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Released October 29, 2014 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - China's push into the European nuclear sector has advanced following a decision by Romania's state-owned Nuclearelectrica (Bucharest) to name China General Nuclear Power Company (CGN) as the preferred partner for the construction of new reactors at the Cernavoda nuclear power plant.
A letter of intent to complete Units 3 and 4 at Cernavoda has been signed by both companies. Under the terms of the investor agreement, CGN, which has been named the 'selected investor' will control a 51% stake in the project. The project is worth an estimated 6.5 billion ($8.2 billion).
"According to the amended time schedule, the following stages of the selection process are: the negotiation and signing of the Memorandum of Understanding (MoU) regarding the joint implementation of the Project and the negotiation of the Articles of Incorporation and Investors' Agreement of the new Project Company," Nuclearelectrica stated. "The Memorandum of Understanding regarding the joint implementation of the Project will be submitted to the approval of the General Meeting of Shareholders of Nuclearelectrica. The strategy for the continuation of the Cernavoda NPP Units 3 and 4 Project envisages the establishment of a new [joint-venture] company."
Cernavoda currently uses two CANDU 6 reactors supplied by Atomic Energy of Canada Ltd (AECL). They have a rated generating capacity of 706 MW each and were commissioned in 1996 and 2007, respectively. The new CANDU reactors at Units 3 and 4 will have a capacity of 740 MW each.
The Cernavoda project has been hit by numerous delays and partner changes.
Nuclearelectrica created a joint venture, EnergoNuclear, in 2008 to oversee the project, with international ArcelorMittal (NYSE:MT) (Luxembourg), Enel SpA (BIT:ENEL) (Rome Italy), RWE AG (OTC:RWEOY) (Essen, Germany), Electrabel S.A. (Brussels, Belgium), Iberdrola S.A. (MCE:IBE) (Bilbao, Spain) and GDF Suez S.A. (EPA:GSZ) (Paris, France). However, in January 2011, GDF, Iberdrola and RWE walked away from the project, citing economic uncertainty. For additional information, see January 26, 2011, article - Romanian Nuclear Project Hit by Departures.
Commenting on the deal, CGN said: "Romania is regarded as one of the most promising countries in Eastern Europe. The Romanian GDP growth in 2013 was 3.5%, among the countries with fastest economic development in EU. It is prediccted that Romania's annual GDP growth will reach 3.9% between 2014 to 2021, while electricity consumption will maintain 2-3% growth. The Romanian Government plans to build a five-unit nuclear power plant in the site. Unit 1&2 are operational, and Unit 3&4, a giant project highlighted by Romania government, has been approved by European Commission (E.C.) on 5 December 2010, and which planned to be put into operation in 2019 and 2020".
CGN said the deal is a milestone in its plan to expand beyond the Chinese nuclear market and 'go global'. Today, the company is responsible for operating 64% of China's nuclear fleet. It runs 11 plants with a total capacity of 11.62 gigawatts (GW) with another 15.5 GW of capacity on the horizon when it commissions 13 additional nuclear units which are under construction.
The company also has plans in the U.K. nuclear sector. The U.K. government signalled its support for Chinese involvement in its new Hinkley nuclear project last October after project owner, French energy giant Electricite de France (EPA:EDF) (Paris), confirmed that two Chinese companies, China General Nuclear Power Company (CGN) and China National Nuclear Corporation (CNNC), would become minority shareholders in the project with a joint stake of between 30-40%. For additional information, see October 18, 2013, article - U.K. Clears Way for Chinese Companies to Invest in Nuclear Plants.
This summer a watershed civil nuclear agreement between the U.K. and China was signed, opening the way for Chinese companies to build, own and operate a Chinese-designed nuclear power station in the U.K.. For additional information, see June 26, 2014, article - China Can Build U.K. Nuclear Plant.
View Plant Profile - 1036273
View Project Report - 82200001 82200009
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
A letter of intent to complete Units 3 and 4 at Cernavoda has been signed by both companies. Under the terms of the investor agreement, CGN, which has been named the 'selected investor' will control a 51% stake in the project. The project is worth an estimated 6.5 billion ($8.2 billion).
"According to the amended time schedule, the following stages of the selection process are: the negotiation and signing of the Memorandum of Understanding (MoU) regarding the joint implementation of the Project and the negotiation of the Articles of Incorporation and Investors' Agreement of the new Project Company," Nuclearelectrica stated. "The Memorandum of Understanding regarding the joint implementation of the Project will be submitted to the approval of the General Meeting of Shareholders of Nuclearelectrica. The strategy for the continuation of the Cernavoda NPP Units 3 and 4 Project envisages the establishment of a new [joint-venture] company."
Cernavoda currently uses two CANDU 6 reactors supplied by Atomic Energy of Canada Ltd (AECL). They have a rated generating capacity of 706 MW each and were commissioned in 1996 and 2007, respectively. The new CANDU reactors at Units 3 and 4 will have a capacity of 740 MW each.
The Cernavoda project has been hit by numerous delays and partner changes.
Nuclearelectrica created a joint venture, EnergoNuclear, in 2008 to oversee the project, with international ArcelorMittal (NYSE:MT) (Luxembourg), Enel SpA (BIT:ENEL) (Rome Italy), RWE AG (OTC:RWEOY) (Essen, Germany), Electrabel S.A. (Brussels, Belgium), Iberdrola S.A. (MCE:IBE) (Bilbao, Spain) and GDF Suez S.A. (EPA:GSZ) (Paris, France). However, in January 2011, GDF, Iberdrola and RWE walked away from the project, citing economic uncertainty. For additional information, see January 26, 2011, article - Romanian Nuclear Project Hit by Departures.
Commenting on the deal, CGN said: "Romania is regarded as one of the most promising countries in Eastern Europe. The Romanian GDP growth in 2013 was 3.5%, among the countries with fastest economic development in EU. It is prediccted that Romania's annual GDP growth will reach 3.9% between 2014 to 2021, while electricity consumption will maintain 2-3% growth. The Romanian Government plans to build a five-unit nuclear power plant in the site. Unit 1&2 are operational, and Unit 3&4, a giant project highlighted by Romania government, has been approved by European Commission (E.C.) on 5 December 2010, and which planned to be put into operation in 2019 and 2020".
CGN said the deal is a milestone in its plan to expand beyond the Chinese nuclear market and 'go global'. Today, the company is responsible for operating 64% of China's nuclear fleet. It runs 11 plants with a total capacity of 11.62 gigawatts (GW) with another 15.5 GW of capacity on the horizon when it commissions 13 additional nuclear units which are under construction.
The company also has plans in the U.K. nuclear sector. The U.K. government signalled its support for Chinese involvement in its new Hinkley nuclear project last October after project owner, French energy giant Electricite de France (EPA:EDF) (Paris), confirmed that two Chinese companies, China General Nuclear Power Company (CGN) and China National Nuclear Corporation (CNNC), would become minority shareholders in the project with a joint stake of between 30-40%. For additional information, see October 18, 2013, article - U.K. Clears Way for Chinese Companies to Invest in Nuclear Plants.
This summer a watershed civil nuclear agreement between the U.K. and China was signed, opening the way for Chinese companies to build, own and operate a Chinese-designed nuclear power station in the U.K.. For additional information, see June 26, 2014, article - China Can Build U.K. Nuclear Plant.
View Plant Profile - 1036273
View Project Report - 82200001 82200009
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
