Mitsubishi Heavy Industries Ltd. is almost finished designing its next-generation nuclear reactor, paving the way for construction to begin as Japan shifts its energy focus to develop more atomic power.
The Tokyo-based company can start building the facility once a site for it in Japan is established and some late-stage tests are completed, according to President Seiji Izumisawa. It will take about 10 years to construct and start operations.
The Japanese manufacturer is developing the SRZ-1200, an advanced light water reactor, in coordination with major Japanese utilities including Kansai Electric Power Co. Izumisawa didn’t comment on specific sites where it could be built.
Japan is part of a nuclear revival taking place globally, as countries look for emission-free electricity and energy security. Atomic plants are still a politically sensitive issue in Japan after the 2011 Fukushima disaster. Yet Prime Minister Fumio Kishida’s government in its “green transformation” plan last year said it will utilize renewables and nuclear “to the fullest extent.”
Japan started the review process of its national energy strategy last month, which may dictate the country’s future power mix beyond 2030. As part of the strategy, the trade ministry is considering allowing expansion of nuclear power plants as old reactors are being decommissioned, according to a report.
The firm had 46% of the global market share for large-scale turbines in fiscal 2023, and has seen strong demand from countries including the US and China, Izumisawa said. Demand from Southeast Asia could also rise in the future as the region develops and the need for electricity increases, he said.
Mitsubishi Heavy also targets doubling its revenue from its defense and space business to ¥1 trillion by fiscal 2026, on the back of Japan’s recent move in bolstering defense spending. The company is looking to expand employees working in the defense segment by 30%, and may also consider expanding production capability by building additional plants, Izumisawa said.
While the company benefits from the weak yen due to its exports, Izumisawa said that the currency level today “feels a little too weak,” saying that it impacts predictability and raises prices and energy costs for individual consumers. “It would be better if the yen remained at a stable level,” he said.
Source: Financial Post
