SUMMARY
China has begun construction of the second reactor at the Zhaoyuan nuclear power project in Shandong Province, marking the start of the first phase of a six-unit nuclear station designed around Hualong One reactors with cooling towers. The project introduces a different cooling configuration for Hualong One, using a large natural-draft cooling tower to move heat from the conventional cooling system into the atmosphere instead of relying primarily on direct seawater cooling. The full six-unit project is planned to have 7.2 gigawatts of capacity and is expected to produce about 50 billion kilowatt-hours of electricity annually.
CHINA EXPANDS ITS HUALONG ONE NUCLEAR PROGRAM — China has taken another major step in expanding its domestically developed nuclear technology, with construction beginning on Unit 2 of the Zhaoyuan nuclear power project in Shandong Province.
The latest construction milestone means the first phase of the project, consisting of two reactors, is now underway.
What makes the project particularly significant is not simply the reactor technology.
The Zhaoyuan plant is designed to use large cooling towers, making it the first Hualong One nuclear power project to incorporate this type of cooling arrangement.
The project is being developed by China General Nuclear Power Corporation, or CGN, through its Shandong Zhaoyuan Nuclear Power Company.
UNIT 2 MARKS THE START OF THE NEXT STAGE
Construction of Unit 1 began in November 2025, when the first concrete was poured for the nuclear island.
On September 5, 2026, construction of Unit 2 reached its own major milestone when workers began pouring concrete for the reactor building's foundation.
The concrete pour involves approximately 8,800 cubic metres of material and is expected to continue for about 60 hours.
The foundation itself is a massive cylindrical structure with a radius of 27 metres and a height of 3.7 metres.
Such work is part of the early civil construction required before the reactor's major nuclear systems can be installed.
WHAT IS HUALONG ONE?
Hualong One, also known as HPR1000, is China's domestically developed Generation III pressurized-water reactor technology.
It was developed through the integration and evolution of Chinese nuclear reactor technologies and is now being deployed across multiple nuclear power projects.
China has increasingly relied on Hualong One as it expands nuclear generation while attempting to reduce dependence on imported reactor designs.
The technology has also become part of China's effort to compete in the international nuclear-power market.
Several Hualong One reactors are already operating or under construction in China, while the technology has also been selected for projects outside the country.
THE COOLING TOWER IS THE BIG DIFFERENCE
The most distinctive feature of Zhaoyuan is its cooling system.
Each reactor is planned to have a natural-draft cooling tower approximately 203 metres tall.
The cooling tower has a spray area of about 16,800 square metres.
Instead of relying primarily on direct seawater cooling, the system transfers heat from the conventional part of the nuclear plant to the atmosphere.
That means the project can recycle cooling water within the system rather than continuously using large volumes of seawater as the main heat sink.
According to CGN, the arrangement can reduce pumping requirements and energy consumption while lowering the amount of cooling-water drift.
WHY WOULD A COASTAL NUCLEAR PLANT NEED COOLING TOWERS?
Most coastal nuclear power plants can take advantage of nearby seawater as a heat sink.
That is relatively straightforward because nuclear reactors generate enormous quantities of waste heat that must ultimately be transferred away from the plant.
But relying directly on seawater can impose restrictions on where a nuclear facility can be located.
The Zhaoyuan project is several kilometres inland from Laizhou Bay.
Its cooling-tower design therefore gives the project a different way to reject heat.
That could potentially make future nuclear facilities less dependent on being located immediately beside large bodies of seawater.
A TWO-LAYER COOLING APPROACH
The project does not depend on just one cooling system.
CGN says Zhaoyuan will use a combination of natural-draft and mechanical-draft cooling technologies.
The large natural-draft tower handles heat rejection from the conventional part of the plant, while a nuclear-grade mechanical-draft cooling tower provides an additional layer of protection for the nuclear island.
The mechanical system includes a large water reserve.
According to CGN, that reserve could allow the reactor's cooling system to continue operating for at least 30 days without replenishment under specified conditions.
The natural-draft cooling tower also contains a water reserve that can provide a temporary buffer if external water supplies are interrupted.
These systems are designed to provide additional resilience rather than simply increase efficiency.
THE PROJECT WILL HAVE SIX REACTORS
Zhaoyuan is planned as a six-unit nuclear power base.
All six reactors are expected to use Hualong One technology.
The combined installed capacity is planned at approximately 7.2 gigawatts.
That would make the completed project one of the major nuclear power bases in the region.
The first phase consists of Units 1 and 2.
Additional units are planned as later phases subject to the necessary approvals and construction schedules.
HOW MUCH ELECTRICITY COULD IT PRODUCE?
When all six units are operating, the project is expected to generate approximately 50 billion kilowatt-hours of electricity each year.
CGN estimates that this would be enough to meet the annual electricity needs of around five million people.
The number illustrates the enormous scale of nuclear power plants.
A single large nuclear site can produce electricity continuously for decades, providing a substantial amount of power without directly burning fossil fuels during generation.
CHINA EXPECTS LARGE CARBON BENEFITS
CGN estimates that the completed project could reduce standard coal consumption by roughly 15 million tonnes annually.
The company also estimates an annual reduction of about 46 million tonnes of carbon dioxide emissions.
Those figures are estimates based on what the nuclear generation would replace in the power system.
The actual emissions benefit will depend on which sources of electricity the nuclear generation displaces over time.
Nevertheless, the project demonstrates why China sees nuclear power as an important component of its long-term low-carbon energy strategy.
NUCLEAR POWER IS BECOMING MORE IMPORTANT TO CHINA
China has been rapidly expanding its nuclear power industry.
The country is simultaneously developing renewable energy, coal generation, grid infrastructure, energy storage and nuclear power to meet enormous electricity demand.
Nuclear power has a particular advantage in this mix because reactors can provide large amounts of electricity continuously, unlike solar and wind resources whose output varies with weather and time of day.
China has also built a substantial domestic supply chain around nuclear technology.
That includes reactor design, construction, engineering, equipment manufacturing and other parts of the nuclear industry.
THE PROJECT IS ALSO ABOUT ENERGY SECURITY
China's interest in nuclear power is not only about reducing carbon emissions.
Energy security is another major consideration.
A nuclear reactor can operate for long periods while using relatively small quantities of fuel compared with fossil-fuel power stations.
That gives nuclear power a strategic role in reducing exposure to fluctuations in coal, oil and gas markets.
For an economy as large as China's, reliable electricity supplies are essential for industrial production, transportation, technology and households.
WHY THE COOLING TECHNOLOGY MATTERS
The Zhaoyuan cooling design could have implications beyond this single project.
Traditional coastal nuclear plants can rely heavily on direct seawater cooling, but that model limits site selection.
By using cooling towers, nuclear developers have another option.
The technology could make certain inland or near-coastal locations more practical for nuclear development, although every location would still need to meet strict safety, water and environmental requirements.
CGN describes the project as providing new experience for the future development and siting of Chinese nuclear facilities.
THE WATER QUESTION
Nuclear power plants require reliable cooling.
That makes water availability a major consideration when selecting a site.
Cooling towers can reduce dependence on continuous direct withdrawal of large quantities of water, but they do not eliminate water consumption.
Water is still lost through evaporation and other processes and must be managed carefully.
The advantage is that the cooling system can recycle much of the water within the plant rather than depending on a continuous flow of seawater through the system.
WHY SHANDONG?
Shandong is one of China's major economic and industrial provinces.
It has large electricity demand from manufacturing, industry, transportation and urban centers.
The Zhaoyuan project is therefore being developed as part of a broader effort to strengthen the province's clean-energy infrastructure.
The site is also being integrated into Shandong's wider clean-heating network.
That creates possibilities for using nuclear energy for more than electricity generation.
NUCLEAR HEATING COULD BE PART OF THE PROJECT
CGN says the project is intended to support pilot applications involving nuclear heating and industrial steam.
This reflects a broader trend in nuclear energy: using reactors to provide heat directly rather than converting all of the reactor's energy into electricity.
Industrial facilities require large amounts of heat for manufacturing processes.
If nuclear energy can provide that heat reliably and safely, it could potentially reduce the amount of fossil fuel required by some industrial operations.
CHINA IS BUILDING NUCLEAR POWER AT SCALE
Zhaoyuan is just one part of China's much larger nuclear expansion.
The country has approved and begun construction on numerous reactors as it seeks to increase the role of nuclear energy in its electricity system.
China's nuclear industry has increasingly shifted toward standardized reactor designs, large-scale construction and domestic supply chains.
That approach is intended to reduce construction times, control costs and accumulate experience from one project to the next.
Hualong One is central to that strategy.
THE HUALONG ONE FLEET IS GROWING
Other Hualong One projects are already producing electricity.
In April 2026, for example, Unit 1 of the San'ao nuclear power project in Zhejiang entered commercial operation. It became another major milestone for China's domestically designed reactor technology.
Other Hualong One units are also progressing through construction, commissioning and operation at different sites across China.
This growing fleet gives Chinese engineers more operational and construction experience with the technology.
CHINA ALSO WANTS TO EXPORT THE TECHNOLOGY
Hualong One is not designed only for China's domestic market.
China has promoted the reactor internationally as part of its broader nuclear technology industry.
Having a large domestic fleet can strengthen that export proposition because potential customers can examine operating reactors rather than relying entirely on theoretical designs.
The expansion of Hualong One inside China therefore has implications for the global nuclear market as well.
THE PROJECT COSTS BILLIONS
The Zhaoyuan nuclear power project is expected to involve total investment of approximately 120 billion yuan, equivalent to roughly $17 billion at recent exchange rates.
That figure covers the planned six-unit development rather than simply the first reactor.
Nuclear projects require enormous upfront investment, but their economic model is based on producing electricity over a very long operating life.
That makes construction financing, project management and schedule control extremely important.
SAFETY REMAINS THE CENTRAL ISSUE
Large-scale nuclear construction inevitably brings intense attention to safety.
The cooling systems at Zhaoyuan are therefore not simply an engineering novelty.
They are also part of the project's approach to maintaining reliable heat removal under abnormal conditions.
According to CGN, the combination of cooling systems provides multiple layers of protection.
As with every nuclear project, however, actual safety depends on the complete system: reactor design, construction quality, operating procedures, emergency systems, regulation and the competence of personnel.
WHAT MAKES ZHAOYUAN DIFFERENT?
The significance of Zhaoyuan is therefore not that China has invented an entirely new nuclear reactor.
It has not.
The reactor is another Hualong One design.
The innovation is in how the plant's cooling system has been adapted.
By combining Hualong One with large natural-draft and mechanical-draft cooling systems, China is testing a configuration that could broaden where the reactor technology can be deployed.
That could become increasingly important as China searches for suitable locations for future nuclear facilities.
THE BIGGER ENERGY RACE
China's nuclear expansion is taking place alongside an enormous buildout of solar and wind power.
The country is trying to increase electricity generation while reducing the carbon intensity of its energy system.
At the same time, electricity demand is being pushed higher by electric vehicles, industrial production, data centres, artificial intelligence and other technologies.
This creates a difficult infrastructure challenge.
China needs more generation, stronger transmission networks and greater flexibility across the power system.
Nuclear power is one part of that equation.
WHAT HAPPENS NEXT?
The immediate focus will be completing the first phase of Zhaoyuan, consisting of Units 1 and 2.
Construction will progress through the installation of major nuclear and conventional systems, testing and eventual commissioning.
Each unit is expected to require roughly four to five years from the beginning of construction to commercial operation, depending on project progress and regulatory milestones.
The remaining planned units would then expand the site into a six-reactor nuclear power base.
CONCLUSION
China's Zhaoyuan nuclear power project represents more than another reactor under construction.
It is a test of how China's Hualong One technology can be adapted to a new cooling configuration and potentially a wider range of locations.
The six-unit project is planned to provide approximately 7.2 gigawatts of nuclear capacity and around 50 billion kilowatt-hours of electricity annually once fully completed.
Its 203-metre cooling towers are designed to shift much of the conventional cooling system's heat rejection from direct seawater cooling to the atmosphere, while additional mechanical cooling equipment provides another layer of resilience.
The project also illustrates China's broader nuclear strategy: develop domestic reactor technology, build it repeatedly at scale, strengthen the country's nuclear supply chain and use the resulting experience to support a larger low-carbon energy system.
For Shandong, the project could provide a major source of reliable electricity and potentially support nuclear heating and industrial steam.
For China's nuclear industry, it offers another opportunity to demonstrate that Hualong One can be deployed with different cooling arrangements.
And for the global nuclear sector, Zhaoyuan provides another indication that China intends to remain one of the world's most aggressive builders of new nuclear power capacity.
Daily Touch Insights
