China will produce only the barge while Russia will take care of the reactor equipment. The first nuclear power plant should be finally assembled at the Sevmash plant in Severodvinsk (in the Arkhangelsk region in northern Russia).

China offered the best conditions for the barge production and in addition it will issue Russia a long-term credit covering the price of the barge. The price tag of the contract with China is $86.5m.

Recently Russia’s Federal Nuclear Energy Agency has made a decision to build a low capacity floating nuclear power plant (FNPP). The plant will be small and will produce roughly 1/150th of the power produced by a standard Russian nuclear power plant. Construction could begin in 2006 if the project finds financing, Mosnews reported.

The mini-station will be located in the White Sea, off the coast of Severodvinsk. It will be moored near the Sevmash plant, which is the main facility of the State Nuclear Shipbuilding Center. The FNPP will be equipped with two power units using KLT-40S reactors. The plant will meet all of Sevmash’s energy requirements for just 5 or 6 cents per kilowatt. If necessary, the plant will also be able to supply heat and desalinate seawater. The reactors will be loaded with nuclear fuel once every three years and will have a lifespan of 40 years.