UPDATE 1-NRG forms company to develop new nuclear projects

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LOS ANGELES, March 25 (Reuters) - Power producer NRG Energy Inc NRG.N on Tuesday said it formed a company to develop and invest in new nuclear energy projects in North America.

Nuclear Innovation North America LLC will focus on marketing, siting and financing new nuclear projects, including the planned South Texas Project units 3 and 4, NRG said.

Japan's Toshiba Corp 6502.T will be the primary contractor on all of the new company's projects, NRG said in a statement. Toshiba will invest $300 million in the company over the next six years and will receive a 12 percent equity stake.

Half of Toshiba’s investment will support development of the new South Texas Project reactors, and the other half will focus on new projects using the Advanced Boiling Water Reactor technology, NRG said. Toshiba already has built two Advanced Boiling Water Reactor units in Japan.

Last year, NRG’s application to build the first new nuclear reactor in the United States in nearly three decades was accepted by the Nuclear Regulatory Commission.

On Tuesday, NRG said Nuclear Innovation North America anticipated providing a letter of intent to the NRC for at least one new project by the end of 2008. (Reporting by Nichola Groom; editing by Carol Bishopric)