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Technical delays, safety concerns, hamper China’s ambition to sell nuclear reactors to the world

Buy-China-nukes-1RPT-“Made in China” nuclear reactors a tough sell in global market Mar 8, 2015 By Charlie Zhu and David Stanway (Reuters) – As China signs global deals to export its nuclear power technology, it faces a huge obstacle: it still needs to show it can build and safely operate these reactors at home……..

Premier Li Keqiang told an annual parliamentary meeting this week that the China aimed to increase its share of global sales in a range of advanced industries, including implementing major projects in nuclear power. And in a sign of progress on exporting its own nuclear technology, China signed a preliminary agreement last month to sell its flagship Hualong 1 reactor to Argentina.

But despite state media describing the deal as the model’s “maiden voyage”, China has not yet built Hualong 1, raising questions about the country’s capacity to deliver reactors for the global market.

“Our fatal weakness is our management standards are not high enough. There is a big gap with international standards,” said Xu Lianyi, a senior expert at China’s State Nuclear Power Technology Corp (SNPTC), referring to the challenges China faces expanding its nuclear power sector.

SNPTC, which was set up to receive technology transferred from Westinghouse Electric Co., is trying to develop another reactor ultimately targeted at the world market. Although China has operated Western-designed reactors at home for more than 20 years, it will need to convince buyers of the reliability of its own technology, particularly given a chequered reputation on industrial standards and safety in some other areas such as mining.

China’s first Hualong 1 project, in Fujian province, may not be completed until 2020, assuming it breaks ground this year and construction goes smoothly, said Li Ning, dean of the School of Energy Research at Xiamen University…….

Beijing has promised to stick to the highest safety standards, using so-called “third generation” reactors like Hualong 1 and CAP1400, another home-grown model identified for future export. Due to be based on technology transferred from Westinghouse, the launch of CAP1400 will depend on the completion of a pilot Westinghouse third-generation reactor in Zhejiang province, which is facing a three-year delay because of technological problems……

Under a hotly-fought multibillion-dollar nuclear power deal struck with Pittsburgh-based Westinghouse, China secured a significant technology transfer agreement in 2007. China has been absorbing and localising the technology to develop the CAP1400 and says it has full intellectual property rights on the model and Hualong 1.

The Beijing office of Westinghouse, which is now controlled by Japan’s Toshiba Corp, did not immediately respond to requests for comment.

While technology rights may not stoke tensions, Beijing’s pledge to aid the overseas expansion of Chinese firms risks raising the hackles of competitors if sectors like nuclear are deemed unfairly subsidised…….

an official at the China National Nuclear Corporation, which is leading efforts to export Hualong 1 to Argentina, said China still has “huge amounts of work to do” before it can become a nuclear powerhouse, including rolling out Hualong I at home. The official declined to be named because he was not authorised to speak to the media…….http://www.reuters.com/article/2015/03/08/china-nuclear-idUSL4N0WA0T620150308

March 9, 2015 - Posted by | China, marketing

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