Chinese nuclear firms eye UK market
Updated: 2015-07-10 07:22
By Cecily Liu(China Daily Europe)
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Morgan says the UK's infrastructure projects typically require large capital investments, though operating expenditures are considered lower than with other technologies, making them attractive long term for Chinese investors.
"The operational design life of a nuclear plant is typically longer than other types of plants. This type of investment may suit long-term investors looking for returns over a longer operational period, or strategic investors looking to gain experience and operational know-how in the nuclear sector for their own domestic nuclear programs," Morgan says.
CGN and CNNC are likely to invest in Hinkley Point C financially, but they also recognize more benefits can be realized long term as technology investors, which effectively means bringing China's Hualong technology to the UK.
Because much of the construction must be done in the UK, many British nuclear sector companies are hoping to enter the supply chain of Chinese nuclear technology and remain a part of this supply chain as its global exports grow.
One company aiming to help Chinese firms in the UK is Amec Foster Wheeler, which assists nuclear projects around the world. It has deals in place with the two Chinese nuclear investors in Hinkley Point C to collaborate in a range of potential markets in reactor design, operation and decommissioning.
Samir Brikho, chief executive of Amec Foster Wheeler, says a key advantage it has is flexibility. "Our expertise is not limited to any type of nuclear technology," he says.
Brikho says he thinks Chinese nuclear technology quality is improving, particularly because China has accumulated experience building stations based on designs from abroad. "Now Chinese indigenous designs can be applied in international nuclear programs."
Brikho says the important criteria to evaluate nuclear programs include schedule, price, adaptability of plan and waste treatment. He says Chinese nuclear technology has a key advantage, especially in keeping projects on budget and on schedule, and the challenge is to replicate this success in the UK market.
James McNamara, nuclear strategy and development director at Hayward Tyler, says he hopes a lot of the processes Hayward Tyler specializes in will be implemented in the Chinese nuclear design for the UK, particularly processes relating to motor and pump applications.
Another opportunity he sees is his company's ability to help Chinese firms manufacture some of their technology and components at Hayward Tyler's plant. "We can use our facility and workforce to produce components for Chinese nuclear technology. We can also help with the assembly and testing of their components," he says.
Hayward Tyler has worked with Chinese companies for 40 years, mostly in power generation, and McNamara says that would help establish a good relationship with Chinese nuclear firms in the UK.
The UK nuclear regulator is one of the strictest in the world, and if Chinese firms successfully pass their design through the UK's generic design assessment, they will be in a good position to export to other countries, McNamara says.
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