S. Korean Consortium Wins $20B Deal to Build Nukes in UAE

A South Korean consortium last week won a $20.4 billion deal to build four nuclear power plants in the United Arab Emirates—beating bids from a French consortium including Areva, GdF Suez, Électricité de France, and Total and a U.S.-Japanese consortium including General Electric and Hitachi.

The consortium that won the first nuclear project awarded by a Gulf nation—and reportedly the first South Korean export of a nuclear plants—includes state-run South Korean utility Korea Electric Power Co. (KEPCO), Hyundai Engineering and Construction Samsung C&T Corp., Doosan Heavy Industries, and U.S. Westinghouse.

According to the deal, the KEPCO-led consortium will design, build, and help operate the four plants from 2017 to 2020. Emirates Nuclear Energy and KEPCO plan to set up a joint venture to operate the plants, and the two companies will explore other ventures such as sourcing fuel supply. KEPCO will supply fuel for the first three years.

The group is expected to earn $20 billion over 60 years for operating the plants. An analyst told Bloomberg that Doosan Heavy, as a major supplier, stands to gain the most from the project. The deal is also expected to lead to more orders from around the world.

KEPCO is already reportedly in talks with Turkey for the export of two APR1400 light-water reactors to Black Sea areas, according to Reuters. Advanced power reactors (APRs) are 1,400-MW pressurized light-water type power reactors and reportedly the same as will be built in the UAE.

KEPCO is also soon expecting a tender from the Ukraine to build more than one nuclear power reactor there. At the same time, it has its sights set on China and Jordan, Reuters reported. In the medium term, the country could export nuclear reactors to India, South Africa, and Indonesia.

Sources: KEPCO, Reuters, Bloomberg