Business

Nuclear power firms move into top gear

By Wan Zhihong and Liu Yiyu (China Daily)
Updated: 2010-08-04 14:07

A third-generation nuclear reactor built by French company Areva in Taishan, Guangdong province. Provided to China Daily

Huge growth potential in China beckons global, domestic biggies

BEIJING - Global equipment makers are rushing to corner a slice of the fast growing nuclear power sector in China and the resultant opportunities in what analysts estimate to be a market in excess of 1 trillion yuan ($148 billion).

Domestic nuclear companies are also in the fray and are competing with global players to take advantage of the huge opportunities in China.

Dongfang Electric Corp, one of the three largest power equipment makers in China, said over one-fourth of its revenue now comes from the nuclear power sector.

"The past two years has been a boom time for China's nuclear power sector. We bagged a lot of orders and have started deliveries," Tang Hongju, head of Dongfang's nuclear department, told China Daily.

But Tang said the pace of new orders has diminished in the past six months compared with the same period in 2009 as the government has not approved too many new projects.

Power systems provider Rolls Royce expects nuclear power to be a major growth engine for its energy business in China. The company, which is better known in for its aerospace business, has supplied instrumentation and control systems for the Qinshan nuclear power plant in Zhejiang province and the Ling Ao nuclear power plant in Guangdong province.

It is also exploring further cooperation with Chinese partners, according to its Chief Executive John Rose. He said Rolls Royce products help ensure safety and increase the efficiency, reliability and lifespan of nuclear power plants.

French nuclear power group Areva, which has taken part in several nuclear power projects in China, said while the rapidly growing sector does not benefit the company itself, there are gains for some of its foreign sub-suppliers.

Areva has participated in six of the 11 nuclear power reactors currently in operation in China. Nearly 20 of the 24 reactors currently under construction in China use Areva technology, while the French company is directly participating in four of the 20 reactors.

The company is also looking for possible opportunities in areas like joint uranium exploration and mining, conversion, fuel fabrication and waste management in China.

Nuclear power equipment providers are witnessing "unprecedented opportunities" in China and hence should take steps to meet the higher technology and environmental requirements, said Zhou Xiujie, a nuclear power expert.

Some analysts, however, feel that domestic equipment makers stand to gain more, as the government is planning to increase the ratio of indigenous development in nuclear power equipment manufacturing.

To increase local production in nuclear power equipment, output should be regarded as a national strategy, National Energy Administration head Zhang Guobao said recently.

China Daily