Thursday, March 10, 2011

GE (GE), Hitachi (6501.T) Win Nuclear Reactor Design Approval in U.S.

The joint venture between General Electric Co (NYSE:GE) and Japan's Hitachi Ltd (6501.T), called GE Hitachi Nuclear Energy, has won design approval from the U.S. Nuclear Regulatory Commission.

Later in the year that will lead the way to final certification for the next-generation reactor.

What this means is all technical issues have been taken care of, and countries recognizing U.S. standards can now be offered the reactors.

Detroit Edison, a subsidiary of DTE Energy Co (NYSE:DTE), has already applied for a license in the U.S. to use the reactor. It would be developed about 35 miles south of Detroit.

GE and Hitachi have joint ventures in the United States and Japan, created to meet the growing global demand for nuclear power.

Hitachi owns 80 percent of the Japan venture and GE 60 percent of the U.S. venture.

Weak economies have held back nuclear for the last several years, but that's expected to change over the next three to five years.

No comments: