If the Shidao Bay commercial demonstration project succeeds, China will become the first country in the world to operate a high-temperature gas-cooled reactor (HTGR) nuclear power plant. This first-mover advantage could significantly reshape China’s role in the global nuclear industry, potentially transforming it from a technology importer into a major exporter of nuclear power solutions. China's nuclear energy sector is entering a golden era, driven by strong policy support and technological innovation.
Since 2005, the Chinese government has renewed its focus on nuclear power development. The "Tenth Five-Year Plan" initially called for "proper development," which was later upgraded to "actively develop" in the "Eleventh Five-Year Plan." More recently, the Communist Party of China's "Suggestions" for the Twelfth Five-Year Plan emphasized "efficiently developing nuclear power with safety as a priority."
According to the upcoming "New Energy Industry Development Plan," China aims to increase its nuclear power capacity to 86 million kilowatts by 2020. Although nuclear power currently accounts for only 2% of China’s electricity generation, the country is constructing 25 units with a total capacity of 27.73 million kilowatts—nearly 40% of the global nuclear construction pipeline.
Currently, the AP1000, a third-generation U.S.-developed nuclear technology, is widely used in China. If successfully commercialized, it could eventually replace the second-generation plus technology, becoming the dominant choice for future nuclear projects.
Beyond the national push for nuclear expansion, Tsinghua University’s Institute of Nuclear Energy and New Energy Technology is advancing the commercial demonstration of China’s fourth-generation HTGR technology. While many are unfamiliar with fourth-generation nuclear systems, China has already taken a global lead in this field.
Zhang Zuoyi, president of the Tsinghua Nuclear Research Institute, told *Oriental Weekly*: “If the Shidao Bay project succeeds, China will be the first country in the world to operate a commercial HTGR power station. This technological and business first-mover advantage could position China as a leading exporter of nuclear technology.â€
The project is now awaiting a construction permit. After 30 years of research, the High-Temperature Gas-Cooled Reactor Project, launched under the 863 Program, has reached a critical milestone.
**Intergenerational Debate**
Why does China continue to develop third-generation reactors while still using second-generation technology? Zhang Zuoyi argues that the concept of generations in nuclear power is not always scientifically accurate. He explains: “The second-generation plus technology is still dominant, but third-generation reactors are also being built. However, this doesn’t mean the second generation will be phased out, as it still meets current safety and technical standards.â€
Lu Feng, a professor at Beijing University, agrees: “The mainstream nuclear technology isn’t developed in a straight line. The division into generations creates an illusion of progress.â€
In 1999, the U.S. introduced the concept of a “Fourth Generation Nuclear Energy System,†emphasizing inherent safety. In 2001, the U.S. Department of Energy established the International Forum for Fourth-Generation Nuclear Energy Systems, promoting six types of next-gen reactors, including the high-temperature gas-cooled reactor.
These reactors use helium as a coolant and can generate both electricity and hydrogen. In 2009, the U.S. announced the Next Generation Nuclear Plant (NGNP) project, aiming to deploy high-temperature gas-cooled reactors for industrial applications, expanding nuclear energy beyond traditional uses.
Zhang explained: “PWRs are large, but HTGRs are smaller. Their design allows for passive cooling, eliminating the need for water-based systems. This makes them inherently safer.â€
In 2009, Oak Ridge National Laboratory evaluated Tsinghua’s HTGR design and concluded that it offers unmatched safety, potentially preventing accidents like Chernobyl or Fukushima. It also boasts higher efficiency, comparable to thermal power plants.
**China Leading the Way**
Although the U.S. first proposed HTGR concepts in the 1940s, research was halted in the 1960s and later transferred to Germany. By the 1990s, Germany had built experimental and demonstration reactors, but due to public opposition to nuclear energy, the project was abandoned.
Tsinghua University began developing HTGRs in the 1970s, led by Wang Dazhong and Zhang Zuoyi. Under the “863†program, they started R&D in 1986. By 2003, the 10MW HTR-10 achieved full-power grid connection.
In 2006, the Shidao Bay HTGR project was selected as one of China’s 16 major science and technology initiatives. Expected to start operations in 2013, it features two 100,000-kilowatt reactor modules connected to steam turbines.
Oak Ridge researchers praised the modular design, calling it a breakthrough that ensures safety and cost-efficiency. Zhang noted that HTGRs require less cooling, simplifying systems and reducing reliance on imported components. Materials are mainly steel and graphite, making them cost-effective and compatible with existing thermal power infrastructure.
**A Latecomer Becomes a Leader**
Zhang describes China’s rise as a “toy-rabbit race.†While other countries paused their research, China maintained steady progress through policy support. “It’s like a rabbit sleeping, and the turtle caught up,†he said.
However, the U.S. has since re-entered the race, investing $180 million annually and organizing large teams for HTGR research. Despite having only 1,000 researchers, China lags behind in funding and scale.
Zhang warns that if the U.S. completes its NGNP project first, it could gain a significant market edge. “Whoever builds a commercial power station first will have the advantage,†he said.
**Standing at the Threshold**
Zhang is anxious about the pace of commercialization. The Shidao Bay project has spawned two key companies: China Nuclear Energy Technology Co., Ltd. (CNE), and Huaneng Shidaowan Nuclear Power Co., Ltd. CNE, often called the “Westinghouse of the Future,†is a major supplier for the project.
Despite plans to start construction in 2010, the project remains pending approval. A nuclear expert noted that safety verification is a major hurdle. Meanwhile, competition among China’s nuclear giants has slowed approvals.
Huaneng Group hopes to turn the lab project into a commercial success, planning to build a 4-million-kilowatt HTGR plant and even a facility in Hainan. However, the technology is still in early stages, with commercialization expected no earlier than 2015.
An official from Huaneng Shidaowan confirmed that all preliminary reports are complete, but the project awaits a construction permit. Zhang believes the real start will come when the first concrete is poured.
While some experts doubt the commercial viability of HTGRs in the next decade, Zhang remains optimistic. “Once our demonstration plant operates, we will find a market. Many foreign companies are already interested in our technology.â€
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