State Nuclear Power Technology Corp (SNPTC) and China Huaneng Group have formed a joint venture to build the first localised third-generation nuclear power reactor.
The 1,400MW localised demonstration reactor will be developed in Shidaowan, Rongcheng city, in the eastern province of Shandong.
Work on the reactor will begin in April 2013 and it will commence operation in December 2017, according to Reuters.
In 2006, the Toshiba-owned Westinghouse Electric received a contract to build four AP1000 reactors in the Chinese coastal provinces of Zhejiang and Shandong of which three are under development.
The deal includes a technology transfer agreement, enabling China to craft its own local third-generation nuclear power reactors.
SNPTC was established in 2007 to introduce, absorb and localise AP1000 nuclear power technologies from Westinghouse Electric.
Another 1,700MW reactor is also being planned at the same location.