New York: General Electric Co. and Hitachi Ltd have launched a joint nuclear business to capitalize on rising demand for electricity and increasing concerns about carbon dioxide emissions from coal-fired plants.
“We believe nuclear is going to step in and we’re getting ready to execute that plan,” said John Krenicki, president and chief executive of GE Energy at a news conference.
The world’s nuclear power giants are counting on growing demand not only in the US but also in China, where the power market is expected to grow significantly. GE CEO Jeff Immelt said India also can provide a strong nuclear power market.
The GE-Hitachi alliance plans to spend between $350 million (Rs1,260 crore) and $400 million for nuclear plant designs and certification.
The designs, which have been in the works for about 11 years, are expected to be completed by 2010, said Andy White, chief executive of GE Energy Nuclear.
Except for in Japan, the business that will operate internationally is 60% owned by GE and 40% by Hitachi. In Japan, the business will be about 80% owned by Hitachi and approximately 20% by GE.
“We are coming together at the right time, at the right place and in the right circumstances,” said Masaharu Hanyu, president of Hitachi-GE Nuclear Energy.