Chinese firms join forces to market Hualong One abroad

Two Chinese nuclear power companies have agreed to create a joint venture to promote China's "third-generation" nuclear reactor design, Hualong One, in overseas markets. China Guangdong Nuclear Power Group (CGN) and China National Nuclear Corporation (CNNC) announced the plan to establish Hualong International Nuclear Power Technology Co in separate statements yesterday.

Signing of the agreement in Beijing was witnessed by Nur Bekri, director of the National Energy Administration and deputy party secretary of the National Development and Reform Commission.

The new joint venture company has a registered capital of 500 million yuan ($77 million), with CGN and CNNC each holding a 50% stake.

The two companies began research and development work on Hualong One in 2013 and in May this year construction of a pilot project using the reactor design started in Fuqing, in Fujian Province. The agreement to form the Hualong company followed the two companies' signing in August last year of a "technology integration agreement", they said.

The Hualong company will "actively implement" China's nuclear power development strategy, which is "committed to the continued integration and development of Hualong One as an independent third-generation nuclear power technology, with the unified management of the Hualong brand, intellectual property and other related assets at home and abroad", they said. The company will promote Hualong One as the Chinese nuclear power industry's "flagship brand", they added.

China's State Council on 16 December approved the construction of two Hualong One reactors as units 3 and 4 of the Fangchenggang plant in Guangxi province. These units are owned 61% by CGN and 39% by Guangxi Investment Group. First concrete was poured for unit 3 on 24 December.

A total of six reactors are planned to operate at the Fangchenggang site. Units 1 and 2 are both CPR-1000s, units 3 and 4 are planned to be based on Hualong One reactors, and units 5 and 6 are to be AP1000s. Fangchenggang 3 and 4 will be the reference plant for the proposed Bradwell B plant in the UK.