Electrical equipment of the floating nuclear power plant operates in a long-term vibration environment. Ground faults occur frequently and are often accompanied by arc, a reliable arc suppression algorithm for the generator stator winding is necessary. In this paper, an active arc suppression method is proposed by connecting a controllable voltage source to the generator neutral point. Through regulating the neutral point voltage to be equal in amplitude and opposite in phase to the fault potential, the fault point voltage can be clamped to a low level to achieve arc suppression. Since the generator's phase potential contains certain harmonic components, the controllable voltage source includes fundamental and third-order harmonic components. To accurately calculate the output voltage, online calculation methods for the fault location, fault potential and grounding capacitance are proposed. The accuracy of the fault location method is verified by simulation and dynamic test. And simulation results based on PSCAD/EMTDC software show that the proposed method can achieve effective arc suppression at different ground fault conditions.