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Japan has greenlit two reactors for the Takahama project, which is owned by Kansai Electric Power Company. That brings the number of approved reactors to four.
Japan has greenlit the opening of two reactors for the Takahama project, which is owned by Kansai Electric Power Company (TSE:9503). That brings the number of approved reactors to four, just after a general election win showed steady support for the pro-nuclear ruling Liberal Democratic Party.
The new reactors will join the Sendai reactors, which were approved in early November after a local vote by the city of Satsumasendai supported their restart. The Sendai reactors aren’t expected to open until early 2015.
Cantor Fitzgerald forecasts that 32 reactors will ultimately be restarted, with nine in 2015, 10 in 2016, 12 in 2017 and one in 2018.
In a note to investors, Rob Chang talked of the reactor restarts being viewed “as a key market catalyst as some investors remain sceptical on whether it will actually occur.”
David Talbot, with Dundee Capital Markets, largely echoed those thoughts.
“Dundee’s opinion is that these two reactors are part of the ‘friendly thirteen’ reactors that will likely gain local approval based on local support — of the 19 or so that are currently under application for start-up,” he said in a comment to investors.
The reactors will require a month-long consultation process, with both the local and municipal governments needing to give their approval.
Uranium is currently trading at $37 a pound.
Securities Disclosure: I, Nick Wells, hold no direct investment in any of the companies mentioned in this article.