Landmark nuclear deal clears congressional review
The United Arab Emirates (UAE) has an open road to implement its nuclear energy agreement with the U.S. Reuters reports that the U.S. Congress, as predicted, took no negative action in response to its review of the pact. The deadline for a measure passed quietly late last week.
Newsweek reported the agreement will get special emphasis from the Obama administration because of the example it sets for other countries regarding nonproliferation of weapons grade nuclear materials. The UAE has pledged not to develop capabilities to enrich uranium nor reprocess spent nuclear fuel.
“The Emirates deal sets a precedent for countries that say they want nuclear energy, but not the bomb. Why go to the expensive trouble of enriching uranium if France or the U.S. will do it for you? Nations can still insist on their right to do their own enrichment, but it's becoming much harder to convince the international community that their intentions are peaceful.”
UAE plans massive new nuclear build
Also, at stake, is the expected $40 billion in spending over the next two decades for up to 5 GWe of nuclear reactors. GE-Hitachi and Westinghouse are keenly interested in the deal. The leading consortium bidding on the massive contract is GDF-Suez and Areva. French President Nicholas Sarkozy made a personal visit to the UAE last May to pitch the GDF/Areva bid. A Korean reactor group is also in the mix. A U.S. trade mission is scheduled to travel to the UAE in December.
The UAE has three objectives for its reactors. The first is to swap out use of declining supplies natural gas for water desalinization with nuclear energy. Second, electricity from the reactors will be used to power development of the nation’s aluminum industry. Third, it’s hot over there, and as the nation develops, it’s going to need a lot more air conditioners, plus electricity for office and home use. The UAE is positioned to become a net exporter of electricity to the Kingdom of Saudi Arabia.
There are two reasons a contract award could come by the end of the calendar year. The first is the UAE now has the credibility of a completed agreement with the U.S. on transfer of nuclear technologies including fuel. The second is earlier this month the UAE put in place the policy and organizational infrastructure of their version of a nuclear regulatory body to address key reactor safety issues.
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Idaho Samizdat is a
blog about the political and economic aspects of nuclear energy and nonproliferation issues. It covers the nuclear energy industry globally. Additionally, the blog has regional coverage on uranium mining in the western U.S.
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