GE and Hitachi Make Nuclear Joint Venture Official

I know we've mentioned this news before, but in case you missed the press release earlier this week:

GE and Hitachi, Ltd. have today completed the first half of their agreement to form a global alliance of their nuclear businesses, creating one of the world’s most comprehensive nuclear power plant and services operations that will compete for new reactor projects around the world.

The global business that will operate throughout the world, excluding Japan, is called “GE-Hitachi Nuclear Energy” and officially began business today. It is 60% owned by GE and 40% by Hitachi, and will be led by the executives of GE’s current nuclear business.

In Japan, the business is planning to begin operations in early July and will be called “Hitachi-GE Nuclear Energy.” It will be owned 80.01% by Hitachi and 19.99% by GE and will be led by the executives of Hitachi’s current nuclear business. All entities will share a joint advisory committee.

With climate change and energy security concerns driving a global resurgence in support for nuclear energy, GE and Hitachi are combining their nuclear businesses to become the world’s foremost provider of advanced boiling water reactor (BWR) plants and related services. The newly allied businesses will also offer key equipment and services for pressurized water reactors (PWRs), another light-water reactor design popular in certain countries.

“Our new alliance complements and optimizes GE’s and Hitachi’s respective strengths, allowing us to offer customers a broader portfolio of technology and services backed by the industry’s most extensive and experienced advanced reactor project development supply chain,” said John Krenicki, president and CEO of GE Energy.

Congratulations to both parties. Something tells me they're going to be very busy over the next few decades.