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Westinghouse in final talks to build US nuclear reactors

Japan’s Toshiba Corp said yesterday that its unit Westinghouse Electric Co is in final talks with two power companies about building four next-generation nuclear reactors in the US.

If Westinghouse gets the orders, they would be the first AP1000 models to be built in the US, Toshiba spokesman Keisuke Oomori said.

Toshiba has been in talks with Scana Corp and Southern Co to Carolina and two in Georgia, he said.

Toshiba shares rose on the news, climbing 5.6 percent in the Tokyo Stock Exchange’s morning session to ¥777 (US$7.73).

Winning the orders would boost sentiment for the company and may create a view that the AP1000s will become a popular reactor in the nuclear power plant market, analysts said.

The Nikkei Shimbun reported earlier in the day that the Japanese electronics conglomerate will build four nuclear power plants in the US worth a combined ¥1.4 trillion.

The Toshiba spokesman did not confirm the value of the deals.

On Tuesday, Scana said its unit South Carolina Electric & Gas; Gas Co reached an agreement with Westinghouse and Shaw Group Inc for the purchase of long-lead-time materials for up to two AP1000 nuclear power generators.

The Columbia, South Carolina, company said the purchase keeps it on schedule to build new nuclear generation capacity and have a plant online by 2016.

Toshiba acquired Westinghouse in 2006 for US$4.2 billion. Since moving under Toshiba’s umbrella, the US company has received orders worth ¥1 trillion to build new nuclear plants in China.

The US has built no new nuclear power plants since 1979’s Three Mile Island accident. It is now taking a fresh look at nuclear power amid concerns over energy security. A new energy policy promotes the power, and some 30 reactors are planned over the next 20 years.

Toshiba and Westinghouse are in a fierce battle with the alliance of Mitsubishi Heavy Industries Ltd and French firm Areva, and the team of General Electric Co of the US and Hitachi Ltd to win orders for the proposed plants.
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