How can Japan's nuclear technologies be maintained? This is a crucial issue that needs to be addressed.
Hitachi, Ltd. has formally decided to freeze a project it had been advancing for the construction of a nuclear power plant in the central-western part of Britain.
It is understood that ascertaining the profitability of the project has been a challenge, given the scale and huge cost of about 3 trillion yen involved. Factors behind Hitachi's decision include the worldwide strengthening of nuclear power station safety standards.
Hitachi has not yet decided how long the freeze will continue. A withdrawal from the project is also under consideration. For the time being, the company's nuclear power projects will be focused on the restarting of plants and decommissioning of reactors.
The export of nuclear technologies has played a role in Japan's growth strategy. Exporting nuclear technologies is also significant from the viewpoint of maintaining and developing domestic nuclear expertise.
Although the suspension is a management decision made based on the assessment of increasing costs, it is extremely regrettable that Hitachi has put the project on hold.
A matter of serious concern is the strong probability that the export of nuclear power plant technology involving Japanese companies will effectively drop to zero.
From around 2010, overseas nuclear power plant projects emerged in succession. However, Toshiba Corp., after suffering a huge loss in the construction of a nuclear power plant in the United States, pulled out from overseas nuclear projects. Ballooning construction costs have also put a nuclear project undertaken by Mitsubishi Heavy Industries, Ltd. in Turkey at risk.
In the wake of the 2011 disaster at Tokyo Electric Power Company Holdings' Fukushima No. 1 nuclear power station, a difficult situation has continued over the construction of new plants in Japan.
Policy overhaul vital
If nuclear exports stop, Japanese firms will likely lose opportunities to apply their advanced technologies and expertise. Fostering talent will also be difficult. It can be said that the situation is critical.
Chinese and Russian manufacturers, wholly supported by their governments, have been increasing their presence in the world's nuclear power market. To prevent the two countries from taking an advantageous position in nuclear technology, it is imperative for Japanese companies to lower costs while ensuring safety. The government, for its part, should also address the issue.
Japanese firms are called on to take part in the competition for the development of world-class cutting-edge technologies, including small modular reactors that are said to be cheap and highly safe.
The government's faltering nuclear policy is also a problem.
The nation's basic energy plan regards nuclear power as a key source of electricity but does not refer to the replacement or construction of new nuclear reactors.
Nuclear power generation ensures low fuel costs and a stable power supply. Nuclear power can be generated without emitting carbon dioxide and thus is a superior energy source from the viewpoint of protecting the global environment. A certain degree of nuclear power utilization is indispensable for ensuring a stable energy supply.
Superannuated nuclear reactors will be decommissioned one after another. Unless they are replaced steadily, it is clear that it will be impossible for nuclear power generation to serve as a key power source. A sweeping overhaul of the nation's nuclear power policy is imperative, including how the government will be involved.
(From The Yomiuri Shimbun, Jan. 19, 2019)
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