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UAE Signs Nuclear Cooperation Agreements with Japan and the U.S.

The United Arab Emirates (UAE), an oil-rich region that is preparing to accommodate a 9% annual growth in power consumption, last week signed separate agreements with the U.S. and Japan for the potential development of nuclear power.

Former U.S. Secretary of State Condoleezza Rice and her UAE counterpart, Foreign Minister Sheikh Abdullah bin Zayed al Nahyan, on Jan. 15 signed a nuclear-cooperation agreement. That pact, one of the Bush administration’s final foreign policy acts, could help the UAE become the first Arab nation to develop a nuclear power industry as early as 2017, officials from the State Department said.

The agreement had been delayed following protests by members of Congress that it could accelerate nuclear proliferation and add volatility in the region. But a compromise was reached after the UAE agreed to conditions that included signing a protocol that would allow intrusive inspections by the UN’s nuclear watchdog, the International Atomic Energy Agency. It has also agreed to import nuclear fuel and not build a uranium enrichment plant that would make it possible to switch from civilian to military use.

“As expressed in the agreement we are signing, the U.A.E. is choosing to pursue nuclear power via the import of nuclear fuel, rather than developing expensive and proliferation-sensitive fuel cycle technologies, such as uranium enrichment and reprocessing,” Rice said at the signing. “U.S. industry is already contributing to the development of a nuclear power program in the U.A.E., and this agreement will facilitate its further involvement. We believe our technology is the best in the world, and we hope that the U.A.E. will give that technology strong consideration.”

On Monday, Japan also signed a cooperation memorandum with the UAE to facilitate work in the following areas: The preparation and planning for a potential nuclear power program while promoting the highest standards of nuclear non-proliferation; safety and security; nuclear security and physical protection; and nuclear safety, radiation protection and emergency response. In an official statement, the UAE said that the agreement would also involve the exchange of personnel and training opportunities, the organizing of seminars and workshops, and the provision of technical assistance and services.

The U.S. and Japanese nuclear cooperation agreements follow memorandum and bilateral agreements with other governments, including the UK (May 2008) and France (January 2008).

In a detailed April 2008 policy document on the evaluation and potential development of nuclear energy, the UAE estimated that by 2020, its power needs will more than double, from the current 15,546 MW to 40,858 MW at peak production capacity. The region imports about 60% of its gas for electricity generation from neighboring Qatar, but with supplies tightening, and with solar and wind energy expected to meet only 4% to 5% of this capacity, the UAE has been forced to consider building nuclear power on a large scale.

According to BusinessWeek, the region is likely to get some 25% of its power from nuclear power—which means building and operating six or more nuclear power plants at a cost of $5 billion each.

The UAE set no timeframe for when the process would begin or which company would handle the responsibility of building the reactors. BusinessWeek speculated that the prospect of orders could trigger “fierce competition” between Westinghouse and AREVA.

Sources: U.S. State Department, Emirates News Agency, BusinessWeek

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