The Chinese government provides strong support for the development and commercial use of small modular reactors (SMRs) in order to leverage nuclear energy in clean heating supply, industrial steam supply, seawater desalination, hydrogen production by electrolyzing water with surplus electricity, isotope production and refrigeration. CNNC launched an ACP100 reactor research project in 2010. In April 2016, ACP100 became the world’s first SMR design to have passed IAEA’s Generic Reactor Safety Review (GRSR). On July 18, 2019, CNNC announced the launch of a multi-purpose ACP100 demonstration project in Hainan Province. The project involves a reactor that has a thermal power of 385 MWt, an electric power of 160 MWe, and a volume of 14 m×10 m×10 m, using integrated reactor design, a passive safety system and an improved system for severe accident prevention and mitigation, with safety features reaching the level of Gen III nuclear energy systems. Smaller scale, lower capital cost and shorter construction period make it an attractive option.