Nuclear Energy’s Expanding Role in China – From Power Generation to Comprehensive Utilization

For decades, nuclear power meant one thing: electricity generation. But in China, that’s changing fast. The country is increasingly treating nuclear power plants not just as power stations, but as multi‑purpose energy hubs that can supply heat, industrial steam, and even hydrogen.

This shift is driven by two powerful forces: the need to decarbonize China’s industrial sector, and the growing recognition that nuclear energy’s value extends far beyond the grid. As of 2026, China is already a global leader in nuclear heating and industrial steam supply — and the pipeline of new projects suggests this is just the beginning.

For overseas businesses — whether in petrochemicals, district heating, hydrogen, or equipment manufacturing — this represents a significant new frontier. This article maps out where China’s nuclear comprehensive utilization stands today, where it’s heading, and what it means for international partners.

1. Nuclear District Heating: Scaling Up, City by City Heating

China’s nuclear heating journey began in 2019 with the “Nuanhe No. 1” (暖核一号) project at the Haiyang nuclear plant in Shandong province — the country’s first commercial nuclear district heating demonstration project.

By March 2026, the project had completed its seventh heating season, supplying 13.5 million square metres of heating to 400,000 residents in Haiyang and Rushan across 127 days. The season delivered 5.41 million GJ of clean heat, equivalent to saving 490,000 tons of coal and reducing CO₂ emissions by 890,000 tons.

What’s particularly notable is the geographic expansion. In April 2026, the “Nuanhe No. 1” (Rongcheng) project completed its first heating season, covering 6.75 million square metres and serving 300,000 residents in Rongcheng. This made Rongcheng the third city in China to achieve large‑scale nuclear heating.

The long‑term vision is even larger. With the commissioning of additional units, “Nuanhe No. 1” is expected to supply heating to Qingdao in the near future, with a long‑term heating capacity of 200 million square metres.

What makes this model work? It’s a public‑private hybrid: a commercial consortium of “nuclear plant + government platform + long‑distance pipeline company + heating company” that aligns incentives across stakeholders. This is a model that could be replicated in other regions — and potentially in other countries.

2. Nuclear Industrial Steam: Powering Petrochemicals Steam

District heating is one thing. But industrial steam — the high‑temperature, high‑pressure steam that drives chemical processes — is where nuclear energy’s potential for decarbonizing heavy industry really shines.

🔹 “Heqi No. 1” (和气一号) — The Pioneer

In June 2024, China launched its first industrial‑scale nuclear steam supply project: “Heqi No. 1,” based at the Tianwan nuclear plant in Jiangsu province.

By its first anniversary in June 2025, the project had supplied over 3.17 million tons of clean steam to the Lianyungang petrochemical industrial base. It operates at a steady rate of 400 tons per hour at 260°C. The environmental impact is substantial: reducing standard coal consumption by 264,200 tons and CO₂ emissions by 706,600 tons annually.

The project also saved the petrochemical base 462,300 tons of carbon emission allowances in its first year — a tangible economic benefit in China’s carbon trading system.

China’s 2024‑2025 Energy Conservation and Carbon Reduction Action Plan explicitly encourages large petrochemical parks to explore nuclear steam supply. According to industry planning, over 30% of China’s nuclear plants will offer industrial steam by 2030, replacing more than 10 million tons of coal annually.

🔹 Hainan: Extending the Model

In November 2025, Hainan Nuclear Power’s steam supply project began delivering industrial steam to enterprises in the CNNC Industrial Cooperation Demonstration Zone. This marks the expansion of nuclear industrial steam beyond Jiangsu — a sign that the model is becoming replicable.

3. The Game Changer: Xuwei — World’s First PWR+HTGR Coupled Project Breakthrough

If “Heqi No. 1” was the proof of concept, the Xuwei Nuclear Heating and Power Plant in Lianyungang is the leap forward.

On January 16, 2026, China poured the first concrete for Xuwei Unit 1’s nuclear island — the world’s first large‑scale nuclear‑petrochemical integration project and the first project to couple a pressurized water reactor (PWR) with a high‑temperature gas‑cooled reactor (HTGR).

This is not a minor innovation. The project combines two Hualong One (third‑generation) units with one HTGR (fourth‑generation) unit in its first phase. In operation, steam from the Hualong One produces saturated steam, which is then reheated by the HTGR’s main steam.

The project is described by CNNC as the “world’s first dual‑coupling demonstration project combining a third‑generation nuclear PWR and a fourth‑generation nuclear HTGR.” It is also the first nuclear project globally to adopt an integrated EPC model for the entire plant.

As of July 2026, the broader nuclear‑chemical coupling base in Lianyungang — which includes both the Xuwei plant and the “Heqi No. 1” project — is expected to supply over 35 million tons of industrial steam annually upon full completion. Its outcomes are intended to be replicated in industrial clusters across the Yangtze River Delta and the Guangdong‑Hong Kong‑Macao Greater Bay Area.

CNNC’s chief design engineer Bai Wei told the Global Times that the coupling design, supported by digital simulation, is one of the project’s key technical achievements. The project has conducted over 70 research topics, with more than 40 technological innovations already applied.

4. Future Horizons: Hydrogen, Desalination, and Beyond Frontier

Heating and industrial steam are just the beginning. China is actively exploring several other applications for nuclear energy beyond the grid.

The 2024‑2025 Energy Conservation and Carbon Reduction Action Plan explicitly encourages large petrochemical parks to explore nuclear steam supply. The 2030 Carbon Peaking Action Plan also supports nuclear comprehensive utilization.

5. What This Means for Overseas Businesses Implications

China’s pivot toward nuclear comprehensive utilization creates significant opportunities for international firms across several sectors:

The nuclear comprehensive utilisation sector is attracting a mix of state‑owned giants and private firms. In 2025, all five newly approved nuclear projects attracted private capital participation, with private firms holding up to 20% equity in some cases. This means the landscape is becoming more diverse — and more complex to navigate.

At ChinaBizInsight, we help international clients verify Chinese companies, retrieve official registration documents, and conduct comprehensive due diligence — whether you’re evaluating a nuclear equipment supplier, a petrochemical partner, or a potential joint venture.

Final Takeaway

China is no longer just building nuclear reactors to generate electricity — it’s building integrated energy hubs that supply heat, steam, and eventually hydrogen and desalinated water to industrial and residential customers.

This shift is creating a new industrial ecosystem that connects nuclear power with petrochemicals, district heating, and other energy‑intensive sectors. For international businesses, this represents a new frontier — but one that requires careful due diligence and a clear understanding of China’s regulatory and commercial landscape.