United Arab Emirates To Build 4 Nuclear Power Plants

The United Arab Emirates has awarded contracts worth $3 billion to six international companies, including Rio Tinto PLC and France's Areva SA, to supply nuclear fuel for its four planned nuclear reactors, the first civilian power plantsin the Persian Gulf region. Rio Tinto and Canada's Uranium One Inc.  will supply natural uranium, while Areva and Russia's Tenex will provide uranium concentrates, conversion services and enrichment services. The Emirates Nuclear Energy Corporation is the firm building the nuclear plants in the Gulf state. U.S.-based ConverDyn will provide conversion services and U.K.-based Urenco Ltd. will carry out enrichment services.

The contracts, which cover the first 15 years of the reactors' operations, will provide ENEC with long-term security of supply, high-quality fuel and favorable pricing and commercial terms. ENEC has already started the construction of its first reactor.

The U.A.E., the world's third-largest oil exporter, is facing soaring demand for electricity as its economy expands and plans that nuclear energy will eventually meet 25% of its power requirements.
The OPEC member awarded in 2009 a multibillion contract to a consortium led by Korea Electric Power Corporation (KEPCO), to build the four nuclear reactors at Barakah, 300 kilometers west of the capital Abu Dhabi, that will produce 5,600 megawatts of energy.

The first nuclear reactor is due to open in 2017, while the remaining three units are scheduled to come on line in 2018, 2019 and 2020.

The U.A.E. is investing billions of dollars in developing alternate sources of energy as part of plans to diversify away from hydrocarbons. Other regional nations, including Egypt and Saudi Arabia, have also declared in recent years their intent to pursue nuclear energy.

Unlike neighboring Iran, the U.A.E. has committed to not enriching uranium itself or to reprocess spent fuel. U.A.E hasn't yet finished a strategy for managing spent fuel from the reactors, but a national waste strategy document is in the advanced stage of discussions. (WSJ, 8/15/2012)