Companies

Nuke power firm chalks up mega investment plan

By Wan Zhihong (China Daily)
Updated: 2010-09-21 11:15

Technicians inspect a nuclear plant in Lianyungang, Jiangsu province. China plans to make nuclear energy a key component in its 12th Five-Year Plan (2011-2015). Wang Jianmin / for China Daily

CNNC to infuse 800 billion yuan by 2020, list arm to fund key projects

Beijing - China National Nuclear Corp (CNNC), the country's largest nuclear power company, plans to invest 800 billion yuan ($117.6 billion) into nuclear projects by 2020, in line with the country's move to accelerate the development of the industry.

Total investment in nuclear power plants, in which CNNC will hold controlling stakes, is expected to touch 500 billion yuan by 2015, Sun Youqi, vice-president of CNNC said during a press conference over the weekend.

In order to fund the company's expansion target, CNNC plans to list its subsidiary, CNNC Nuclear Power Co Ltd, said Chen Hua, assistant president of CNNC.

"We plan to rope in strategic investors by the end of this year. Our company will get ready for listing in the first half of next year," said Chen, who is also the president of CNNC Nuclear Power Co Ltd.

Zu Bin, a spokesman for China Nuclear Engineering Group Co, another major nuclear plants builder, also told reporters at the same conference that his company was also scheduled to go in for an initial public offering in Shanghai next year.

Meanwhile, Sun said CNNC's growth strategy would be in accordance with the development of the nuclear power sector in China. The country's nuclear power industry, which dates back to 1955, has seen accelerated growth since 2005, he added.

At present, China has 11 operational nuclear power reactors with a combined capacity of around 9,100 megawatts (mW). Still, nuclear power only accounts for around 1 percent of the country's total energy capacity.

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Nuclear power capacity is expected to touch 70,000 to 80,000 mW by 2020, accounting for around 5 percent of the total installed power capacity, according to industry insiders.

Development of the nuclear power industry will be an important component of the country's energy industry strategy during the 12th Five-Year Plan period (2011-2015), Li Junfeng, deputy director-general of the Energy Research Institute of the National Development and Reform Commission (NDRC) had told China Daily earlier.

"As for clean energy sources, they will be prioritized in terms of scale, with nuclear coming first, and wind and solar following," he said.

CNNC, which operates seven reactors currently, is building 10 reactors. The company has 12 reactors having received NDRC's initial clearance, Sun said.

Sun said CNNC would also like to tap the overseas market in future, mainly focusing on international cooperation in uranium resources.