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14-March-2007 -- Mitsubishi Heavy Industries Ltd. (MHI) was selected for a $5 billion contract to supply two advanced-pressurized water reactors to TXU Corp. The deal was reported to be worth up to $5.2 billion.
The reactors, each with 1,700 MW of capacity, will be installed at TXU's nuclear-power facility near Dallas.
The deal marks the first time the Japanese company has won a contract to export Japanese-built reactors overseas. MHI is planning to construct the US-APWR in cooperation with U.S.-based Washington Group International Inc.
The deal comes after the Dallas-based TXU agreed to be taken over last month in a $45 billion buyout by an investor group led by Kohlberg Kravis Roberts, Texas Pacific Group and Goldman Sachs, the largest leveraged corporate buyout in history.
Shortly after the buyout was announced, TXU said it would eliminate eight of 11 planned coal-fire power plants to be built to Texas by 2010.
TXU will reportedly apply for a license to build and operate the reactors this autumn. Approval for the project is expected to be given around 2011 and the reactors are expected to come online as early as 2015.
Mitsubishi initially developed the advanced reactors for the Japanese domestic market but later modified them to comply with U.S. safety standards.
TXU reportedly plans to build three more reactors by 2020 in addition to the two to be built by Mitsubishi Heavy.
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