context: Opinions on ramping up green transition, issued in August, proposed to 'accelerate the construction of coastal nuclear power bases', marking the first shift towards an accelerated approach. This is a departure from the previously 'active, safe and orderly' approach emphasised in recent years. The PRC restated approvals of nuclear reactors in 2019 following Fukushima. In 2022 and 2023, China approved ten nuclear power reactors each year. Previously, the year with the most units approved in a single year was 2008, when 14 nuclear power units were approved.
The State Council executive meeting on 19 August approved the construction of 11 nuclear power reactors across five sites in Jiangsu, Guangdong, Shandong, Zhejiang and Guangxi provinces, reports Caixin. The total investment in these projects is expected to exceed C¥200 bn.
Among these projects is the Jiangsu Xuwei plant, a fourth-generation nuclear power reactor, which will be the first in the world that couples high-temperature gas-cooled reactors with pressurized water reactors.
According to an insider from the energy investment industry, the cost of electricity from this fourth-generation technology is currently estimated to be around C¥0.6/kWh (excluding tax), more than double the C¥0.25/kWh (excluding tax) cost of mature third-generation reactors.
Future cost reductions will likely depend on scaling up and advancing the technology further. However, the high-temperature gas-cooled reactor offers the potential for diversified revenue streams through various utilisation scenarios. For instance, it can be integrated with petrochemical industrial parks to supply steam and support chemical production processes, notes the report.
Sources close to the project developer, China National Nuclear Corporation, informed Caixin that the petrochemical industry’s consistent demand for steam makes it highly compatible with nuclear energy heating. Nuclear energy can effectively replace traditional coal consumption, addressing the heat source needs of petrochemical enterprises.
Additionally, the low-carbon nature of nuclear energy can help save carbon emission quotas for petrochemical industrial bases and local governments, thereby reducing the pressure of emission reduction in high-energy-consuming industries.