nuclear-news

China’s aggressive nuclear marketing is causing it some problems

Ambitious Nuclear Expansion Is Causing Problems For China. Oil Price, By Irina Slav – Aug 29, 2016, China General Nuclear Power Corp. has been indicted by the FBI on allegations that it has been trying to illegally acquire nuclear technology secrets from its U.S. consultants. According to the indictment, the country has been working with said consultants for years – and has been pressuring them into handing over sensitive trade information – pursuing Beijing’s international nuclear expansion ambitions.

Last month, Britain’s PM Theresa May postponed the go-ahead for the construction of the country’s biggest NPP in several decades, Hinckley Point, citing concerns about Chinese interference in British national security. The Chinese company behind Hinckley Point is China General Nuclear Power Corp.

These two cases have highlighted China’s growing ambitions in the nuclear field – not just domestic but international. They have also highlighted the inherent suspicion that Western governments feel towards China. In the case with the U.S. consultants, it’s very likely that the charges are legitimate, despite CGNP issuing a statement that said it “always sticks to the principle of following laws and regulations.”……

China has very aggressive international nuclear ambitions. The country’s state-owned nuclear power companies have been working with international leaders such as France’s Areva and EDF, and Westinghouse, on developing its own nuclear reactor that Beijing hopes to start exporting on a large scale.

The reactor in question is Hualong One, and it has been exported to two countries to date, Pakistan and Argentina. Both deals include financing for the construction of the power plants from Chinese sources, which is the model China used to get into road construction and other infrastructure in Africa an the Middle East, AP notes.

CGNP’s investment in the $24-billion Hinckley Point is yet another aspect of China’s international nuclear ambitions. Experts, however, are wary of the success of this ambition. Many warn that China has yet to win the trust of its potential clients – even though no Chinese nuclear plant has so far made headlines by causing a disaster, general sentiment towards nuclear energy is suspicious, and as a result, safety standards are very stringent. In addition to this stringency, they also vary from country to country, so Chinese reactor builders will have to be very flexible in their offer if they want to convince their potential clients to become actual ones.

What’s more, this market is extremely competitive, and there are clear global leaders, such as the aforementioned French and U.S. companies. These companies have the experience, the track record, and the reputation that ensure their place at the top. China lacks all of these, so pushing into the international nuclear reactor market may prove difficult.

Still, it has enough to do at home, with 20 reactors in construction and more planned in order to raise the country’s nuclear generation capacity to at least 58 GWe over the next five to six years, and further to 150 GWe by 2030……http://oilprice.com/Energy/Energy-General/Ambitious-Nuclear-Expansion-Is-Causing-Problems-For-China.html

August 31, 2016 Posted by Christina Macpherson | China, marketing | Leave a comment

China seriously overestimating the global market for their nuclear reactors

Beijing is “seriously underestimating” how hard global sales will be, said Schneider. He said obstacles include strict quality controls, regulations that differ from country to country and competition from the falling cost of wind and solar.

“There is simply no market out there,” said Schneider.

Overseas, China’s nuclear companies face questions over their status as arms of the state

Here comes a new Chinese export: Nuclear reactors, CBS, 24 Aug 16  BEIJING – On a seaside field south of Shanghai, workers are constructing a nuclear reactor that’s the flagship for Beijing’s ambition to compete with the U.S., France and Russia as an exporter of atomic power technology.

The Hualong One, developed by two state-owned companies, is one multibillion-dollar facet of the Communist Party’s aspirations to transform China into a creator of profitable technology from mobile phones to genetics.

Still, experts say Beijing underestimates how tough it will be for its novice nuclear exporters to sell abroad. They face political hurdles, safety concerns and uncertain global demand following Japan’s Fukushima disaster.

China’s government-run nuclear industry is based on foreign technology but has spent two decades developing its own with help from Westinghouse Electric, France’s Areva and EDF, and other partners. A separate export initiative is based on an alliance between Westinghouse and a state-owned reactor developer.

The industry is growing fast, with 32 reactors in operation, 22 being built and more planned, according to the World Nuclear Association, an industry group. China accounted for eight of 10 reactors that started operation last year and six of eight construction starts.

Abroad, builders broke ground in Pakistan last year for a power plant using a Hualong One, supported by a $6.5 billion Chinese loan. Also last year, Argentina signed a contract to use the reactor in a $15 billion plant financed by Chinese banks.

Sales come with financing from state banks, a model that helped Chinese companies break into the market for building highways and other public works in Africa and the Middle East. State-owned companies also are lining up to invest in nuclear power plants in Britain and Romania.

“This is generating significant build-up of skills and industrial experience,” said Mycle Schneider, a nuclear energy consultant in Paris, in an email.

Still, Beijing is “seriously underestimating” how hard global sales will be, said Schneider. He said obstacles include strict quality controls, regulations that differ from country to country and competition from the falling cost of wind and solar.

“There is simply no market out there,” said Schneider.

At home, Beijing faces public unease about nuclear power following an avalanche of industrial accidents and product safety scandals.

This month, thousands of residents of Lianyungang, north of Shanghai, protested after rumors spread that a facility to process nuclear waste might be built there. Authorities said the city, home to one of China’s biggest nuclear power plants, was only one of several being considered. After more protests, they announced the search for a site was suspended.

Overseas, China’s nuclear companies face questions over their status as arms of the state………

China’s nuclear industry has yet to report a major accident but reflexive official secrecy makes it hard for outsiders to assess its safety.

Changes in Chinese-designed models based on foreign technology, such as making reactors bigger while using cooling techniques for smaller units, “raise questions about safety and the good judgment of Chinese reactor engineers,” said Edward Lyman, a nuclear power specialist for the Union of Concerned Scientists in Washington, in an email.

“It is crucial for countries importing Chinese nuclear technology to rigorously conduct their own oversight over the products they are buying,” Lyman said………http://www.cbsnews.com/news/here-comes-a-new-chinese-export-nuclear-reactors/

August 26, 2016 Posted by Christina Macpherson | China, marketing | Leave a comment