Japanese eye investment in Australian nuclear rollout
Jun 21, 2024
Tokyo | Japan’s giant energy trading houses would consider helping to pay for a nuclear rollout in Australia in return for decades-long investment returns, industry insiders say.
The Coalition’s announcement that it would build seven nuclear power plants sparked a flurry of conversations in Tokyo this week around how Japan’s largest power players could become involved.
Investment bankers, trade liaisons and energy company representatives are understood to be quietly costing out how development of a nuclear supply chain in Australia might work, should Peter Dutton’s plan eventuate.
Japan’s own nuclear industry is re-emerging as a core tenet of the island-nation’s energy security strategy alongside renewable energy. These sources are replacing the country’s LNG demand, which has fallen substantially over the last several years.
Energia Group and J-Power are constructing new nuclear reactor plants in north-west and central Japan, while Mitsubishi Heavy Industries and Kansai Electric Power have recently reopened plants that were shuttered following the Fukushima disaster in 2011.
Mike Newman, former trade commissioner for the NSW government, said Japanese investment houses like Mitsubishi Heavy Industries have investment strategies like Canada’s Brookfield.
“The Japanese have been thinking about [Australian nuclear] for several years,” Mr Newman said“It’s the kind of investment that aligns with their big picture strategy, and they have plenty of experience building and operating these kinds of assets.”
Mr Newman said Japanese companies would also accept losses in the early part of any deal as well as provide low-cost financing over long time frames, such as 50 years.
South Korea could also be a possible investment partner for any nuclear program in Australia.
In March, Korea Electric Power Corporation, better known as KEPCO, finished building four nuclear energy plants in Barakah in the United Arab Emirates. The $US20 billion project began in 2009, and marked South Korea’s first export of a homegrown atomic power plant.“Developing nuclear in Australia would certainly pique their interest,” Ross Gregory, partner at New Electric Partners and chairman of AustCham Korea, said. “They’ve got the know-how and the track record.”
China has also developed a profound nuclear development capability. Nuclear accounts for nearly 5 per cent of the total national electricity output, according to the China Atomic Energy Authority.
One dealmaker based in Beijing said it was unlikely the Chinese would bid for this kind of work, given the sensitives around Chinese investment in Australian resource projects.
In the last 10 years, more than 34 gigawatts of nuclear power capacity have been brought online in China, bringing the country’s number of operating nuclear reactors to 55.
Another 23 reactors are under construction.https://www.afr.com/world/asia/japanese-eye-investment-in-australian-nuclear-rol... 
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