Hualong One Projects in China Achieve Construction Milestones

Zhangzhou Plant Progress

China National Nuclear Corporation (CNNC) announced the completion of the final concrete pour for the inner dome of Zhangzhou unit 3 on September 30. This milestone signifies the conclusion of civil engineering for the unit's inner containment structure, establishing a foundation for subsequent prestressed containment work and the installation of core nuclear equipment. The Hualong One reactor design incorporates a double-layered containment building, crucial for maintaining the integrity and leak tightness of the reactor building and containing radioactive materials.

Construction licenses for Zhangzhou units 1 and 2, both featuring Hualong One reactors, were issued in October 2019 to CNNC-Guodian Zhangzhou Energy Company. This company is a joint venture formed by CNNC (51%) and China Guodian Corporation (49%) in 2011. Construction of unit 1 began in October 2019, followed by unit 2 in September 2020. Unit 1 commenced commercial operation on January 1, 2025, and unit 2 on January 1, 2026.

In September 2022, China's State Council approved the construction of two additional Hualong One units, units 3 and 4, as Phase II of the Zhangzhou plant. Construction of unit 3 started in February 2024, with unit 4 beginning in September. The inner steel safety dome for unit 3's containment building was installed in early February 2026. The Zhangzhou plant is planned to eventually house six Hualong One units, which are projected to generate over 60 billion kilowatt-hours of clean energy annually upon full completion.

Zhaoyuan Plant Developments

China General Nuclear (CGN) reported that the first phase of the Zhaoyuan plant, comprising units 1 and 2, has entered its peak civil construction period. Concrete pouring for the inner five layers and outer one layer of the reactor building for Zhaoyuan unit 1 has been completed, with internal wall panel construction progressing. For unit 2, the first concrete pour for the nuclear island, conventional island, and cooling tower has been achieved. Offshore engineering and the construction of onshore water intake and drainage pipelines are also advancing.

The Ministry of Ecology and Environment formally accepted the environmental impact assessment documents for the Zhaoyuan plant's site selection in November 2022. Construction of Phase I was approved by China's State Council in August 2024. First concrete for unit 1 was poured in November 2025, and for unit 2 on September 5, 2026. The Zhaoyuan plant, with a total investment of approximately CNY120 billion (USD16.9 billion), is designed to house six Hualong One units. Each unit is expected to begin power generation 50-60 months after construction commences. The plant is projected to have a total installed capacity of 7.2 GWe and generate 50 TWh of electricity annually.

The Zhaoyuan plant project introduces the first application of secondary circulation large-scale seawater cooling systems at a nuclear power plant in China. Each unit will feature a 203-meter-high natural draft cooling tower with a 16,800 square meter water-spraying area, shifting the conventional island's cooling source from the ocean to the atmosphere.

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DOE Offers Conditional Loan for Vistra Reactor Upgrades

The Department of Energy (DOE) has announced a conditional loan commitment to Vistra for planned investments at its Beaver Valley plant in Pennsylvania and its Davis-Besse and Perry plants in Ohio. These projects are designed to increase electricity output from existing nuclear facilities without requiring new transmission infrastructure. The DOE stated that these investments will support the plants' operations for an additional 20 years beyond their current licenses.

The projects are expected to maintain nearly 4 GW of baseload power and add 433 MW of new nuclear capacity. This expansion aims to address increasing electricity demand in Pennsylvania, Ohio, and the broader 13-state PJM Interconnection region. The DOE's Office of Energy Dominance Financing's commitment also includes an option for future financing of potential uprates at Vistra's Comanche Peak nuclear power plant in Texas.

The DOE emphasized that this investment aligns with the Executive Order Reinvigorating the Nuclear Industrial Base, aiming to restore American nuclear leadership. U.S. Secretary of Energy Chris Wright noted that increasing power output from existing nuclear plants will provide more affordable, reliable energy for consumers and businesses. Gregory Beard, Director of the DOE's Office of Energy Dominance Financing, stated that these investments will extend reactor lifespans, boost nuclear generation, and deliver consistent power.

Projected Impact and Supporting Agreements

The investments are projected to create approximately 3,000 project-related jobs in engineering, construction, and planned outage work, while also preserving thousands of existing permanent positions. Vistra must meet specific technical, legal, environmental, and financial conditions before the DOE finalizes financing documents and disburses the loan.

In February, Vistra President and CEO Jim Burke indicated that power purchase agreements (PPAs) with companies such as Amazon Web Services (AWS) and Meta are supporting the company's plans for relicensing and uprating its nuclear plants. However, the primary focus on uprates is anticipated to occur after 2028.

AWS has entered into a 20-year PPA with Vistra for up to 1,200 MW of power from the Comanche Peak plant. Meta has also signed 20-year PPAs covering 2,176 MW of nuclear energy and capacity from the Perry and Davis-Besse plants in Ohio, along with purchasing energy from planned uprates at those two plants and the Beaver Valley plant in Pennsylvania. Burke previously mentioned that Vistra sees opportunities to contract an additional 3.2 GW of nuclear capacity across its Beaver Valley and Comanche Peak sites, including potential upgrades of around 200 MW at Comanche Peak, whose operating licenses were extended in 2024 for an additional 20 years.