U.S.-Chinese Agreement Provides Path to Nuclear Energy Expansion in China

January 9, 2007 // Published as a news service by IHS

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U.S. Department of Energy (DOE) Secretary Samuel W. Bodman and Chinese Chairman of National Development and Reform Commission (NDRC) Ma Kai signed a Memorandum of Understanding (MOU) that is designed to pave the way for Westinghouse Electric Company to construct four civilian nuclear power plants in China.

The agreement illustrates the U.S. government's support of the Chinese expansion and use of safe, emissions-free nuclear power and the related technology transfer.

"This is an exciting day for the U.S. nuclear industry," said Bodman. "This agreement is good for the people of China and good for the people of the U.S. It is an example that if we work together, we can advance not only our trade relations, but also our common goal of energy security. This DOE-supported, Generation 3+ reactor is safer and more efficient than current reactors and could help spur development of a nuclear renaissance in the U.S."

The initial agreement between China and Westinghouse is for four reactors, two at each site in Sanmen and Yangjing. The reactors will be Westinghouse design AP1000 and will be 1100 megawatts each. The agreement could lead to as many as 5,500 jobs in 12 U.S. states, said the DOE.

The precursor to the AP1000, the AP600, was funded by the DOE in the 1990s under a program to develop an advanced light water reactor. The department is engaged in a cost-sharing agreement with Westinghouse for the AP1000 detail design.

The total design is set to cost $436M, of which the DOE will fund $218M over seven years fiscal year 2005-fiscal year 2011. This cost share supported the completion of Nuclear Regulatory Commission (NRC) design certification in 2005 and supports engineering for the NRC licensing and construction of the first standard AP1000 nuclear plant design, said the DOE.

The U.S. government began working with the Chinese government to support the bid of a U.S. manufacturer in 2004.

Nuclear energy provides about 1.5% of China's total energy. The Chinese expressed a goal of building 30 new reactors over the next 15 years, which would produce 4% of their electricity, said the DOE. In addition, the U.S. accepted China as a partner in the development of the Generation IV nuclear reactor.

Source: U.S. Department of Energy (DOE).