China, France sign 8-bln-Euro nuclear energy deal

Source: Xinhuanet | 11-27-2007 08:15

BEIJING, Nov. 26 (Xinhua)-- China Guangdong Nuclear Power Group(CGNPG) and Areva of France signed an eight-billion-Euro (11.87 billion U.S. dollars) civil nuclear energy cooperation deal on Monday, according to which the French company will help build two reactors in Taishan City in southern Guangdong Province.

Qian Zhimin, Chairman of the CGNPG, and Anne Lauvergeon, Chairman and CEO of Areva, signed the milestone contract at the Great Hall of the People in Beijing during the signing ceremony for various commercial contracts between the two countries, in the presence of Chinese President Hu Jintao and visiting French President Nicolas Sarkozy.

"This is the largest commercial contract signed in the French nuclear energy industry history and opened a new chapter of nuclear cooperation between the two countries," said Anne Lauvergeon.

Areva will cooperate with the CGNPG to establish two European pressurized-water reactors (EPRs) in Taishan. Areva, the world's largest nuclear engineering firm, will also provide all the needed fuel and technology support, according to the signed deal dubbed "Taishan EPR 1&2 Contract".

The two sides also planned to set up a joint venture soon, in an effort to conduct research and development of nuclear reactors engineering technologies, said the contract.

The two sides signed another agreement on Monday according to which CGNPG would purchase 35 percent of the output of uranium ore manufactured by UraMin, a subsidiary of Areva.

CGNPG is a leading nuclear energy enterprise in China and currently owns Guangdong Daya Bay Nuclear Power Station and Ling'ao Nuclear Power Station Phase I with nearly 4,000 Megawatts of installed generating capacity.

Also on Monday, CGNPG and Electricite de France agreed to cooperate in the construction and operation of the Phase I project of the Taishan nuclear power station program.

Chinese President Hu Jintao proposed further cooperation with France on nuclear energy, aviation and aerospace as part of a plan for the development of relations between the two countries when he had talks here on Monday morning with French President Nicolas Sarkozy.

Facing energy shortages from its fast economic growth, China decided to develop more nuclear power in future years. By 2020, China will have an installed nuclear power capacity of 40 million kilowatts, accounting for 4 percent of the country's total installed generating capacity.

Currently, nuclear power capacity on the Chinese mainland stood at 16.97 million kilowatts, with 11 nuclear generating units in operation involving a combined capacity of 9.07 million kilowatts and another eight units under construction.

Among them, three use domestic technologies, two are equipped with Russian technology and four with French technologies, and twoare Canadian designed. All the 11 reactors employ second-generation nuclear power technologies.

China reached an agreement in July with the U.S.-based Westinghouse Electric Co. to build four nuclear power plants in China and transfer core technologies for third-generation AP1000 reactors.

China's first third-generation pressurized-water reactors adopting Westinghouse technology, built in Sanmen of eastern China's Zhejiang Province, will be put into commercial operation at the end of 2013.

China is the world's second-largest power consumer after the United States, with about 80 percent of the total generating capacity coming from coal-fired generators.

Experts said the development of clean nuclear power would relieve the nation's reliance on coal.

Editor:Zhang Ning