(Yicai) April 1 -- China has approved the CNY70 billion (USD9.7 billion) initial phase of the country’s first industrial-use nuclear power steam supply project, which is intended to provide thermal energy to a petrochemicals plant.

The project, located in the Tianwan nuclear power plant in Jiangsu province, will also use any spare steam to generate electricity to ease tight local power supply, the Ministry of Ecology and Environment said on March 29, without disclosing further details.

Jiangsu lacks hydroelectric resources and its wind power does not produce enough energy and offers a less stable supply. The new nuclear project can address the province's over-reliance on fossil fuels, achieve diversification of energy supply and carbon reduction goals, and create about 1,800 jobs, according to its feasibility report.

The project's first phase, which will cost around CNY70 billion, can cut coal consumption by 7.6 million tons and carbon dioxide emissions by about 20.6 million tons a year. 

The project includes the building of four Hualong One reactors, China's third-generation atomic reactor with a capacity of 1,000 megawatts each, and supporting facilities. It will cost about CNY125.8 billion (USD17.4 billion) in total.

The first phase will have two Hualong One units and facilities and take about 70 months to complete. Environmental protection expenses will likely be in the order of CNY1.7 billion (USD235.2 million).

China National Nuclear Power, a unit of China National Nuclear Corporation, owns 51 percent of the project, while two local investors holding 29 percent and 20 percent each.

Editors: Tang Shihua, Martin Kadiev