China Moves to Edge Out Russia in Kazakh Nuclear Power Plant Deal

Photo: Rosatom.ru, photo editor: Dastan Shanay

China Moves to Edge Out Russia in Kazakh Nuclear Power Plant Deal

The competition to construct Kazakhstan’s first nuclear power plant is intensifying. While Russia’s state nuclear agency Rosatom has long been seen as the frontrunner for the contract, China National Nuclear Corporation (CNNC) is emerging as a strong contender, potentially challenging Rosatom’s lead in the final stages, The Caspian Post reports citing Eurasianet.

The head of China’s National Nuclear Safety Administration Dong Baotong made a push to secure the deal for CNNC during talks in Astana with the head of the Kazakh Atomic Energy Agency (KAEA) Almasadam Satkaliev, the Kursiv news outlet reported May 26, citing an agency statement. In addition to building the plant, China is also making a strong pitch to handle the nuclear fuel cycle and “the strengthening of scientific and technical infrastructure,” according to the statement.

The Chinese bid is receiving “special attention” from Kazakh officials. Cost differential appears to be Beijing’s biggest advantage. CNNC has estimated it can build two HPR-1000 reactors, envisioned as generating a combined 2.4 Gigawatts of electricity annually, for roughly $5.5 billion.

Kazakh authorities, meanwhile, have projected the cost of other reactor designs from Rosatom, as well as from firms from South Korea and France, as ranging upwards of $12-15 billion. First Deputy Prime Minister Roman Sklyar noted recently that the cost of materials and services are continuing to rise.

Speaking to journalists in Astana on May 28, Kazakh Deputy Foreign Minister Roman Vassilenko indicated that Astana’s preference is for a consortium of countries to be involved in the first nuclear power plant’s operations. He also emphasized that President Kassym-Jomart Tokayev has envisioned the construction of a cluster of nuclear plants.

“There could be different types of consortia building different types of plants” over time, Vassilenko said.

Kazakhstan was originally expected to award the construction contract in late 2022, but the deadline has been repeatedly pushed back. According to the Kursiv report, a decision is now planned for the end of June. Vassilenko confirmed no decision has been made so far.

A nationwide referendum in October 2024 authorized the construction of nuclear power plants. The site for the country’s first nuclear facility has already been selected along the shore of Lake Balkhash in the Zhambyl District, roughly 300 miles northeast of the country’s commercial hub, Almaty.

Nuclear power plants are needed to “help prevent energy shortages in several regions, reduce dependence on imports, and stabilize electricity prices,” according to a government statement. In addition, officials have cast nuclear power as a “green energy” solution that can play “a key role in achieving carbon neutrality by 2060, aligning with Kazakhstan’s international commitments.”

The last reported engagement by Russian nuclear energy officials with their Kazakh counterparts occurred in late January. In addition to Baotong’s visit May 26, President Tokayev and other Kazakh officials met with CNNC chief Shen Yanfeng in March.

Heightening speculation that Kazakh authorities may prefer the Chinese bid, the German outlet Deutsche Welle reported that in mid-December, Astana pressured Rosatom to sell its interests in three uranium mining concerns to Chinese entities. DW also quoted a Kazakh economist, Almas Chukin, as saying Kazakhstan may have wanted Rosatom to divest “because the presence of Rosatom in the [mining consortium] makes the asset toxic and limits opportunities” due to the fallout from Russia’s ongoing military action in Ukraine.

Kazakh officials insist the tender decision-making process is considering not just cost, but also “technological reliability and environmental safety.”

The KAEA’s statement announced the formation of a Supervision and Control Committee, which will be responsible for monitoring plant operations and ensuring “the implementation of international standards and best practices,” Kursiv cited Satkaliev as saying. Kazakh officials are particularly interested in “studying the Chinese experience in ensuring nuclear and water-ecological safety at all stages” of the nuclear plant’s construction and operations, the KAEA statement added.

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The competition to construct Kazakhstan’s first nuclear power plant is intensifying. While Russia’s state nuclear agency Rosatom has long been seen as the frontrunner for the contract, China National Nuclear Corporation (CNNC) is emerging as a strong contender, potentially challenging Rosatom’s lead in the final stages, The Caspian Post reports citing Eurasianet.