China Guangdong Nuclear Power Corp (CGNPC) yesterday signed an
8-billion-euro agreement with the French nuclear company Areva for
the supply of two nuclear reactors, a record agreement for the
Under the agreement signed during the first official visit of
French President Nicolas Sarkozy to China, Areva will supply two
new generation EPR (European Pressurized Reactor) for the project
in Taishan in South China's Guangdong Province.
CGNPC also signed an agreement to buy the 35 percent of the
production of UraMin, a uranium mining company under Areva, which
has mining facilities in South Africa, Namibia, and the Republic of
Construction of the two reactors, with the capacity of 1700
megawatts (MW) each, could begin during the fall of 2009.
They are expected to begin service in 2014, sources close to the
deal told China Daily.
"The deal is the largest international commercial contract ever
won by the French nuclear industry," said Anne Lauvergeon, CEO of
Areva, adding that a new company would be formed to operate the two
The two EPRs will be the third and the fourth new generation
reactors for Areva in the world.
China will be the third country in the world to use this
reactor, according to the company.
Electricite de France (EDF), Europe's largest power generator
will own about 30 percent of the newly established company, which
will own the two EPRS at Taishan, the company said yesterday.
"We have been partners with CGNPC for 20 years. This agreement
is a major step for EDF which, for the first time, will become both
investor and operator of nuclear reactors in China," Pierre
Gadonneix, chairman and CEO of EDF said yesterday.
Areva also signed an agreement with China's largest nuclear
company China National Nuclear Corp for the feasibility studies
related to the construction of a spent fuel reprocessing-recycling
plant in China.
Both parties also agreed to build a joint venture in the area of
The world's fastest growing major economy in July finalized a
contract with a consortium, led by the US-based Westinghouse
Electric Co, to build four nuclear power reactors in the eastern
part of the country.
Neither party revealed the amount involved in the contract but
earlier media reports had estimated it to be $8 billion.
Westinghouse, which was bought by Japan's Toshiba for $4.16
billion in last October, outbid its competitor Areva for the four
reactors after two years of negotiations.
The 2006 annual report of the State Electricity Regulatory
Commission showed that at the end of last year, nuclear power
accounted for 1.1 percent in the total installed power
China plans to increase nuclear power capacity to 40 gigawatts
by 2020, accounting for 4 percent of the total generating
The nation this May set up State Nuclear Power Technology Corp
Ltd, which will mainly be in charge of using advanced foreign
technology and domestic development.
(China Daily November 27, 2007)