State-owned China Guangdong Nuclear Power is said to be working on a plan with Japan's Toshiba, through the latter's nuclear power subsidiary Westinghouse Electric, to bid for British energy company Horizon Nuclear Power.

Chinese nuclear power companies have maintained an interest in overseas firms, though they are largely still inexperienced in using the third-generation nuclear technology that is used by Horizon. Regardless, Chinese firms can only invest in the project through stock participation, according to industry sources.

Though China accounts for 40% of global nuclear reactors, the country only has one overseas project, the Chashma nuclear power station in Pakistan.

German energy giants Eon and RWE decided to sell their joint ventures in Horizon earlier this year. Horizon has claims to preselected land to be used for the UK's third-generation nuclear power plants, and plans to build two nuclear reactors there.

 

The British government has approved eight sites for third-generation nuclear power plants, seven of which have received bids from overseas power companies, according to the Chinese Nuclear Power Society.

The advantage of Chinese nuclear companies is their abundant capital, which can handle the difficult task of financing on their own, without requesting government loans. The clear disadvantage, however, is a lack of knowledge of and experience with third-generation nuclear power.

Relatively little experience building overseas nuclear power plants poses another challenge for Chinese nuclear companies bidding on projects abroad. China's nuclear power industry has been developing quickly, but some firms will face operational problems if the government halts the approval of new domestic nuclear power plants.

The trust of other countries in the technology and ability of Chinese nuclear companies is the important point for now, say industry analysts.

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