New Trends

in the Chinese Nuclear Market for 2011

1      

•  Main Stakeholders •  Fukushima’s influence •  Regulations and

certifications •  The Chinese

equipment manufacturers

•  The local competition •  Market opportunities

•  Biddings and direct sales

•  Joint efforts in the international market

•  Opportunities of the localization

•  Case study •  Q&A

2

Agenda

•  China National Nuclear Corporation CNNC •  China Guangdong Nuclear Power Corporation

CGNPC •  State National Power Technology Corporation

SNPTC •  China Power Investment Corporation CPIC •  Huaneng Power HPC •  Taishan Nuclear Power Joint Venture Company

TNPJVC •  In the waiting list: Datang, Huadian, Guodian

3

Main  Stakeholders-­‐  Holdings  and  Operators

•  China Nuclear Power Engineering CNPE •  China Guangdong Nuclear Power

Engineering Company CNPEC •  State Nuclear Power Engineering

Company SNPEC •  China Institute of Atomic Energy CIAE •  Chinergy (CNEC+Tsinghua Holding

Group, +CGNPC 15%)

4

Main  Stakeholders-­‐  EPC

•  Shanghai State Nuclear Engineering Research and Design Institute SNERDI

•  China Nuclear Power Engineering Company CNPE

•  China (Guangdong) Nuclear Power and Design Company CNPDC

•  China (Guangdong) Nuclear Power Research Institute CNPRI

•  Nuclear Power Institute of China NPIC •  Institute of Nuclear and New Energy Technology

INET

5

Main  Stakeholders-­‐  Design  and  Research

CGNPC  and  SNPTC  

•  Suzhou Nuclear Power Research Institute SNPRI

•  State Nuclear Power Automation System SNPAS

•  China Techenergy Company CTEC

•  State Nuclear Power Research and Design Institute SNPRDI

CNNC  

•  China Institute of Radiation Protection CIRP

•  Research Institute of Nuclear Power Operation RINPO

•  China Nuclear Control System Engineering Company CNCS

•  East China Engineering Power and Design Institute ECEPDI

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Main  Stakeholders-­‐  other  Fields

•  Beijing Research Institute of Uranium Geology BRIUG

•  China Nuclear Engineering and Construction Corporation CNECC

•  China Nuclear Energy Industry Corporation CNEIC

•  China National Nuclear Corporation International CNNC

•  China Guangdong Nuclear Uranium Resources Company CGNURPC

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Main  Stakeholders-­‐  Specific  organiza?ons  

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CNPE  is  in  charge  of  the  EPCSM  

NNSA  inspects  equipment  (604/601)  

NNSA  delivers  the  construc?on  permit  

NNSA  study  the  Preliminary  Safety  Assessment  Report    

MEP  study  the  Design  Phase  Environmental  Impact  Report  

NDRC  study  the  Project  applica?on  report  (includes  n.  of  reactors)  

NDRC/NNSA  study  the  FSR  

CNPE  :  Feasibility  Study  Report  

CNNC  project  submiNed  to  NDRC  

Example  of  a  CNNC  Project  

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CNPE  

NEPDI  

NPIC  

CNCS  

RINPO  CNEIC  

812  

ECEPDI  

Examples  of  CNPE  Suppor?ng  Units

In Construction •  Fuqing unit 1/2/3 CNNC •  Fangjiashan unit ½ CNNC •  Changjiang unit ½ CNNC •  Tianwan unit ¾ CNNC •  Sanmen unit ½ CNNC •  Hongyanhe unit 1/2/3/4

CGNPC •  Yangjiang unit 1/2/3 CGNPC •  Ningde unit 1/2/3/4 CGNPC •  Taishan unit ½ CGNPC •  Fangchenggang ½ CGNPC •  Haiyang unit ½ CPIC

Delayed •  Fuqing unit 4/5/6 CNNC •  Tianwan unit 5/6/7/8 CNNC •  Changjiang unit ¾ CNNC •  Xudapu unit 1/2/3/4/5/6 CNNC •  Taohuajiang unit ½ CNNC •  Dafan unit ½ CGNPC •  Yangjiang unit 4/5/6 CGNPC •  Fangchenggang unit ½

CGNPC •  Lufeng unit ½CGNPC •  Shaoguan unit ½ CGNPC •  Pengze unit ½ CPIC

10

Fukushima’s  Influence

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12

Regula?on  and  Cer?fica?on

                     

•  The regulation on the supervision and management of imported safety related nuclear equipment (HAF604) from the Ministry of Environmental Protection in China (MEPC) has been announced on January 1st, 2008.

•  Promulgated on January 1st, 2008, it requires foreign corporate to register at the NNSA.

•  Foreign companies which do not get the HAF604 certification cannot participate in any bidding in China.

•  HAF 601 includes inspection checks for local companies •  ASME and RCC are mandatory, some exception for

KTA •  IEEE for electric components

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1  

1  

1  

2  

2  

3  

4  

5  

6  

7  

8  

12  

14  

46  

48  

82  

0   10   20   30   40   50   60   70   80   90  

Belgium  

Luxemburg    

India  

Switzerland  

Canada  

Sweden  

Austria  

Spain  

UK  

South  Korea  

Russia  

Japan  

Italy  

USA  

Germany  

France  

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0  

5  

10  

15  

20  

25  

30  

35  

40  

45  

Feb  Mar   Apr  May   Jun   Jul   Aug   Sep   Oct   Nov  Dec   Jan   Feb  Mar   Apr  May   Jun   Jul   Aug   Sep   Oct   Nov  Dec   Jan   Feb  Mar   Apr  May   Jun   Jul   Aug   Sep   Oct   Nov  Dec  

2009   2010   2011  

Number  of  Issuance  since  2009

15

0%  

10%  

20%  

30%  

40%  

50%  

60%  

70%  

80%  

90%  

100%  

2008  2009  

2010  2011  

62  

183  91  

22  

11  

166  

32  

40  

HAF  604   HAF  601  

Cer?fica?ons  Issued  since  2008

•  188 local companies, including 13 JV and 7 WFOE. All the the Chinese part of the JV is often a state owned company

•  90 have design capacity •  7 have competence in Installation and NDT •  Only 6 Manufacturers have ASME certification (17 ASME

certifications in China). •  665 HAF 601 (vs. 250 HAF 604 for foreigners)

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The  Chinese  Equipment  Design  and  Manufacturers

CNNC SUFA Technology Industry Co., Ltd. Valve Flowserve (USA) & Darda

Dalian Danai Pumps Co., Ltd. Pump Flowserve (USA) & Darda

Dalian Deep Blue Pump Co., Ltd. Pump Lewa & Moyno Pumps (USA) & Hermetic Pumpen

Dalian Hermetic Pump Co., Ltd. Pump Hermetic Pumpen (GER)

Dongfang Areva Nuclear Pump Co., Ltd. Pump Areva (FR)

Jiangsu Biaoxin Jiubaotian Industrial Co., Ltd. Pipes and pipe fittings Kubota (JAP)

Nanjing Sun Tola Ripple Tube Co., Ltd. Ripple tube expansion joint Technoflex &Tola (JAP)

Shanghai Cable Factory Cable Fujikura (JAP)

Shanghai Yidian Foxbolo Co., Ltd. Cabinets Foxboro (USA)

Shanghai KSB Co., Ltd. Shanghai Electric Pump KSB (GER)

Shenzhen Shiyingda Pipeline Co., Ltd. CNNC 23 Pipes and pipe fittings Spie Thermatome (FRA)

Xi'an Nuclear Instrument Factory Sensor Honeywell (USA)

Yantai Taihai Manoir Nuclear Equipment Co., Ltd. Pipes and pipe fittings Manoir Industries (FRA)

Sulzer (Dalian) Pumps&Compressors Ltd. Pump Suzler (CH)

HOPPECKE Power System (Wuhan) Co., Ltd. Battery Hoppecke (GER)

Pall Filtration (Beijing) Co., Ltd. Pressure vessel Pall (USA)

Shanghai Morimatsu Pressure Vessel Co., Ltd. Pressure Vessel and Heat exchanger Morimatsu (JAP)

Dalian Hitachi Machinert Equipment Co., Ltd. Pressure vessel, Heat Exchanger and Gate Hitachi (JAP)

Dalian Diguo Canned Motor Pump Co., Ltd. Pump Teikoku Electric (JAP)

17

The  Joint  Ventures  and  WOFE

•  Shanghai Electric (KSB)

•  Dongfang Electric (Areva and Alstom)

•  Haerbin Electric (Mistubishi, Vanatome)

•  China Erzhong

•  China First Heavy Industries

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The  Major  Equipment  Manufacturers

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0  

20  

40  

60  

80  

100  

120  

The  Local  Compe??on

•  The AP1000 is a key technology which requires large support from foreign companies.

•  The heavy forging is not at international level. •  The equipment manufacturers cannot match the

purchase orders, in particular for Generation 3 NPP. •  Sales of software for training EPC companies. •  Local companies from other industries (oil,

aerospace) will enter the nuclear market. •  Involvement in the reprocessing plant.

20

Market  Opportuni?es

•  As a foreign company you need the HAF certification.

•  You must be on the qualified supplier list of the EPC company.

•  Your team must have close relation with the NPP owner.

•  If you manufacture a key component you will have to partner with the EPC company.

21

Bidding  and  Direct  Sales

•  Technical  mee?ng  with  design  department  of  the  related  ins?tutes.    

•  Inves?ga?on  of  the  Compe??on  for  the  bidding.  •  Internal  evalua?on  to  par?cipate  in  the  bidding.  •  Purchase  tender  documents  from  the  buyer.  •  Submit  the  proposal  within  1  (or  more)  month,  bidding  open,  clarifica?on,  evalua?on  and  so  on.  

•  Result  release.  

22

The  Bidding  Process

•  CGNPC will sell its NPP in South East Asia and East Europe

•  CNNC will sell its NPP in Middle East, Africa, and South America

•  SNPTC will sell the CAP1400 as competitor of Areva, Rosatom, AECL and Kepco.

•  Huaneng Group plans to sell the HTR to any country which is looking for heat and energy combined at low cost.

23

Join  Efforts  in  the  Interna?onal  Market

•  Produce and export to international market in order to obtain the HAF 601

•  Direct access to the manufacturers •  Reliable partner of the EPC companies •  Major Operators, such as EDF and soon

Tractebel source for billions of Euro of equipment in China.

•  China creates the first Nuclear Industrial Base

24

Opportuni?es  of  the  Localiza?on

•  Zhejiang is the cradle of China’s Nuclear Power: In 1982, the first domestic nuclear power station- QianShan 1 was launched in Zhejiang.

•  Over the last 20 years, Zhejiang has trained a large number of nuclear engineers and professionals.

•  Through long-term cooperation with CNNC, Zhejiang will be the major storage location for equipment and materials for China’s nuclear power stations.

China  Nuclear  Power  Base  in  Zhejiang

Certification •  Phoenix Armaturen

(Ger) •  Schott (Ger) •  Kaberlwerk Eupen (Bel) Certification ongoing: •  ABB Services (Ger) •  S+C (Ger) •  Adams Armaturen (Ger)

Sales •  Hamon Thermal Europe

(Bel) •  Gesellschaft für

Anlagen- und Reaktorsicherheit (Ger)

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Case  Study

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Nuclear  Power  Plants  (NPP)  in  Opera?on  in  China  

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NPPs  under  Construc?on  and  Planned          

Where construction has started, the dates are marked in bold. Those here not under construction are marked as 'planned' in the WNA reactor table. At 31 December 2010, 27 under construction: 29,790 MWe; 50 planned: 57,830 MWe (gross).

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Thank  you  

   

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Dynabond Powertech Service Co., Ltd. 北京代邦能源技术服务有限公司

Arnaud Lefevre

Tel: Fribourg +41-26-5140517 Cell: +41 76 5880966 Tel: Beijing +86-10-64681222 Fax: Beijing +86-10-64654957

alefevre@dynabondpowertech.com Http://www.dynabondpowertech.com