(Yicai Global) Oct. 25 -- Nuclear power-related stocks rose across the board in China after the government unveiled a policy document on peak carbon dioxide emissions and carbon neutrality, reaffirming that it will actively develop the nuclear power industry.

Nuclear power equipment supplier Dongfang Electric [SHA: 600875] closed up 9.9 percent at CNY17.39 (USD2.70) today, while atomic power station builder and operator China National Nuclear Power [SHA: 601985] gained 5.1 percent to CNY6.80. CGN Power [HKG: 1816] rose 3.7 percent to HKD2.26 (3 US cents).

The broader Shanghai Composite Index edged up 0.8 percent, while the Hang Seng Index ended little changed.

The policy document, released yesterday, reiterated the need for “active, safe and orderly development of nuclear power” to achieve peak carbon dioxide emission and carbon neutrality targets. It also mentioned the need to “actively and steadily promote heating supply with nuclear power waste heat.” That means “clean and highly efficient” nuclear power will enter a new round of development. 

A 1-million kilowatt-class thermal power unit consumes 3 million tons of standard coal besides the fuel needed to transport the coal to the power station. That would be unnecessary in a same-capacity nuclear power unit, leading to an annual reduction of 6 million tons of carbon dioxide emissions and 26,000 tons of sulfur dioxide and nitrogen oxide emissions.

Besides helping to cut emissions, nuclear power generation is more stable than other types of energy supplies. In an extreme scenario where thermal, solar and wind power are restricted “nuclear power plays a crucial role in stabilizing the power grid and dealing with the extreme external conditions,” Zhao Chengkun, vice chair of the China Nuclear Energy Association and former director of the National Nuclear Safety Administration, told Yicai Global in an interview.

Total average use of power-generation gear in the Chinese mainland was 2,560 hours in the first eight months of the year, 112 hours more than in the same period last year, according to data from the National Energy Administration. Average use of nuclear power-generation equipment was 5,219 hours, up 338 hours from a year ago and well above the national average of 2,560 hours.

In comparison, the average use of wind power equipment during the January-August period was just 1,500 hours, only 83 hours more than a year ago.

The policy document also set out carbon reduction targets. By 2025, energy consumption per unit of gross domestic product should be 13.5 percent below that of 2020, with an 18 percent cut in carbon dioxide emissions per unit of GDP and the share of non-fossil energy consumption at about 20 percent.

By 2030, CO2 emissions per unit of GDP should be down over 65 percent from 2005, with the share of non-fossil energy consumption at about 25 percent.

The goal of carbon neutrality should be achieved by 2060, with the share of non-fossil energy consumption at over 80 percent, the document said.

Editors: Tang Shihua, Peter Thomas