• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Mitsubishi Heavy Industries Ltd., Luminant Agree to Joint Venture For Development of New Nuclear Generating Units

Posted on: Friday, 19 September 2008, 15:00 CDT

Mitsubishi Heavy Industries, Ltd. (MHI), and Luminant announced today they have entered into an agreement to form a joint venture to advance the development of two potential new nuclear reactors at Luminant's Comanche Peak facility located near Glen Rose, Texas.

Later today, Luminant will file a combined license (COL) application with the Nuclear Regulatory Commission (NRC). The application is expected to request approval for an expansion of Luminant's existing Comanche Peak Nuclear Power Plant, using MHI's 1,700-megawatt, US-Advanced Pressurized Water Reactor (US-APWR) design.

If the parties close on the joint venture, Luminant will retain an 88 percent ownership share and MHI a 12 percent stake. The joint venture is expected to continue development of the COL and fund project development costs during the period preceding issuance of the combined license. The joint venture's closing is currently anticipated to occur prior to year end.

"The US-APWR is the right technology, MHI is the right partner and this joint development is the right commercial focus for our team," said Mike Blevins, Luminant executive vice president and chief nuclear officer. "This is an important step forward into expanding the use of safe, dependable, clean nuclear power here in Texas."

"This joint venture will enhance the relationship between both companies, but more importantly, the construction and operation of the US-APWR at Comanche Peak will help ease the growing demand for electricity in the State of Texas," said Hiroshi Inoue, executive officer and senior vice president of MHI's nuclear energy systems headquarters.

Luminant selected MHI's US-APWR as its technology of choice in March 2007, following an extensive evaluation of prospective nuclear generating technologies. Each new reactor unit is capable of producing 1,700 megawatts, or enough nuclear energy to power almost 875,000 average Texas homes.

MHI established Mitsubishi Nuclear Energy Systems as a wholly owned subsidiary in Washington, D.C., in July 2006, to introduce the US-APWR to the U.S. market. MHI submitted an application to have the US-APWR design certified by the NRC in December 2007; that application is currently under NRC review. Mitsubishi Corporation, an MHI partner, is also supporting this project.

The US-APWR has a larger core, new automatic safety systems and other advanced design elements. MHI built the existing 23 pressurized-water reactors operating in Japan and has a 24th under construction. MHI also provides a wide range of maintenance services to the plants once they are in operation.

Luminant and MHI will seek official support for financing from the U.S. and Japanese governments. Luminant has submitted a loan guarantee application form to the U.S. Department of Energy and is finalizing Phase I application information for submittal in accordance with the established guidelines.

About Mitsubishi Heavy Industries, Ltd.

Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 3,203 billion yen ($31.9 billion) in fiscal 2007 (year ended March 31, 2008). MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.

For more information, please visit the MHI website (http://www.mhi.co.jp).

About Mitsubishi Nuclear Energy Systems Inc.

Mitsubishi Nuclear Energy Systems, Inc. (MNES), headquartered in Washington, D.C., was established by MHI as its wholly owned subsidiary in July 2006, to introduce the US-APWR to the U.S. market. MNES has also established an office near Dallas to further strengthen its coordination with Luminant.

For more information, please visit the MNES website (http://www.mnes-us.com).

About Luminant

Luminant, a subsidiary of Energy Future Holdings Corp. (EFH), is a competitive power generation business, including mining, wholesale marketing and trading, construction and development operations. Luminant has over 18,300 megawatts of generation in Texas, including 2,300 megawatts of nuclear and 5,800 megawatts of coal-fueled generation capacity. Luminant is also the largest purchaser of wind-generated electricity in Texas and fifth largest in the United States. EFH is a Dallas-based energy holding company that has a portfolio of competitive and regulated energy subsidiaries, primarily in Texas. Visit www.luminant.com or www.energyfutureholdings.com for additional information.

Source: Business Wire

More News in this Category