MHI Expected To Drop Out Of Turkish NPP Project

Soaring costs have given Japanese builder Mitsubishi Heavy Industries (MHI) second thoughts about leading construction of a four-unit 4500MWe nuclear power plant in the Black Sea region of Turkey in the Sinop province.

Misubishi Heavy IndustriesMHI is reportedly 51 percent owner of the consortium, along with Itochu and Engie. The smaller half, 49 percent, is owned by a variety of interests, including the Turkish Electricity Generation Corporation.

Japanese news service Nikkei reported Wednesday that post-Fukushima Daiichi accident safety features have helped push costs to more than $44 billion. In addition, the value of the Turkish Lira has been in decline, adding to the price of the project. Delays have also added to costs.

A contributing factor is the lack of agreement with the Turkish government on the price for the electricity generated by the power plant. MHI submitted revised cost estimates in July, but there is still no financing agreement in place, according to Nikkei.

Moreover, according to the International Energy Agency, investment around the globe on nuclear power dropped 70 percent in 2017, largely due to increased costs associated with post-Fukushima Daiichi safety requirements.

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