Japanese consortium takes strategic gamble on nuclear power for the developing world

Japan is totally devoid of domestic sources of natural energy reserves, ensuring an ever expanding, innovating and exploring energy sector.

There are currently 55 operating nuclear power plants in Japan, as compared to a mere 65 in the US. Ten keiretsu companies own and operate 52 Light Water Reactors (LWR). Private contractor Japan Atomic Power Corporation (JAPC) operates three more LWRs. Two nuclear plants are currently under construction, and another 11 that are in advanced planning stages.

Six Japanese companies have announced an office in preparation for a new company to support Japanese involvement in new nuclear projects around the world. The powerful consortium comprises utilities Tokyo Electric Power Co (Tepco), Chubu Electric Power Co and Kansai Electric Power Co, and plant manufacturers Toshiba Corporation, Hitachi and Mitsubishi Heavy Industries (MHI). The new office is being established in preparation for the launch of a new company, tentatively named International Nuclear Energy Development of Japan, which the consortium says will be engaged in activities to establish proposals for nuclear power plants in so-called ‘emerging countries’. Considering its been nearly thirty years since the United States completed construction on its youngest nuclear reactor, which may well qualify us to be considered an ‘emerging country’

Tokyo Electric, Chubu Electric and Kansai Electric all trade on the Nikkei, basically moving in concert with each other since the fall from market peaks in early 2007. Since April 2010, these three have outperformed the Nikkei 225 considerably, though are still lagging heavily since the highs. Mitsubishi, Hitachi and Toshiba are perhaps the three most powerful keiretsu, each with several subsidiaries listed on exchanges all around the world. These companies can be bought on the NYSE, though as mega-conglomerates, their stock price will not see a sustained rally on news of a long-term infrastructure consortium.
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