After losing the High Definition disc format war to Sony, Toshiba went nuclear, literally.
The firm’s share price shot up to 778 Yen today, a five week high, upon news that its nuclear subsidiary Westinghouse was close to winning a lucrative deal to build four power plants in America. It still faces competition by firms like Hitachi, Ariva and General Electric for a series of future contracts.
Up to 30 nuclear plants could be built in the United States over the next 20 years as part of a global trend towards nuclear energy. Britain is following suit with RWE, Eon and EDF trying to purchase a 35% stake in British Energy, which operates eight plants in Britain and is looking to build more.
Nuclear energy lowers carbon emissions, provides energy autonomy and creates jobs in the local economy. However, nuclear waste disposal remains a public concern, as do fears of catastrophe. Toshiba’s plans will build the first new nuclear plants after the Three mile Island Nuclear Generating Station accident in 1979, a partial meltdown which caused no fatalities but severely damaged the facility.
Nuclear expansion is a near inevitability given the difficulties facing oil procurement, from high prices to political hostilities. Public reactions are usually negative and protests will most certainly take place in response to new plants, but America or Brtain will not survive on more wind farms. The government must concentrate on improving public awareness and establishing clear protocols on the containment and disposal of nuclear waste.
For now, this is good news for American energy and Toshiba’s struggling stocks. That won’t change the opinions of die-hard nuclear opposition though, so let the fallout of demonstrations and heated op-ed pieces begin.
