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China's nuclear companies eyeing massive South African tender
Last Updated: 2014-03-15 08:04 | China Daily
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China's nuclear companies are promoting their own technology in South Africa, which is set to offer the largest tender in the country's history-an estimated 1 trillion rand ($93 billion) contract to build six new nuclear reactors by 2030.

South Africa marks a potential new market for Chinese nuclear companies, including State Nuclear Power Technology Corp and China General Nuclear Power Corp.

"We have been planning years ahead for cooperation. If we lose this gold en opportunity to export our reactors there this time, we will have to wait another 50 to 60 years," said an employee at Beijing -based State Nuclear Power Technology Corp who preferred to remain anonymous.

Nuclear energy always involves governments, but bilateral energy cooperation agree ments, which cover the supply of nuclear energy products, infrastructure funding, supplier development and localization, as well as skills development, are still under consideration between China and South Africa, according to the website of the Mini stry of Commerce.

In February, the Nuclear Energy Corp of South Africa signed a skills development and training agreement with the two Chinese State nuclear energy corporations-China General Nuclear Power Corp and State Nuclear Power Technology Corp-in Johannesburg.

The agreement will create opportunities for young South Africans to further their studies in nuclear energy and other specialized areas of energy at Chinese universities, with funding of up to 95 percent from Chinese institutions.

Wang Binghua, president of State Nuclear Power Technology, which formed a joint venture with Westinghouse Electric Co, the US nuclear group owned by Japan's Toshiba, to help sell Westinghouse nuclear reactors globally, said it was a key step toward nuclear power cooperation between China and South Africa.

He said China has intellectual property rights for the third-generation nuclear power technology known as CAP1400, based on technology used in the AP 1000 reactor technology of Westinghouse, which means that China is able to export its own reactors.

"It is very important for China because, by achieving our own nuclear technology, China could become a strong nuclear power country and establish itself on the international stage," he said.

At the same time, bidders from countries such as France, the US, Canada and South Korea are all desperately seeking a slice of the action, as are construction companies and equipment manufacturers capable of fulfilling a deal of such magnitude.

But China's nuclear industry has its own advantage in winning the bid.

Premier Li Keqiang said on Thursday when he met the media to wrap up the annual session of the national legislature that, while meeting the same quality, China is able create the construction equipment faster at a lower cost if overseas countries want to build high-speed railways and nuclear power plants.

China's nuclear energy development is a big priority on the government's agenda not only as an alternative energy source but also as a potential industry for export.

Sun Qin, chairman of China National Nuclear Corp, said China has already gained some successful experience of nuclear power plant construction and operation in overseas countries, a fact that gave the Chinese nuclear companies an edge over other companies.

"Nuclear markets in new emerging countries are key targets for China," he said on the sidelines of the National People's Congress, which ended on Thursday.

In the mas sive buildup plan for nuclear, two of China's largest State-owned nuclear companies-China General Nuclear Power Corp and China National Nuclear Corp-are looking to go public on the Hong Kong stock exchange. The move will open the companies up to further scrutiny, both at home and abroad, and enable them to gain more capital for their planned nuclear programs.

China's State-owned nuclear companies are looking at opportunities in more developed markets as well. Earlier reports said China General Nuclear Power Corp and China National Nuclear Corp are buying into the Hinkley Point nuclear power project in the county of Somerset, England.

China operates 17 nuclear reactors at home and is building a further 28 reactors. According to the World Nuclear Association, its combined total of domestic reactors either under construction, planned or proposed is around 150-more than one-third of the 435 nuclear reactors presently operating commercially around the world.

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