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MHI Establishes New "Turkey Nuclear IPP Development Department" to Step Up Involvement in Sinop Nuclear Power Plant Project

No.1753
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Tokyo, January 7, 2014 - Effective February 1, Mitsubishi Heavy Industries, Ltd. (MHI) is to establish a new business unit, the "Turkey Nuclear IPP Development Department," to step up its involvement in the Sinop nuclear power plant (NPP) project under way in the Republic of Turkey for independent power producer (IPP). The new unit will be directly under the aegis of the Energy & Environment domain headed by Senior Executive Vice President Atsushi Maekawa. The aim behind its creation is to accelerate formulation of the specific project conditions: for example, the financing framework, power purchase agreement, etc.

The Sinop project calls for the construction and operation of four NPPs in the Sinop Province of Turkey's Black Sea coast. In October 2013 a broad framework of agreement for the project was reached under a "Host Government Agreement" (HGA) type commercial agreement to be concluded between the Government of Turkey and an international consortium including MHI. Going forward, detailed negotiations will now get under way between the two sides, and the role of MHI's new business unit is to support and accelerate those initiatives.

The tasks performed by the Turkey Nuclear IPP Development Department will include implementation of a feasibility study, negotiation of various contract agreements, preparation of a financing scheme, and planning of localization and technology transfer.

Plans for the Sinop project call for the adoption of the "ATMEA1," a state-of-the-art nuclear reactor developed by ATMEA, a joint venture between MHI and France's AREVA. The ATMEA1 is a Generation III+ type pressurized water reactor (PWR) with a capacity in the 1,100 MWe (megawatts electrical) class recognized for its extremely high reliability and safety. In the wake of the Great East Japan Earthquake, the ATMEA1 has been positively evaluated by the French Nuclear Safety Authority (ASN) and the Canadian Nuclear Safety Commission, satisfying latest safety standards.

With establishment of its new business unit, MHI intends to further strengthen its involvement in the Sinop project. By providing the latest and most advanced nuclear technologies while according highest priority to safety, the company aims to make ongoing contributions to Turkey's economic and industrial growth.