Economy

Markets

Industries

Insights

Reports

Events

Areva powers up 'ultra high-voltage' production

By Wan Zhihong (China Daily)
Updated: 2009-05-14 08:08

Delegates line up at the inauguration ceremony marking the official opening of the new facility. [China Daily]

On the outskirts of Wuhan, capital of central China's Hubei province, a new 600 million yuan power transformer plant has begun production. It is one of the latest manufacturing facilities in the country to design, produce and test ultra high-voltage (UHV) transformers.

The joint venture between leading domestic manufacturer Shanghai Electric and French energy company Areva can initially produce equipment with a combined capacity of 20,000 MVA (megavolt amperes) with planned expansion to 35,000 MVA. It will offer a full spectrum of power transformers up to 1,200 kV.

Related readings:  China to sign nuclear power pact with Areva  Areva aims to transform nation's power industry  AREVA opens factory in Suzhou  Areva deals with China on 2 nuclear reactors

"The Wuhan plant represents our largest investment in China in recent years," said Gerhard Seyrling, senior vice-president, innovation and continuous improvement of Areva's transmission and distribution division.

"In addition to local manufacturing at facilities like Wuhan, Areva T&D's technology center created last year in Shanghai will provide local research and development to further support the building of China's UHV power grid, once again illustrating Areva's commitment to state-of-the-art technologies in the nation."

Since Areva acquired the T&D business from Alstom in 2004, the company has been successful in boosting local manufacturing and market presence in China, Seyrling told China Daily in an earlier interview. By last year the company had tripled its number of orders in China, and its goal is to triple that again before 2012.

While making equipment to assist in power transmission, Areva's Wuhan plant is itself designed and built to save energy and reduce emissions. Instead of a traditional diesel generator or boiler, it employs alternative environmentally friendly solutions to cut CO2 emissions.

Energy efficient lights are installed inside office buildings and workshops, while all exterior lighting throughout the site is powered by solar energy. Waste condensed water from steam is used as a new source of heat.

A rainwater collection and storage system is built for landscape irrigation and to clean roads and vehicles. A breakthrough waterless flushing system is reused in most washrooms, which not only reduces fresh water consumption but also preserves the environment.

By using these environmentally-friendly methods, the plant can reduce electricity consumption by 30 percent compared with conventional factories. It can cut water use by 40 percent, according to Areva T&D. The Wuhan transformer factory will set a new benchmark for green factories in China.

"We have very high ambitions for the Chinese market, which currently accounts for 23 to 25 percent of the world T&D market," said Seyrling.

"Despite the world financial crisis, we have not made any adjustment on our strategy in China, as the country's power transmission sector will continue to see strong growth."

"Today one of our key focuses here in China is UHV power transmission. We are investing substantially in capacity increase and deployment of expertise and technologies to meet the Chinese market need," he added.

China, the world's second-largest energy consumer, has started operation of its first UHV power transmission line, which links coal-rich Shanxi province to Hubei. The project, which boasts the largest capacity in the world, is able to transmit electricity at 1,000 kV over 640 km.

State Grid Corp of China, builder of the first UHV line, earlier said it planned to invest 100 billion yuan in building UHV power transmission lines over the next three to four years.

With the opening of the Wuhan plan "Areva T&D can better support China's plan to upgrade its power transmission network and expand the UHV power network", said Seyrling. The company will open another power transformer plant in Shanghai later this year. The facility, same as the Wuhan plant, is a cooperation between Shanghai Electric and Areva T&D.

Located in Shanghai, Areva T&D's China technology center is designed to support the company's business growth across the country and globally.

"Our goal is not only to make in China, but also design and innovate in China," Seyrling said. "The center will focus on R&D of leading-edge technologies such as UHV power transmission, that are all in strong demand in China."

The center, which aims to recruit 350 engineers by 2012, will further develop its collaboration with local universities, research institutes and industrial partners, and support Areva T&D's centers of competence throughout China.

It will also become Areva's regional testing center for Asia, engaging in projects, such as materials research, testing and local standardization management.

Xue Weiping, vice-general manager of Shanghai Power Transmission & Distribution Co of Shanghai Electric, said domestic players are catching up fast with their foreign counterparts. In fact, they are much closer to each other in terms of technology level.

"But Chinese companies have much to learn from foreign manufacturers in three main areas. They are corporate management, process control and supplier management," said Xue.