BEIJING -- China will soon begin building its first high temperature gas cooled reactor (HTGR) with proprietary intellectual property rights (IPR) in eastern Shandong Province.

China Huaneng Group, China Nuclear Engineering and Construction Corp. and Tsinghua University signed an agreement on Monday to establish a nuclear power company in Shidaowan of Shandong Province.

The company will provide the funds for the HTGR project and build and operate it, according to the agreement.

A total of three billion yuan (375 million U.S. dollars) will be invested in the project, which aims to have a capacity of 200,000 kilowatts. Seventy percent of the technology used in the project will be developed in China.

China Huaneng Group, China Nuclear Engineering and Construction Corp. and Tsinghua University will respectively contribute 47.5 percent, 32.5 percent and 20 percent of the investment.