Japan Could Win Big If U.S. Embraces Nuclear Energy

Environmental and other concerns are moving U.S. energy utilities closer to considering the “nuclear option” for the first time in decades, but such a move may benefit the Japanese nuclear industry the most, according to a special report from Standard & Poor’s Credit Research.

The biggest credit risk factor for [U.S.] project-financed nuclear plants is construction risk, given the large capital costs, long construction periods, newer technologies and an untested regulatory process.

But since 2006, the Japanese have been successfully partnering with Western counterparts to share their considerable knowledge and experience with nuclear power, S&P said.

The Japanese players’ strengths include their cutting edge technology, experienced personnel, management know-how, and overall ability to control and coordinate projects. They developed these strengths ... by engaging in plant manufacturing over several decades and by providing maintenance services over an extended period of time.

Partnering with the Japanese could help U.S. utilities overcome high construction costs, inexperience with nuclear power plant construction and lingering safety concerns following the Three Mile Island accident almost 30 years ago, S&P said.

Comments

[jepittman:]

Something tells me the current administration is less than interested in expanding nuclear energy.

2008 Nov 09 12:22 PM

[C-Rex:]

uhhm, not what I heard.

I think all options are on the table, including "clean" coal

2008 Nov 15 11:15 PM