A comparison of power generation costs for different fuel sources indicates economic benefits associated with nuclear power. Power generation from oil costs approximately 10 yen/kWh, and the fuel accounts for approximately 60% of that amount. Nuclear power generation costs approximately nine yen/kWh, but the fuel accounts for only about 20% of the cost. Although MOX fuel is presently more costly compared to uranium fuel, its economic impact on generation costs is negligible. Reactors utilizing MOX fuel will eventually represent about one-third of all reactors, with nuclear fuel costs accounting for approximately one-fifth of nuclear generation costs. An existing LWR utilizing MOX fuel is loaded only to one-third of its full core, and MOX fuel procurement costs will represent about one-half of nuclear fuel costs.

GENERATION COSTS PER 1 kWh (examined in 1992)

The recovered plutonium will be fabricated into MOX fuel at MOX fabrication plants in Europe. These plants have already been supplying European utilities with MOX fuel for a number of years. The completed MOX fuel assemblies will then be transported back to the Japanese utility companies' reactors.

Japan has adopted a national policy that embraces three non-nuclear principles: not to possess, not to produce and not to permit the entry of nuclear weapons within its territory. Japan's pursuit of advanced nuclear technology is limited to peaceful purposes by its participation in international regimes, such as the Nuclear Non-Proliferation Treaty, and its willingness to accept rigorous full-scope safeguards inspections by the International Atomic Energy Agency. A fundamental policy of Japan's plutonium program is that it will not possess surplus plutonium in excess of the amount required for running its nuclear facilities. Ultimately, Japan's MOX fuel utilization program contributes to international non-proliferation goals.

The Federation of Electric Power Companies of Japan (1901 L Street, NW, Washington, DC), which has distributed this document, is registered as an agent of the Federation of Electric Power Companies of Japan (Keidanren Building, 9-4, 1-chome, Ohte-machi, Chiyoda-ku, Tokyo 100 Japan) under 22 U.S.C. 612 with the U.S. Department of Justice, Washington, DC. A copy of this document has been filed with the Department of Justice, which maintains copies of all registration statements, but takes no position on the content of materials filed by registrants.