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Toshiba Seeks Share of $14 Billion US Reactor Deals

Reuters
Thursday, 3 Apr 2008 | 12:30 AM ET

Japan's Toshiba said on Thursday it is negotiating for its share of revenue from four nuclear reactor orders in the United States, which other firms estimate to be worth a total of $14 billion.

Units of utility firms Southern and SCANA have indicated they would use Toshiba's Westinghouse AP1000 reactor technology in applications to the U.S. Nuclear Regulatory Commission.

Toshiba said in a statement it is in the final stages of talks to win the orders but nothing has been decided.

Neither Toshiba nor the utility firms gave a price estimate, but other utilities have estimated the cost of adding an AP1000 reactor of similar size at about $3.5 billion.

Actual proceeds from such orders to each firm contracted can be much smaller than the headline figure, Toshiba said.

Large parts of production are contracted out, while nuclear reactor orders are subject to licensing fees to rivals such as Areva and General Electric, which both hold key patents on reactor technology.

Toshiba hopes for long-term gains through SCANA subsidiary SCE&G's authorization of Westinghouse to procure long lead time materials, spokesman Keisuke Ohmori said.

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