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January 20, 2014

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Tepco may spin off Fukushima clean-up

Spinning off the clean-up project at Japan’s wrecked Fukushima nuclear plant from the rest of operator Tokyo Electric Power’s business could be an option in the future if the decommissioning runs smoothly, the company’s president said.

Nearly three years after a devastating earthquake and tsunami hit the plant, Tokyo Electric (Tepco) is still struggling to contain radioactive water at the site and turn around its battered finances.

“Paying compensation (to evacuees), decontamination, and the work at the Fukushima plant; there is a lot of work to be done ... We have to continue doing this, while maintaining the workers’ safety, their sense of responsibility, duty and keeping up their morale,” said Naomi Hirose in an interview with Reuters on Saturday.

Hirose said if working conditions improve significantly at Fukushima and worker shortages are no longer a problem, Tepco could consider hiving off the Fukushima decommissioning from the rest of the business, a suggestion that had been made by policymakers since the disaster. But for now, Hirose said he was opposed to such a scheme.

Japan last week approved a plan by Tepco, Asia’s largest utility, which aims to make savings in costs of US$46 billion over 10 years, upgrade fossil fuel power plants and join alliances with other firms to procure liquefied natural gas more cheaply.

But central to Tepco’s revival plan is the restart of the reactors at Kashiwazaki Kariwa, the world’s biggest nuclear power plant, as early as July, which faces staunch opposition from a local governor who has repeatedly called for the company’s liquidation.

Governor Hirohiko Izumida of Niigata, home to the Kashiwazaki plant some 300 kilometers northwest of Tokyo, said last week Tepco’s plan does not hold shareholders and banks accountable. He has also said that Tepco must not be allowed to consider restarting its other nuclear facilities before a comprehensive review of the Fukushima disaster.

 




 

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