China is home to the world’s first small modular nuclear reactor

(Bloomberg) – China continues to claim to be the world’s biggest proponent of the new nuclear energy technology by plugging its first small modular reactor into the grid.

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The China Huaneng Group Co.’s 200-megawatt block 1 reactor in Shidao Bay is now feeding electricity into the grid in Shandong Province, the China Nuclear Energy Association announced in a WeChat post. A second reactor will be tested before it is connected and the plant will go into full commercial operation in the middle of next year.

The plant is the world’s first modular high-temperature gas-cooled high-temperature reactor that heats helium instead of water to generate electricity. It’s a so-called fourth generation reactor that passively shuts down if something goes wrong – unlike active systems that may not be able to initiate safety measures in the event of a power failure, as happened in the Fukushima Daiichi accident in Japan a decade ago.

No country in the world invests in nuclear power as much as China, which is to invest up to 440 billion dollars in new power plants over the next decade and a half and replace the USA as the leading nuclear power producer.

At 200 megawatts, the small module reactors – or SMRs – are about a fifth the size of China’s first self-built reactor design, known as the Hualong One. It is this size and the promised flexibility and cost savings that make nuclear experts most excited about SMRs. The US, UK and Russia are also at an advanced stage in manufacturing the technology, according to Fitch Solutions.

In a future power system dominated by wind and solar power, Wood Mackenzie Ltd. smaller reactors will be better positioned than the giants of the past to compensate for the interruption in renewable energy sources. And because of their size and safety features, they can be built in a central facility and delivered where generation is needed, potentially creating economies of scale and reducing construction costs.

The story goes on

“SMRs should be less costly to build and operate, faster to implement and have shorter downtimes during refueling than traditional nuclear power plants,” said Jefferies analyst Bolor Enkhbaatar in a December 20 research note.

As technology evolves, it could even fall into the boilers of existing coal-fired power plants, turning the world’s biggest polluters into clean energy sources, according to the World Nuclear Association.

There is still a long way to go before then. In order for reactors to be cheap, they must be built quickly, and it took Huaneng nearly a decade to complete the Shidao Bay Project. The final price of the project was not disclosed.

Still, the power pouring through Shandong this morning is further evidence that China’s nuclear bet is paying off.

Today’s events

Today’s diagram

Eisenerz extended its stormy rebound from an 18-month low as measures in China to support the hotly contested real estate sector bolstered the demand outlook. Authorities are encouraging banks to fund the acquisition of projects from distressed property developers and are urging financially sound real estate companies to make such purchases. In addition, domestic banks cut borrowing costs for the first time in 20 months.

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Next week

Wednesday December 22nd

Thursday December 23rd

Friday December 24th

  • China weekly iron ore stocks

  • Shanghai Stock Exchange weekly inventory, ~ 3:30 pm

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