Japan had 54 nuclear plants. All were shut down after the accident and some are slowly returning to service having passed scrutiny by the regulator. Five are expected to restart within the next five years, and eight will likely be decommissioned. But prospects for the remaining plants are unclear.
Aware that no new nuclear plant may ever be built at home amid the anti-atomic public mood, Japan’s nuclear vendors have turned to overseas exports as the Fukushima accident does not appear to have destroyed the Japanese industry brand in other countries.
Endgame for nuclear exports?
If Mitsubishi does pull out of the huge project in Turkey it will be a blow to Prime Minister Shinzo Abe, who sees international exports of nuclear technology as an important way to boost the economy. On his many trips abroad, he often acts as a salesman for nuclear exports. For example, it was a topic of discussion with Turkish President Recep Erdogan on the sidelines of the G-20 meeting in Argentina.
Details of the conversation were not revealed, but it would be a good bet that they discussed the Sinop project with the threat of Mitsubishi hanging over them, and that Abe sought ways to keep the project viable.
Meanwhile, it is not just MHI that may have doubts about the sector. Japan’s nuclear export industry has suffered plenty of setbacks in the seven years since Fukushima. Questions about the future of the sector hang over all three main players in the sector.
Toshiba, one of Japan’s big-three nuclear constructors, recently pulled out of the nuclear power business overseas after incurring huge losses in the United States.
Toshiba has also suffered something of an administrative meltdown in its quest to win construction contracts in the US. In February it finally unloaded it money-losing American subsidiary, Westinghouse, for $1 billion less than it paid to acquire the company 10 years ago.
If the export program is to remain viable, it may be in Wales, where the British government is seeking to build a two-reactor nuclear power plant on the island of Anglesey. Among those bidding for the project is Japan’s third nuclear constructor, Hitachi, through a subsidiary called Horizon Nuclear.
In the nuclear world, there are constructors – like MHI, Toshiba and Hitachi – and operators, who run the plant after it is completed, and they are not always the same. Japan learned from Korea’s successful bid to build six nuclear plants in the United Arab Emirates that offering to build and also run them – a one-stop service – is key to making sales.
Hitachi is teaming up with the Japan Atomic Power Company, which operates two plants in Japan (although both are currently shut down pending the review by regulators). The plan is to present the British with a package deal.
Now, there are worries that Hitachi might pull out of the British project. Chairman Hiroaka Nakanishi was quoted in the Times of London saying his company was “facing an extreme situation,” and that a final decision on whether to stay with the project or leave it will be made next year.
If Mitsubishi does, as is widely expected, pull out of the huge project in Turkey, the only egg left in Japan’s overseas nuclear export basket will be Wales.
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