Will Lithuania's Referendum Stop the Construction of a New Nuclear Power Plant?

Hitachi's spokesman says the referendum result was "regrettable", according to Daily Yomiuri Online (English).

This referendum is "consultative", meaning it doesn't have the enforcing power. The government will have one month to decide on the resolution. (Wikipedia: Referendums in Lithuania)

Only a minor bump in the road for Hitachi, most likely.

From Daily Yomiuri Online in English (10/17/2012; emphasis is mine), which has more information than the article that appeared in Japanese Yomiuri (10/15/2012):

Hitachi's nuclear plan hits bump / Lithuania referendum on construction project could hurt export strategy

A Lithuanian referendum result has cast a shadow over Hitachi Ltd.'s strategy to increase sales from its nuclear business--and could affect other Japanese companies in the nuclear industry.

Hitachi has signed a provisional contract with the Lithuanian government to construct a nuclear plant in the Baltic nation. But in a nonbinding referendum held Sunday, 62 percent of Lithuanian voters rejected the project, a result that could make the Lithuanian government review it.

A Hitachi spokesman said the result of the referendum was "regrettable."

"We'll closely watch how the Lithuanian government responds to the result," the spokesman added.

Hitachi signed a provisional contract with the Lithuanian government in July 2011 to construct the latest model of a boiling water reactor in Visaginas, eastern Lithuania. The project will cost 400 billion yen to 500 billion yen, and the Lithuanian government plans to use the reactor to supply electricity to all three Baltic countries, including Estonia and Latvia, from the early 2020s.

The Lithuania deal was the first inked by a Japanese company to build a nuclear reactor overseas since the crisis began at the Fukushima No. 1 nuclear power plant in March 2011. The contract showed the safety of Japan's nuclear technology was recognized internationally, to a certain degree.

Hitachi plans to increase sales of its nuclear businesses from 160 billion yen in March to 360 billion yen in March 2021. However, observers said the company will have to revise its strategy if Lithuania does a U-turn on its nuclear policy.

Other Japanese nuclear power plant companies are concerned the result in Lithuania might affect sentiment in more nations considering building nuclear reactors.

Toshiba Corp. is competing for an order to build a nuclear plant in Turkey with South Korea, Canada and other countries. Mitsubishi Heavy Industries Ltd. is trying to export a nuclear power reactor to Jordan.

As these companies have no prospect of building a new nuclear plant in Japan since the government reviewed the nuclear energy policy after the Fukushima crisis, they must try to expand their businesses overseas.

However, some experts said the real issue of Lithuania's referendum was the massive spending that would be required for the construction at a time of financial difficulties, not the government's nuclear policy itself.

Many developing countries, including Lithuania, need to increase their power supply to sustain economic growth.

"Those countries have high expectations for nuclear plants that can stably supply a huge amount of electricity," an official of a Japanese nuclear company said.

I think I know what's coming next: a massive amount of interest-free loan from the Japanese government to Lithuania so that it can afford to have a state-of-the-art nuclear power plant.

Newsweek/Bloomberg article says the Lithuanian referendum result may prompt Estonia to commission a second oil shale-fired power unit.

Estonia's oil shale deposits account for 90% of Estonia's power source, and 17% of total deposits in the European Union, according to wiki.

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Photograph of Reactor 4 Containment Vessel Lid Removal: Hitachi Banner Proudly Displayed

as it should. The workers who did the work were from Hitachi-GE Nuclear Energy and from Hitachi Plant Engineering and/or their subcontractors, judging by the photographs.

In the video also released by TEPCO, the workers on the ground were blurred, supposedly to protect privacy, and half the banner was hidden as the workers go back and forth in front of the removed lid.

But in the photographs, the only modifications TEPCO did was to blur the names of the workers on their backs. No need to blur the faces of the workers in the video anyway, because they all wore full face masks.

The work required 36 workers in two groups (18 each). The workers were exposed to maximum 0.39 millisievert for the work that took 15 minutes on August 10, according to the information TEPCO released on August 10, 2012.

(Click on the photo to enlarge.)

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Photos and Videos of Workers Removing Two Unused Fuel Assemblies from Reactor 4 Spent Fuel Pool at #Fukushima I Nuke Plant, 7/18,19/2012

TEPCO released still photographs of the July 18 and 19 operations to remove two new (unused) fuel assemblies from the Reactor 4 Spent Fuel Pool.

The company also released 4 short videos of the July 19 operation. They look like videos taken from someone's mobile phone (i.e. bad). TEPCO had to blur the names on the backs of the workers to hide their identities, making poor-quality videos even worse. From the still photographs, the operations on July 18 and 19 were identical.

In the photographs, you can see that the workers on the platform were from Hitachi. They are seen hosing down and wiping off a tall, black fuel assembly as the assembly is being pulled out by the crane. The assembly looks clean and intact.

From TEPCO's Photos and Videos Library, 7/19/2012, photographs from the 7/19/2012 operation (click to enlarge; there are more photos at the link):

I'll upload the videos later.

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Lithuania to Hold a Referendum on Nuclear Power Plant to Be Build by Hitachi-GE

From Reuters (7/16/2012; emphasis added):

Lithuania to hold a consultative vote on nuclear plant

(Reuters) - Lithuania will hold a non-binding referendum on the centre-right government's planned new nuclear power plant on the same day as a parliamentary election, in a move that could boost support for the opposition and derail the project with a big vote against.

Parliament's decision on Monday to hold the vote puts energy issues at the centre of the election, with the opposition and government split on how to reduce country's energy dependence on its former Soviet master, Russia.

Polls have showed public support for nuclear energy in Lithuania wane following the Fukushima disaster in 2011 in Japan, with opinion now roughly divided.

The government has proposed building the Visaginas plant on the site of the Ignalina plant in eastern Lithuania that was shut in 2009.

But the main opposition party in the current parliament, the Social Democrat Party, said the government should focus on renewable resources and renovating houses to save energy and rather than on a costly nuclear power plant project.

"We should stop dreaming about nuclear power, benefits of which we might see or might not see in only 30 years," Birute Vesaite, deputy chair of the party, told parliament.

Centre-left parties such as the Social Democrats lead the opinion polls before the parliamentary election.

Prime Minister Andrius Kubilius, who opposed the referendum, said it was causing doubts about commitments made by his coalition government.

Parliament last month voted, with a narrrow margin, in favor of giving the government a go-ahead to work towards a final construction deal with U.S.-Japanese alliance Hitachi-GE Nuclear Energy for the 1,350 MW ABWR reactor.

In 2011, Lithuania imported 65 percent of its electricity, mostly from Russia, making it the European Union member most dependent on power imports.

Lawmakers voted 62-39 to hold the referendum on Oct. 14, the parliament press office said. Eighteen abstained.

(Reporting via Oslo Newsroom; Editing by Alison Williams)

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Japanese Magazine Says Hitachi May Be Pulling Out of Nuclear Business (or Maybe Not..)

The subscription-only magazine called "FACTA" has the first paragraph of the article available for everyone.

It says:

Hitachi has been enjoying the stellar quarterly results, after getting rid of loss-making HDD manufacturing. The company has completely pulled out of manufacturing TV sets in Japan. The only burden now is the nuclear business. Hitachi has the smallest nuclear business compared to Toshiba and Mitsubishi Heavy Industries, and we're hearing from Hitachi insiders that the company is "moving out of nuclear". The senior management vehemently denies it as "impossible", but Hitachi today is not what it used to be...

It may just mean the company is getting out of building new reactors. The company is still part of the government's working group to develop new technologies for decommissioning Fukushima I Nuclear Power Plant. The company could commercialize these technologies to sell to the world, I suppose.

Hitachi is also a big player in incineration plants and equipments, and alternative energy (wind turbines).

The company looks set to profit no matter which direction Japan may take. The same can be said for other two nuclear companies, Toshiba and Mitsubishi Heavy Industries. They are also big in incineration plants and wind turbines.

(UPDATE)

Hitachi just secured an agreement with the Lithuanian government to build a nuclear plant in Lithuania. (Nuclear business is too good to pass up.)

From Power Engineering Magazine (3/30/2012):

Hitachi Ltd. (NYSE: HIT) said it has agreed to a concession agreement with the Lithuanian Energy Ministry regarding construction of the Visaginas nuclear power plant planned for Lithuania. The concession agreement will be officially concluded after the approval by the Lithuanian parliament which has been in session since March 2012.

Lithuania is planning to construct a new nuclear power plant in Visaginas in the northeastern part of the country, with the aim of having an operational plant in 2021. In 2008, the project company Visagino Atomine Elektrine (VAE) was established to further the development of the project and conduct negotiations relating to investment into the Visaginas Nuclear Power Plant. In 2009, the Lithuanian parliament passed a bill permitting the construction of a nuclear power plant in Visaginas.

Hitachi and Hitachi-GE Nuclear Energy Ltd. proposed to provide an Advanced Boiling Water Reactor (ABWR) to the Lithuanian government. Hitachi was selected as the strategic investor in July 2011, and in December 2011 initially signed the term sheet for the concession agreement.

Following the approval of this agreement by the Lithuanian parliament, the concession for power plant construction will be granted to a project company to be established by investment from Hitachi, VAE and regional partners. The project company will conduct negotiations regarding engineering, procurement, and construction. The project company will aim to conclude contracts by around summer of 2012.

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Business as Usual for Nuke Industry as Hitachi-GE Won Negotiating Right with Lithuanian Government for Nuke Plant in the Country

As the cattle farmers despair over radioactive hay and cattle, and more locations found with very high radiation (hot spots and hot areas), the Japanese government plans to shrink the planned evacuation zone as it pushes a nuclear power plant in Lithuania.

The Hitachi-GE joint venture has won the right to negotiate with the Lithuanian government to build a nuclear power plant in the country, beating Toshiba/Westinghouse. Another successful government-industry joint effort to push super-large "infrastructure" projects in developing countries throughout the world.

Nuclear accident? What accident? Have you heard of a nuclear accident recently, which happened on Hitachi-GE reactors? Lithuanians?

Chief Cabinet Secretary Edano commented on the success of Hitachi-GE during the press conference on July 15 as follows (according to J-Cast News, 7/15/2011):

「今回の事故があっても、日本の技術力について他国から評価をいただけているということについてはポジティブに受け止めたい」

"Despite the Fukushima accident, the Japanese technology is still highly valued by other countries. It is very positive."

Asked about PM Kan's remark that the nuclear technology is an "uncontrollable technology", Edano said:

"I don't remember the context of his remark, so I cannot comment."

Edano, Kaieda (Minister of Economy, Trade and Industry) and Hosono (PM's assistant and Minister in charge of the Fukushima accident) have been very close these days as if they were identical triplets (just look at this great shot from NHK the other day; from left, Edano, Kaieda, Hosono), planning for the "stress test" for the nuclear power plants so that they can be re-started ASAP and seemingly going around the prime minister if not avoiding him.

The Mitsubishi-AREVA JV has won the right to negotiate with the Jordanian government for their first nuke plant in the country. Toshiba, who owns 100% of Westinghouse Electric, has been pushing for the Mongolian fuel processing plant.

Business as usual for the world's nuke industry.

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More on TEPCO's South Texas Nuke Plant Investment

that TEPCO Chairman Katsumata mentioned in the yesterday's press conference.

From Skadden law office announcement in May 2010 [emphasis added]:

Skadden is representing the Tokyo Electric Power Company, Inc. (TEPCO), which entered into an agreement with Nuclear Innovation North America LLC, a nuclear development company jointly owned by NRG Energy, Inc. and Toshiba Corporation, to acquire a 10 percent interest in the planned expansion of the South Texas Project nuclear plant. TEPCO's investment, announced May 10, marks the first time a Japanese utility has invested in an overseas nuclear power project. This will be the first project in the United States to utilize Advanced Boiling Water Reactor technology.

"Advanced"? After the GE-designed, Toshiba-made boiling water reactor in the Reactor 3 at Fukushima I blew up? I suppose TEPCO and Toshiba have since refined the technology after they installed the Reactor 3 at Fukushima I Nuke Plant in 1974.

Advanced boiling water reactor, according to wiki, is currently offered by GE Hitachi Nuclear Energy. Fukushima I Nuke Plant's Reactor No.6 and 7, whose construction was scheduled to start in April 2012, were planned to be ABWR.

And the Texans seem to remain bullish on nuclear energy and believe TEPCO will not pull out.

From Platt's Energy Week (emphasis added; 3/15/2011):

Japan's still-unfolding nuclear crisis has shaken investor confidence in prospects for a US nuclear renaissance, but it remains unclear if the March 12 accident at a Japanese nuclear plant in the aftermath of a 9.0 earthquake and subsequent tsunami will slow or even stop US nuclear projects now in advanced stages of development.

... The plan by Nuclear Innovation North America, an 88/12 joint venture of NRG Energy and Tokyo-based Toshiba, to add two 1,350-MW advanced boiling water reactors at the South Texas nuclear project in Matagorda County, Texas, faces perhaps the most immediate uncertainty.

Toshiba supplied the GE-designed boiling water reactor at Fukushima Daiichi Unit 3, whose reactor roof exploded on Monday. And both that unit and Fukushima Daiicchi Unit 1, which suffered a similar fate on Saturday, are owned and operated by Tokyo Electric Power Co., which last May committed to buy up to a 499-MW stake in the South Texas nuclear expansion.

NRG spokesman David Knox said Monday that it is too soon to comment on whether the Japanese nuclear crisis might lead Tepco to shift its attention to rebuilding its crippled nuclear generation fleet at home and withdraw its plan to invest in US nuclear capacity.

"Our focus is on our friends and partners" in Japan, Knox said. "There will be time to assess the impact [of Japan's nuclear crisis] on nuclear development in the US in the days and weeks to come."

Tepco said last May that it will pay NINA $125 million for a 10% share of the joint venture, which owns a 92.375% stake in the South Texas expansion project, once the Department of Energy has issued a conditional commitment to the project's developers for a federal loan guarantee.

Tepco also agreed to pay NINA $30 million for an option to buy an additional 10% stake in NINA about a year later for another $125 million. Tepco's initial 10% stake in NINA will give it a 9.2375% interest in the expansion project, and its second 10% stake will increase that interest to 18.47%, or 499 MW. CPS Energy, the San Antonio municipal utility, owns the other 7.625% stake in the expansion project.

NRG's Knox said that "nothing happens" regarding Tepco's commitment to join the South Texas expansion project until DOE has offered the project a conditional loan guarantee. The proposed loan guarantee is currently being reviewed by the Treasury Department and the White House Office of Management & Budget, he said. It would then go back to the DOE Credit Review Board for approval before being issued.

"Considering everything that's going on I wouldn't want to hazard a guess" on when that conditional loan guarantee might be forthcoming, Knox said.

Leading proponents of "new nuclear" said that they do not believe the Japanese nuclear crisis will delay or kill US projects now under development.

Please read the full article at the link.

After today's Obama's speech, Mr. Knox can rest assured that the federal loan guarantee will be forthcoming shortly.

So the Japanese are not the only delusional people. Good to know.

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