Japanese Metallurgists Support Nuclear Expansion

Nuclear power, which accounts for nearly a third of Japan's electricity production, has been identified by Japanese Prime Minister Shinzo Abe as an important source of "base capacity." Even after public outcry over the Fukushima accident, Abe insists that nuclear power will continue to play an important role in Japan's energy balance.

Since after the accident, Japan switched to expensive imported energy resources, in particular, to liquefied natural gas, the country has been experiencing a trade deficit for 28 consecutive months. With these numbers in mind, Japan's largest companies believe that nuclear power is critical to the metals, chemical and other energy-intensive industries.



Nippon Steel & Sumitomo Metal Corp. and Kobe Steel Ltd, a major steel company, is one of the signatories to a petition from 11 industry groups to the government to address the energy challenge. So far, none of the reactors will return to service, although work is underway to ensure safety at 20 reactors with a view to reloading.

Japan will restart 25 of its 48 reactors by 2018, and until then, the energy shortfall is projected to be filled mainly with liquefied natural gas, said Yoko Nobuoka, an analyst at BNEF in Tokyo. A poll conducted last month shows that 40 percent of respondents oppose the resumption of the nuclear program, and more than 24 percent say they support it.