Thailand's RATCH joins Chinese firms in $6b nuke power project

RATCH will inject THB7.5b in the project.

Ratchaburi Electricity Generating Holding joined venture with China General Nuclear Power Corporation and Guangxi Investment Group Company on Fangchenggang Nuclear Power Project Phase II (Fangchenggang NPP Phase II), in China. 

All three partners signed the equity joint venture contract for establishing Guangxi Fangchenggang Nuclear Power (II) Co., Ltd. that will develop, carry out the construction, and operate Fangchenggang NPP Phase II. RATCH’s investment was conducted through RATCH China Power Limited, a subsidiary, with 10% shareholding. Meanwhile, CGN and GIG holds 51% and 39% respectively.

Fangchenggang NPP Phase II is valued around THB200 billion (or CNY40 billion). RATCH will inject capital of THB7.5 billion in the project regarding to its share portion and dividend income expects to be recorded in 2021, under the 30-year power purchase contract.

Fangchenggang Nuclear Power Project is regarded as a 6,000-MW mega project, which is divided into three phases for development. The Phase Icomprises of unit 1 and 2 which are already constructed and operated. The Phase II that RATCH partially involved comprises of unit 3 and 4, with 1,180-MW capacity each. The construction of Unit 3 has begun in December 2015 and expected to complete within 5 years. Importantly, the unit 3 of Phase II will be the first Chinese nuclear reactor installed with China’s innovated HRP1000 technology which is the country’s third nuclear reactor generation developed further from the widely used pressurized water reactor (PWR) technology. The HPR1000 is regarded as the world’s most advanced active and passive safety systems.

Fangchenggang Nuclear Power Project Phase II is located on Guangxi Autonomous Region, southern China and 45-kilometer far from Vietnam border. The electricity from this power plant, with 60-year plant life, will be distributed to the domestic off-taker under power purchase contract.

In consequences of the transaction, RATCH’s equity capacity increases by 236 megawatts. The clean energy capacity including hydroelectric power, wind power, solar power and nuclear power will rise to 720.79 megawatts and the total capacity from fossil-based and clean energy surges to 6,814.12 megawatts.