Construction of China’s first high temperature gas-cooled reactor has begun at Rongcheng, in East China's Shandong Province.

China Huaneng Group signed an agreement with China Nuclear Engineering & Construction Corp (CNECC) and Tsinghua University to set up a new company for the operation of the Shidaowan plant.

The 200 MW facility is expected to cost some yuan 3 billion ($384 million), local media reports.

China Huaneng will fund 47.5% of the investment, CNECC 32.5% and Tsinghua University, which built China’s first 10 MW high temperature gas-cooled research reactor, with 20%.

Globally, there are currently five high temperature gas-cooled reactors, and two such power plants.

The reports follow news that China National Nuclear plans to spend yuan 50 billion ($6.4 billion), to build four 1,000 MW nuclear units at Heyuan in Guangdong Province.

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