10 May (NucNet): Tokyo Electric Power Company has reached an agreement to take a 155 million US dollar (USD) (119 million euro) stake in the project to build two 1,350-megawatt advanced boiling water reactors at the existing South Texas nuclear power plant site.
The agreement will make Tepco the first Japanese utility to take a stake in an overseas nuclear power plant.
Nuclear Innovation North America (NINA), the nuclear development company jointly owned by NRG Energy and Toshiba Corporation, has reached an agreement for Tepco to take a 10% share of NINA Investments Holdings’ interest in the proposed units 3 and 4 at the plant.
The agreement will take effect once a conditional commitment for a US Department of Energy (DOE) loan guarantee is secured for the project.
The USD 155 million includes a USD 30 million option payment to NINA Investments Holdings, giving Tepco the option of buying an additional 10% share of the company for an additional USD 125 million within one year.
Tepco has acted as technical consultant on the South Texas-3 and -4 project since it began in 2006.
NINA said in a statement that provided the project receives its combined operating licence (COL) from the Nuclear Regulatory Commission and its loan guarantee commitment from the DOE on schedule, construction is expected to begin in 2012, with one unit coming online in 2016 and the other in 2017.
>>Related reports in the NucNet database (available to subscribers)
Toshiba To Help With Two New South Texas Project Units (World Nuclear Review No. 32, 10 August 2007)
NRG Files Application For Two New South Texas Units (News in Brief No. 29, 25 September 2007)
USD 1 Billion Agreement Paves Way For South Texas Project (News in Brief No. 35, 18 February 2010)
