Datang agrees to go nuclear energy
By Wan Zhihong (China Daily)
Updated: 2006-01-27 06:42
Datang International Power Generation Co Ltd, China's second-largest Hong
Kong-listed generator, is diversifying by taking a stake in a new nuclear
project in East China's Fujian Province.
The company has entered into an investment agreement with Guangdong Nuclear
Power Investment Co Ltd to establish Ningde Nuclear Power Company.
The project will cost 23.4 billion yuan (US$2.9 billion), with Datang Power
agreeing to take a 49 per cent share, according to a statement to the Hong Kong
stock exchange yesterday.
The Ningde project consists of two 1,000-megawatt nuclear power generating
units. The plan has been submitted to the National Development and Reform
Commission for approval.
An official with Datang Power, who declined to be identified, said the new
project was part of the company's strategy to diversify its power sources.
He said this was because of increasing pressure from rising coal prices and
environmental requirements. A nuclear power project will help reduce such
pressure, as well as risks, according to the official.
He said Datang Power does not have experience in constructing nuclear power
Apart from nuclear energy, the company is also developing other kinds of
power plants, such as hydropower projects in Southwest China. Diversification
into nuclear power generation is a growing trend among Chinese power companies.
Although the initial capital investment is high, the government is supporting
these projects and this year has introduced a new renewable energy law.
(China Daily 01/27/2006 page9)