China Aggressively Pushes Russia Out of Kazakhstan Nuclear Deal

The race to build Kazakhstan's first nuclear power plant appears to be heating up. Russian energy company Rosatom has long been seen as keen on winning the construction contract, but China National Nuclear Corporation (CNNC) is stepping forward and making a significant step toward beating its competitors, OilPrice reports.

China's National Nuclear Safety Administration chief Dong Baotong made an aggressive attempt to secure a deal for CNNC during talks in Astana with Kazakhstan Atomic Energy Agency (KAEA) chief Almasadam Satkaliyev.

Beijing is making a major bid to build Kazakhstan's first nuclear power plant, offering a significantly lower estimate than other competitors, including Russia's Rosatom, in a bid to edge out the latter.

In addition to building the core facility, China is also making a strong move toward nuclear fuel cycle management and “strengthening scientific andtechnical infrastructure”, offering an almost full cycle of cooperation.

The Chinese bid has attracted “special attention” from Kazakh officials. The cost differential appears to be Beijing’s biggest advantage. CNNC has estimated that it could build two HPR-1000 reactors, which are expected to generate a combined 2,4 gigawatts of electricity per year, for about $5,5 billion.

Meanwhile, Kazakh authorities are projecting the cost of other reactor projects from Rosatom, as well as firms from South Korea and France, to be in the range of more than $12-15 billion. That cost matters to the republic can be seen from statements by officials who note that the cost of materials and services continues to rise, which is a cause for concern.

Kazakhstan is also considering the possibility of creating a consortium of countries to implement its nuclear projects and emphasizes the importance of safety, technological reliability and environmental factors in the decision-making process on the future of the project, which will be decided in June.