NRG, Toshiba Form Company to Develop ABWR Projects in North America

NRG Energy Inc. has partnered with Toshiba Corp. to create a new company to pursue new nuclear energy projects. Nuclear Innovation North America LLC will focus on “marketing, siting, developing, financing and investing in advanced design nuclear projects” in the United States and Canada, NRG Energy said in a news release.

In addition to a $300 million investment over the next six years and 12 percent equity ownership, Toshiba Corp. will serve as the prime contractor on all of the joint venture’s projects. Half of Toshiba’s investment will support development of two new South Texas Project reactors (STP 3 and 4). The other half will focus on new projects and accelerating development and deployment of additional Advanced Boiling Water Reactor (ABWR) projects in North America.

“New advanced nuclear is a key part of the future for affordable, reliable and zero-carbon baseload generation not only in Texas but throughout the United States,” said David Crane, NRG president and CEO. “And after a 30 year hiatus, we believe the most cost effective and risk-managed way to reintroduce nuclear, whether a company is operating in a rate base or a merchant environment, is by working with the companies that have been so successful with on-time, on-budget nuclear construction in other countries.

The new company will utilize expertise NRG Energy has gained developing STP 3 and 4 and Toshiba’s design and construction experience with the ABWR. The company said it will employ a “disciplined approach” to nuclear development and investment in ABWR projects,” with a structure that aligns the interests of the developer and prime contractor “to optimize the schedule, performance and costs of its projects while sharing risk in a manner consistent with the requirements of traditional project finance,” NRG said.