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China Civilian Nuclear Industry, Technology, Exports and Supply Chain: News & Discussions

There's a saying in the nation's atomic industry that one reactor sold abroad equals 1 million cars.

China's goal of exporting nuclear reactors seems within reach, as domestic makers of these power stations are establishing a complete industry chain, company officials and engineers said.

Involvement by Chinese companies in foreign projects has been expanding but mostly in the form of project financing rather than contracts to design, build and operate nuclear plants.

Even a recent foray into Argentina, related to construction of a pressurized heavy-water reactor at the Atucha plant, is limited to providing equipment and services under long-term financing. An agreement was signed between China National Nuclear Corp and Nucleoelectrica Argentina SA during President Xi Jinping's state visit in July.

But China's nuclear companies have global ambitions for their proprietary technology.

"It seems that CNNC hopes to take advantage of this deal to open up other nuclear opportunities with China's domestic technology in Argentina," said Zhang Luqing, a nuclear expert and power project manager with almost a half-century of experience.

He said that China has the technology ready to export, and it can benefit from doing so in many ways. Exporting plants will help domestic manufacturers improve their technology levels and recover the huge costs of research and development.

The United Kingdom will be the likeliest place to locate a nuclear project entirely owned by Chinese companies. A bilateral agreement allows companies from China to build, own and operate nuclear power plants in the UK.

The British government said it is committed to the development of nuclear energy to provide a sustainable, low-carbon electricity supply, with a target of adding 16 gigawatts of installed nuclear capacity by 2030. It has confirmed a list of eight new sites deemed suitable for nuclear power stations by 2025.

Yang Maochun, project manager in charge of the UK market at China General Nuclear Power Corp, said the UK offers a substantial market opportunity.

Yang said the company will cooperate with French power giant Electricite de France SA to invest in the UK project, which is the Hinkley Point C in Somerset, southwest England.

CGN has had a long-standing partnership with EDF, which helped develop two Areva-designed European pressurized reactors in Taishan, Guangdong province, where CGN is based.

CNNC, a bigger player, will also be bidding for construction of nuclear reactors in the UK.

Last year, the UK government gave approval for CGN and CNNC to invest in the $2.6 billion Hinkley Point C project for a combined stake of 30 to 40 percent. The project involves a two-reactor, 3.2-GW station led by EDF.

An industry insider at a UK-based nuclear company said that because the UK is a developed market, winning a bid to build a nuclear station will give the two Chinese companies global recognition.

But he warned that hurdles remain, because the UK has very strict nuclear regulations and there are still concerns about whether Chinese companies should be allowed to own majority stakes in the new plants.

"The lack of international business experience and a long-term market strategy will constrain the development of Chinese companies making inroads into these countries," he said. But he added that if the two companies could form an alliance or set up a joint venture in the UK, they would have better chances to win bids.

China has the world's largest number of reactors under construction, and it plans to translate that capacity into nuclear exports. Of 72 reactors under construction, 28 are in China. Russia, second on the list, is building 10 reactors.

The Chinese government suspended all nuclear projects following Japan's Fukushima nuclear accident in 2011, but it now plans to approve more plants. The central government has already approved new reactors in coastal areas. There will not be any work on projects in inland areas until 2015.

Experts are confident in the prospects for technology exports, because China's newest reactors have higher safety levels and lower costs.

Zhang Luqing said the ACP1000, a third-generation reactor developed independently by CNNC, is ready for export. The ACP1000 reactor is equipped with safety mechanisms to withstand an accident similar to the earthquake and tsunami in Japan in 2011, and it also features proprietary fuel technology, he said.

"The ACP1000 is the only one we have with fully independent technology rights, which will lower the costs for reactors," he said.

Other Chinese companies have taken different technical routes.

State Nuclear Power Technology Co has developed the CAP1400, which was based on Westinghouse Co's AP1000.

Wang Binghua, president of the company, said that China will have full design rights for the CAP1400, which is 65 percent complete.

"About 80 percent of the components for the first two CAP1400 units will be made in China," he said, adding that the country is capable of making six to eight CAP1400 or AP1000 nuclear reactors each year.

Third-generation reactors rely on passive safety features, which do not require any action by human operators.

Chai Guohan, chief engineer in the nuclear and radiation safety center of the Ministry of Environmental Protection, said that no matter which technical route a Chinese company takes, it must commercialize its technology, or exports are just "empty talk".

"It will take time for Chinese companies to establish a global reputation, but if they speed up the commercialization phase of their nuclear plants, more technology will be exported to the Western markets," he said.

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China will invest $2 billion in the construction of Argentina's fourth nuclear power station, another gesture of support by China for the Latin American country mired in a continuing debt crisis.

"The cooperation is important for Argentina, especially in this moment that it is facing difficulties in financing itself abroad," said Roberto Luis Troster, an Argentine professor and also the former chief economist for the Brazilian Banks Federation. "Argentina is facing a slowdown this year, and might enter a recession. China's cooperation will surely mitigate its effects."

According to agreements signed on Sept 4 in Beijing, China National Nuclear Corp (CNNC) will provide assistance that includes technology, service and machinery, while Nucleoeléctrica Argentina SA (NASA), a state-owned company, will be in charge of building and operating the 800-megawatt power station named Atucha 3.

Argentina owns three nuclear power plants, with the first one - Atuchal1 - built in 1974 just northwest of the capital city of Buenos Aires. The new power plant will be based in the same area.

Brazil and Argentina are the only Latin American countries that own nuclear power plants. Argentina encouraged the development of nuclear power for civilian use and established the national Atomic Energy Commission (CNEA) in 1950.

German company Kraftwerk Union (KWU)-Siemens Power Generation helped in the construction of Atucha 1 and Atucha II, with nuclear power plant, Embalse, built by Canada Ltd (AECL) and Italimpanti from Italy.

The three plants provide 10 percent of the country's total electricity and the government hopes nuclear power can be a part of "an expansion in generating capacity to meet rising demand", according to Argentinian Nuclear Energy.

The government is negotiating with China, Russian, the United States, France and South Korea for the construction of a fifth nuclear power plant.

China and Argentina signed a series of agreements during Chinese President Xi Jingping's state visit to Argentina, including two for major investments in infrastructure construction, which are expected to increase the employment rate and stimulate the economy.

"The first commercial agreement between Argentina and China was in 1972, but only recently did the partnership between the two countries intensify, with benefit to both sides, creating positive synergies," said Troster.

China's investment in Argentina's nuclear power project is one of a series of international agreements for China's nuclear sector.

Karachi Nuclear Power Complex was officially initiated last November and is China's largest energy investment in Pakistan. CNNC will be in charge of the construction of two reactors and the project is scheduled to provide 2,200 watts of electricity when completed in 2019.

During Chinese Premier Li Keqiang's meeting with British Prime Minister David Cameron last December in Beijing, the two countries agreed to strengthen cooperation on nuclear power. Cameron welcomed Chinese companies to invest in Britain's nuclear power projects.

French Prime Minister Jean-Marc Ayrault also agreed to cooperate with China to "jointly develop the nuclear power market of a third country" during his visit last year. "China's nuclear power's 'going global' will greatly promote the 'going global' of the advanced energy technology and equipment as a whole," said Ye Qizhen, a member of the Chinese Academy of Engineering and also an expert on nuclear reactors and nuclear-power engineering.
 
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Argentina had some tough years between 1998-2002. The economy shrank by 20 percent from 1998 to 2002.[2][6] In terms of income, over 50 percent of Argentines were poor and 25 percent, indigent; seven out of ten Argentine children were poor at the depth of the crisis in 2002.[1][6]

They borrowed from IMF in the past but with interference to the countries it lend to. In a speech before the United Nations General Assembly on 21 September 2004, President Kirchner said that "An urgent, tough, and structural redesign of the International Monetary Fund is needed, to prevent crises and help in [providing] solutions". Implicitly referencing the fact that the intent of the original Bretton Woods system was to encourage economic development, Kirchner warned that the IMF today must "change that direction, which took it from being a lender for development to a creditor demanding privileges".

The IMF is not really there to help, but rather to control a country's economic policies. Hopefully, the BRICS bank can lend them some money without demanding privileges like IMF and come out with a win-win for both parties
 
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New nuclear projects expecting approval by year end in China

Staff Reporter
2014-11-14
11:00 (GMT+8)

The National Energy Administration's (NEA's) recent approval of a nuclear power project's adoption of Chinese-developed technology in Fujian province has given rise to hopes about China reinitiating new nuclear plant projects by the year's end, reports the Securities Daily.

Chinese energy regulators approved a proposal to modify a project involving two new reactors in Fujian's Fuqing and adopting the Hualong One technology, one of the third-generation nuclear technologies developed in China.

In its announcement, the NEA has also directed the Fuqing project to use domestic products in at least 85% of the key equipment and components.

The approval marks the government's recognition of the Hualong One technology jointly developed by China National Nuclear and China General Nuclear Power, and signals the possibility of regulatory approval of new nuclear power projects, said Lu Juan, an analyst at Guotai Junan Securities.

The third phase of the Fuqing project, which includes the two new reactors, along with two other reactors in the second phase of the Fanggangcheng project in Guangxi, are expected to become the first two that will adopt the Hualong One technology and will get approval to break ground by the end of this year, Lu pointed out.

Meanwhile, the newspaper said Chinese leaders have begun accepting the industry's consensus to rapidly develop nuclear power, as the negative impact of Japan's nuclear crisis in 2011 wanes.

The National Development and Reform Commission recently approved the application to break ground of four nuclear plants, including three new plants, and an expansion of an existing plant in Dalian in Liaoning province, which is scheduled to begin operations around 2017.

Under the NEA's 12th Five-Year Plan, China will invest 1.2 trillion yuan (US$196 billion) in 101 new reactors between 2015 and 2030, which Lu described as an indication of the country's nuclear development entering a rapid growth phase.

The certification of Hualong One nuclear technology also hints that deals involving the export of eight reactors to Pakistan and two others to Romania will soon be carried out, spelling bright prospects for China's nuclear industries, Lu added.
 
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ACP1000 clears first hurdle on path to global market, winning IAEA approval

China's nuclear technology is fully equipped to compete against the West in bidding for international projects, a senior official at the China National Nuclear Corp said on Friday.

"Exporting nuclear technology is of strategic importance to China, and it creates more demand for China's own domestic nuclear supply chain. We look forward to exporting Chinese nuclear technology globally in the near future," said Li Xiaoming, assistant president of CNNC.

Li was speaking in Vienna, a day after CNNC's ACP1000 nuclear power reactor passed the Generic Reactor Safety Review by the International Atomic Energy Agency, a process that took a year to complete.

The ACP1000 forms the core technology of the Hualong One, a third-generation nuclear reactor design jointly developed by the CNNC and the China General Nuclear Power Group. Hualong One was created earlier this year within a government initiative to form a coherent nuclear technology policy in China.

China currently has two nuclear sites planned for Hualong One technology: Fuqing in Fujian province and Fangchenggang in Guangxi Zhuang autonomous region.

The development of third-generation nuclear technology came about after the Fukushima nuclear power station disaster in Japan, and has been designed to ensure better safety. China, the United States, France and Russia all have their own third-generation nuclear technology.

Li said that the IAEA's review of the ACP1000's technology met three main conclusions: That it is recognized as fully compliant with all the safety standards set by the IAEA, and is suitable to be sold outside China; that its technology is evolutionary, meaning it is constantly evolving by adding the latest and best technology to existing technology; and that it combines passive and active technology, ensuring better safety.

"If Chinese nuclear firms can successfully bid for international projects, it is a good demonstration of our own nuclear strengths and also helps with the domestic economy," Li said. "About 50 percent of the revenue from a nuclear project comes from equipment sales, and most of the equipment used in this case is Chinese technology made in China."

He said CNNC is currently exploring various opportunities to build nuclear plants overseas, including in the United Kingdom and Argentina.

In the UK, CNNC and CGN are both investing in Hinkley Point C, a nuclear plant project led by France's EDF Energy.

As a part of the agreement, EDF will subsequently support CNNC and CGN to invest in another UK-based nuclear power plant that uses Chinese technology.

Li said the international use of Chinese nuclear technology was still dependant on satisfying country-specific rules and requirements, although the globally recognized IAEA standard will make this process easier. For example, in the UK it still needs to pass the Generic Design Assessment designed by UK regulators.

Li said another important factor in ensuring the successful internationalization of Chinese nuclear technology would be public relations, to ensure its safety and quality messages are fully understood by the particular governments and communities involved.

Pan Ziqiang, a nuclear expert and an academician, said that passing the review means the Hualong One has been internationally recognized as having achieved the world's highest nuclear safety standards.

"The move is a milestone, and clearly it will help Chinese nuclear power companies to export their own nuclear technology, secured under independent intellectual property rights," he said.

However, he said passing the review is only a preliminary stage, and it is likely to take at least another five years for the construction of the first nuclear plant, referring to the reactors in Fuqing.

"Various countries have diffident nuclear plant regulation, supervision and control, so we still need to get approval from other nuclear export markets," Pan said.
 
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China's nuclear power 'going global'
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Following high-speed railway, nuclear power has become a new international calling card for China's equipment manufacturing industry.

China and Argentina have recently signed an agreement to build a pressurized water reactor (PWR) nuclear power plant in Argentina, marking the first strike for the "going global" strategy of China's independent third-generation nuclear power technology.

Experts believe that China's equipment manufacturing industry, represented by high-speed rail and nuclear power, will become a new engine for the country's economic growth shift from low-end to high-end in the future.

China's third-generation nuclear power gets first foreign order


China's domestic nuclear power technology is now mature, and the country is setting its sights on overseas markets.

The recent deal with Argentina has opened the door to overseas markets. After decades of development, China's nuclear power has accumulated prominent market acceptance and operational experience. "Going global" has become a national strategy.

According to the International Atomic Energy Agency, 60 to 70 nuclear power plants of 1 million kilowatts will be built in the world in the next 10 years - excluding China - which means that overseas nuclear power contracts will reach a market value of one trillion yuan.

Song Qinghui, an economist, remarks that the push to globalize China's nuclear technology and the development of nuclear power projects are of great significance for improving the country's high-end manufacturing industry and guiding the development of relevant industries.

High-speed rail and nuclear power jointly create a new calling card


China's railway industry, with high-speed rail in the vanguard, has penetrated more than 80 countries and regions. In 2014 locomotive exports reached four billion US dollars, accounting for 10 percent of global market share.

"China is transforming from the 'world factory' to an exporter of capital." In the next 10 years, China's overseas investment will reach 1.25 trillion US dollars. The "One Belt One Road" plan and the Asian Infrastructure Investment Bank strategy will not only help Chinese companies promote their capability to undertake national industrial upgrading and independent development, but also help the world to build a more open and robust economy.

Policies accelerate high-end exports

A series of incentives and supporting policies have accelerated the pace of Chinese equipment's "going global", which is beneficial for China's current economic development. It will also promote industrial transformation and upgrading, and help China's economy develop from low-end to high-end.

"Domestic demand for products including iron and steel, cement, and wind power is slowing down. There is a new round of overcapacity," says Song Qinghui. He believes that the expansion of nuclear power and high-speed rail is an essential measure to respond to the economic slowdown.

"In the future, China will first explore the international market for major items like railway and nuclear power," says Wang Xiaotao, deputy head of the NDRC (China's National Development and Reform Commission).
 
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