Several Japanese energy companies and trading houses are investing and have invested earlier in uranium projects in Saskatchewan and are involved in uranium exploration and development in Canada.
Further opportunities for investment may be significantly impacted by the final role nuclear energy plays in Japan’s energy mix. Japan’s Prime Minister has consistently called for the swift restarting of existing nuclear reactors to ease the burden on the Japanese economy and support his growth strategy.
The Nuclear Regulation Authority (NRA, the country’s independent nuclear watchdog established in September 2012 in the wake of the Fukushima accident) is currently assessing the possible restart of some of Japan’s 50 idled nuclear reactors against enhanced nuclear safety standards. In 2015, Japan saw the restart of two reactors in Kyushu. Kyushu Electric Power Co.’s 846-megawatt reactors named Sendai No. 1 and Sendai No. 2 reached full operational capacity in October and November 2015 respectively. However, Sendai No. 1 reactor has been stopped as of Oct. 2016 for its periodical inspection, and Sendai No. 1 reactor is scheduled to conduct its periodical inspection from November 2016.
In addition, in January 2016, Kansai Electric Power Co. restarted its Takahama No. 3 nuclear reactor in Fukui prefecture. The 830-megawatt reactor resumed full commercial operations at the end of February, but it has been stopped again its operation on March 9 due to an injunction of district court order for its safety issues. While, Shikoku Electric Power Co.’s 890-megawatt reactor named Ikata No. 3 restarted its operation on August 12, 2016. Thus, a total of two nuclear reactors restarted operation in Japan as of October 2016.
In June 2015, the government announced a new energy mix plan for Japan, setting its vision of various energy sources contribution, with Japan’s nuclear sector making up 22% of the mix. However, the proportion of nuclear power in Japan’s future energy policy will remain dependent upon the outcome of the review process of the nuclear reactors conducted by the NRA.
Although Canada is home to substantial Japanese investments in uranium mines and continues to offer further investment potential, the Non Resident Ownership Policy (NROP) will continue to act as a deterrent. The Canada-EU Trade Agreement and the impact on projects in which Japanese firms are partnering with Europeans may lead to new opportunities.
