A joint venture company for construction of a new nuclear power project was inaugurated Thursday in Fuzhou City, east China's Fujian Province, symbolizing the start of preparation for the nuclear project.

The project, named Fuqing nuclear power station, is a joint venture between two major Chinese energy companies -- the China National Nuclear Corporation (CNNC) and the China Huadian Corporation.

CNNC holds 51 percent of the stake while Huadian Fujian Power Generation Co. Ltd., the local subsidiary of Huadian, holds 49 percent.

The station will house six generating units, each of 1 gigawat.

The hydrological and geological conditions, transmission distance and surrounding environment were suitable for a nuclear plant, said a CNNC official.

The new project was expected to supply power for economic growth west to the coast, said the official.

Huadian, one of China's five major state-owned electricity producers,signed a strategic cooperation agreement with CNNC, the country's leading nuclear power producer.

The newly established company will take charge of the development, construction and operation of the Fuqing nuclear power project.

The company is still awaiting approval of feasibility studies and site examinations before starting construction, said the CNNC official.

(For more biz stories, please visit Industry Updates)