Huaneng Power takes stake in Hainan Nuclear
Huaneng Power International has agreed to take over a 30% stake from parent company China Huaneng Group in Hainan Nuclear Power Co - the joint venture set up by China National Nuclear Corp (CNNC) and Huaneng Group to build and operate nuclear power plants.
Huaneng Power said that it had entered into an agreement with Huaneng Group under which it would acquire an equity interest representing 30% of the registered capital of Hainan Nuclear from Huaneng Group for 174 million yuan ($26 million) in cash. Upon completion of the transaction, CNNC will still hold 51% stake in Hainan Nuclear, while Huaneng Group will own the remaining 19% stake.
Huaneng Power said that it had entered into an agreement with Huaneng Group under which it would acquire an equity interest representing 30% of the registered capital of Hainan Nuclear from Huaneng Group for 174 million yuan ($26 million) in cash. Upon completion of the transaction, CNNC will still hold 51% stake in Hainan Nuclear, while Huaneng Group will own the remaining 19% stake.
Hainan Nuclear Power Co is the controlling shareholder of Huaneng Power International, owner of the Changjiang nuclear power project in Hainan Province, construction of which started in April 2010. The plant will eventually comprise four 650 MWe CNP-600 pressurized water reactors (PWRs) and will be built in two phases. The first unit is scheduled to begin operating in early 2015, while the second reactor should start up the following year. The total cost of the first two units is put at some 19 billion yuan ($2.8 billion). More than 70% of the equipment for the Changjiang plant is to be made in China.
In addition, Huaneng Power has agreed to acquire a 50% stake in Shanghai Time Shipping from Huaneng Energy and Communications (HEC) - another subsidiary of Huaneng Group - for 1.06 billion yuan ($160 million) in cash. The move is aimed at securing the company's supply and transport of coal.
In a statement, Huaneng Power said that the transfer of the assets is part of the implementation of Huaneng Group's undertking made to it that Huaneng Power will become the only platform for the ultimate integration of Huaneng Group's conventional energy businesses, which is benficial to Huaneng Power for "optimizing the structure of the power generating assets, accelerating the construction of clean energy business, further extending to the upstream business and enhancing coal storage and transportation capacity as well as stabilizing fuel supply for the coastal power plants."
It added, "After completion of the acquisition of interests in Hainan Nuclear, the company will further expand its scope of business areas through entering into the power market of Hainan Province and enhance its scale advantage and market position in the economically developed regions in the southeast coast."
Huaneng Power is one of China's largest listed power producers with controlled generation capacity of 50,033 MW and equity-based generation capacity of 46,512 MW. Its power plants are located in 17 provinces, municipalities and autonomous regions in China.
Researched and written
by World Nuclear News
