Japan’s Toshiba Corp. says it is withdrawing from a project to build two advanced boiling water reactors (ABWRs) at the existing South Texas Project nuclear site in the U.S.
In 2007, independent power producer NRG Energy filed an application with the U.S. Nuclear Regulatory Commission to build two new units at South Texas. The site already hosts two 1,280 megawatt pressurized water reactors.
Toshiba America Nuclear Energy Corp. signed on in March 2008 to build the third and fourth reactors at the site.
A statement in late May 2018 says that the project failed to find investors and is no longer financially viable. Toshiba blamed low electricity prices and regulations put in place after the March 2011 accident at the Fukushima nuclear power plant.
In 2011 NRG abandoned and wrote off its investment in the project.
Toshiba says that it has claims of around $640 million and an equity interest of nearly $150 million in the scrapped venture. It says it already has accounted for the expenses in 2017 and expects a minimal impact on operations in 2018.