Nuclear Revival Hinges on Japanese Samurai Swordsmith

While data shows that the world is on track to build about 240 new nuclear reactors by 2030 -- about ten a year -- an embarrassing bottleneck could bedevil the renaissance.

Why?

Because there’s still only one steel plant in the world that can produce a key part of a nuclear reactor's containment vessel in a single 600-ton piece -- a must-have for staving off radiation leakage.

Problem is, reports Bloomberg in an exclusive story:

Each year the Tokyo-based company can turn out just four of the steel forgings that contain the radioactivity in a nuclear reactor. Even after it doubles capacity in the next two years, there won't be enough production to meet building plans.

Not surprisingly, an industry insider is alarmed:

"Given Japan Steel's limited capacity, the math just doesn't work," said Mycle Schneider, an independent nuclear industry consultant near Paris..."I find it just amazing that so many people jumped on the bandwagon of this renaissance without ever looking at the industrial side of it."

Amazing it is.

Japan Steel Works Ltd. services every single nuclear reactor maker in the world, with a one-nation exception: those in Russia. They build their own heavy steel forgings.

Still, Japan Steel has a king-size job.

And since the Chernobyl meltdown of 1986, the company has done just fine. It has easily kept pace with a tapered world demand of four new reactors per year, while also maintaining a lucrative Samurai sword-making business.

But the world's hunger for nuclear power has exploded. And Japan Steel knows it holds the key to a nuclear revival, however temporarily.

So what will be?

Its competitors are working hard to break the company's monopoly, of course. But they're too new to the game and remain at least five years away from technological expertise. So claims Japan Steel.

In the meantime, utilities in America and everywhere keep banking on its go-to swordsmith. They're lining up right now to land the coveted nuclear gear in time for their reactors to come on line. And some have even made hush-hush $100 million down payments to reserve a slot.

Come June 2008 we'll know how wishful their thinking is. That's when Japan Steel will announce to the world if its expanding operations. The company's biggest concern right now is the US, and its inconsistent (and unpopular) nuclear promises.

Time will tell. In the meantime, the sword of Japan Steel continues to hang over the heads of the world's nuclear power zealots.

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