Tag Archives: Hualong One

Who is Relishing Nuclear Power

Daya Bay nuclear power plant in Longgang District, Shenzhen, China

On February 23, 2016, China General Nuclear Power Group, hosted dozens of business executives from Kenya, Russia, Indonesia and elsewhere, as well as diplomats and journalists, at its Daya Bay nuclear-power station to promote the Hualong One for export.  Asked how much of the global market share for new nuclear reactors CGN wants Hualong One to win, Zheng Dongshan, CGN’s deputy general manager in charge of international business, said: “The more the better.”

The move marks a turnaround for China and the nuclear-power industry. For three decades, China served as a big market for nuclear giants including U.S.-based, Japanese-owned Westinghouse Electric Co. and France’s Areva SA. More than 30 reactors have been built across China since the 1990s with reliance on foreign design and technology.

China’s push into nuclear power comes as many nations have been re-examining the risks of nuclear energy and its costs compared with natural gas and other fuels. Two dozen reactors are under construction across China today, representing more than one-third of all reactors being built globally, according to the International Atomic Energy Agency.

The scale and pace of building has given CGN and other Chinese companies opportunities to bulk up on experience in the home market and gain skills in developing reactor parts, technologies and systems. That experience, combined with China’s lower costs of labor and capital, makes the new Chinese reactor potentially attractive to international customers, industry experts said…

[T]he first of Hualong One model reactor won’t enter service in China for several more years.  But the Hualong One reactor marks a big leap by China’s national nuclear champions to move up the export value chain. Jointly designed by CGN and China National Nuclear Corp., the reactor, also known as the HPR1000, has similar specifications to other so-called Generation 3 reactors such as Westinghouse’s AP1000, like advanced so-called passive safety systems.

China Inc’s Nuclear Power Push, Wall Street Journal, Feb. 24, 2016

Nuclear Industry: France, Russia and China

Olkiluoto-3 under construction in 2009. It is scheduled to start electricity production in 2018, a delay of nine years. image from wikipedia

[Regarding the French nuclear company Areva] its newest product, the expensive European Pressurised Reactor (EPR), has encountered more than the teething problems common to all big industrial projects. A plant in Finland is almost ten years behind schedule and almost three times over budget: Areva has had to write off billions as a result….Two reactors in China and the only new-build in France, at Flamanville, are also running late. EDF played an important role in managing the Chinese and French projects.

Besides criticism for slack project management, Areva and EDF (Electricite de France) have been questioned over technical standards. The steel in the main reactor vessel at Flamanville is faulty, the Nuclear Safety Authority said in April 2015. EDF disputes the finding and, with Areva, has started new tests. The news added to growing disenchantment in Britain with an agreement, not yet firm, that expensively entrusts the construction of a power station incorporating two Areva EPRs to a consortium led by EDF.  It seems unlikely that Areva will find many more foreign takers for its existing reactor…

[S]ome of Areva’s rivals are racing ahead. Rosatom, a Russian nuclear firm, has built up a fat order-book. Keen pricing, generous financing and relaxed technology transfer help, though Western sanctions do not. China’s two reactor-builders, CNNC and CGN, are peddling their own new design, Hualong One; in February CNNC signed a preliminary agreement to supply a reactor to Argentina.

Areva has little reason to hope for a surge of new orders at home. France’s 58 reactors are elderly but EDF, which operates them, plans to revamp rather than replace them…A new law set to come into force this summer, pledging somehow to cut France’s dependence on nuclear power from 75% to 50% of its electricity needs by 2025, will make Areva’s prospects even bleaker.

Excerpts from France’s nuclear industry: Arevaderci, Economist, May 23, 2015, at 53.

How China Plans to Export Nuclear Reactors

Qinshan Nuclear Power Plant, located in Zhejiang China. image from wikipedia

China Power Investment Corporation and State Nuclear Power Technology Corp have officially announced their merger, as Beijing moves to consolidate its nuclear power sector, aiming eventually to export reactors.  China Power producer currently controls about a tenth of China’s nuclear power market, while the State Nuclear was formed in 2007 to handle nuclear technology transferred from U.S.-based Westinghouse Electric Co.

The new company, State Power Investment Corporation, is expected to own assets over 700 billion yuan ($112.94 billion) and to post revenue of over 200 billion yuan annually, state news agency Xinhua said, citing Wang Binghua, the chairman and party secretary of State Power Investment Corporation.

China National Nuclear Power Corp (CNNC) said …that the merger to form State Power Investment Corporation will increase competition between China’s three major nuclear corporations in both domestic and international construction of nuclear infrastructure. The other major player in this sector is China General Nuclear Power Group (CGN).China is contemplating a merger between CNNC and CGN which were set up as rivals to compete for projects at home and overseas but, under government prompting, have cooperated on a single reactor brand, Hualong 1, with the intention of eventually marketing it abroad.

Beijing said in January it would aid the overseas expansion of Chinese firms, in particular in the rail and nuclear power sectors, raising hackles with some trading partners who fear it signals another wave of subsidized Chinese exports.

China nuclear power firms merge to fuel global clout, Reuters, May 30, 2015