Japanese conglomerate Toshiba Corp, parent company to nuclear power giant Westinghouse Electric, is seeking assistance from financial firms to help fund a three-reactor project slated for a site close to the existing Sellafield nuclear fuel reprocessing facility in West Cumbria, England.
Toshiba is the majority stakeholder in NuGen UK, a joint venture formed with French company Engie. Toshiba holds 60 percent of the venture, which puts its financial responsibilities at more than $2 billion.
Two critical factors are creating financial hardships on Toshiba. The first is a $1.3 billion accounting scandal that has been a major contributor to a 40 percent drop in the company's stock prices since April, when the scandal became public.
Whether or not the stock skid is over is uncertain. On Monday, securities regulators in Japan fined the company $60.5 million for overstating profits, a record fine that may help put closure on the controversy. However, shareholder lawsuits are likely to keep the scandal newsworthy at least in the near term.
Secondly, it is reported that the cost of the project has doubled from its original estimates, owing to more strident safety standards and increasing costs for labor and materials.
Early estimates, now two years out of date, pegged the project at $12.4 billion. Finances are not expected to be finalized until 2018.
The plans call for three Westinghouse AP1000 reactors with the first to begin operations in 2024.