Toshiba Corporation (TOKYO:6502) today announced that it will
invest USD 300 million in a new company formed by NRG Energy, Inc, one
of the largest diversified energy providers in the United States. The
recently formed company, Nuclear Innovation North America LLC, will
promote the deployment of ABWR (advanced boiling water reactor)
nuclear power plants in North America.
The Nuclear Innovation North America also will support the smooth
development of the South Texas Project (STP) units 3 and 4 projects.
NRG and CPS Energy, the electric utility for San Antonio, Texas, are
currently developing STP units 3 and 4. These two plants, currently at
the permitting and construction planning stage, will be the first ABWR
nuclear power plants in the United States and are scheduled to start
operation in 2015 and 2016, respectively.
Toshiba last year signed a project services agreement for STP
units 3 and 4, under which the company is carrying out key
pre-engineering work and procuring major components with long lead
times. Toshiba was recently selected by NRG and CPS Energy to be the
prime contractor for the development of the South Texas Project (STP)
units 3 and 4 nuclear power plants. Toshiba is now responsible for all
engineering work prior to the start of plant construction, for the
procurement of major equipment and components, and for supporting the
licensing process. The final contract for the two plants, including
the construction phase, is expected to be finalized by this summer.
As a partner with the Nuclear Innovation North America, Toshiba
will also serve as the prime contractor for all future Nuclear
Innovation North America projects.
"Our partnership with NRG is an important step toward establishing
Toshiba´s presence in the US ABWR business," said Mr. Yasuharu
Igarashi, Executive Vice President of Toshiba´s Power Systems Company.
"By combining the expertise in ABWR plant construction and project
management know-how that we have cultivated in Japan with NRG´s
financial capabilities, and its experience in permitting and
developing large-scale projects across the United States, plus its
existing customer relationships, we look forward to establishing a
strong, closely focused collaboration. We expect the new company to
achieve a powerful synergy and carry forward the construction of new
plants in North America."
Toshiba will also continue to promote the nuclear power business
and its capabilities, and to support potential customers, through
Toshiba America Nuclear Energy Corporation, the new US subsidiary that
Toshiba established at the beginning of January this year.
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Outline of New Company:
Company name: Nuclear Innovation North America LLC
Chief Executive Officer: Steve Winn
Establishment: February 2008
Ownership: NRG 88%; Toshiba 12%
(effective upon closing anticipated in May)
Location: New York, New York, U.S.A. (plan)
Business: Development of STP 3 and 4 and additional
ABWR nuclear power plant construction
projects, including support for planning
and licensing
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