Hitachi eyes small nuclear reactors in Japan as power costs rise

Hitachi is exploring developing small modular reactors in Japan as high energy costs have started shifting public opinion toward nuclear power, according to the company’s energy business head.

Hitachi Energy is developing SMR technology with partners, Chief Executive Officer Andreas Schierenbeck said at the Bloomberg New Economy Forum in New Delhi. Building a new reactor from scratch could take five to 10 years, he said, while playing down concerns that new projects could face opposition rooted in memories of the Fukushima nuclear disaster more than a decade ago.

“The public opinion is changing slightly,” Schierenbeck said in an interview. “High energy prices are changing these positions.”

Japan relies heavily on imported natural gas and coal for electricity and has faced elevated fuel costs from disruptions linked to the Strait of Hormuz and Russia’s invasion of Ukraine. Nuclear power, when operating, is among the country’s lowest-cost sources of electricity.

Small modular reactors, having capacity of 300 megawatts or less, are increasingly seen as a way to decarbonize energy, especially in hard-to-abate industries. Only three such reactors are currently operating across the world — in the U.S., China and Russia — and about 70 projects are at different stages of progress, according to the World Nuclear Association.

The Japanese government has been pushing to restart reactors idled after the Fukushima disaster and build new units to replace aging plants, seeking to reduce dependence on imported fossil fuels. But strict regulation and local opposition have slowed the revival, with only 15 of the country’s 33 operable reactors currently online.