UAE awards $3bn nuclear fuel contracts

A group of international suppliers have been awarded contracts to meet the UAE's nuclear fuel requirements over the first 15 years of operation.

The UAE's nuclear operator, the Emirates Nuclear Energy Corporation (ENEC) said the total of six contracts were valued at about $3bn.

The contracted fuel will enable the Barakah plant to generate up to 450 million MWh for a period of 15 years starting in 2017, when the first nuclear energy unit is scheduled to begin operating.

The deals include the purchase of natural uranium concentrates, uranium conversion and enrichment services and the purchase of enriched uranium, ENEC said in a statement.

ENEC said the enriched uranium will be supplied to KEPCO Nuclear Fuels (KNF), which will manufacture the fuel assemblies for use in the four planned UAE units.

KNF is a member of ENEC's prime contract consortium, led by Korea Electric Power Corporation (KEPCO).

Starting in 2014-2015, US-based ConverDyn will provide conversion services; Canada's Uranium One, Inc will provide natural uranium, UK-based URENCO will provide enrichment services and Rio Tinto will provide natural uranium.

ENEC added that Russia's TENEX will supply uranium concentrates, conversion services and enrichment services which France-based AREVA will provide uranium concentrates, conversion services and enrichment services.

ENEC's CEO Mohamed Al Hammadi said: "The completion of the fuel supply strategy is a key achievement to ENEC's programme and a clear example of how the UAE continues to set the gold standard for implementing a peaceful nuclear energy programme.

"These contracts will provide ENEC with long-term security of supply, high quality fuel and favorable pricing and commercial terms. We are also pleased that this marks the start of long-term commercial relationships with companies that have earned excellent reputations in the industry."

ENEC is planning to build four 1,400MW nuclear energy units at the recently approved site, Barakah, in the Western Region of Abu Dhabi.

In July, ENEC received regulatory approval from both the Environment Agency of Abu Dhabi and the Federal Authority for Nuclear Regulation for the construction of the first two nuclear energy units in Barakah.

Pending further regulatory approvals, the first unit is scheduled to begin delivering electricity to the grid in 2017. The remaining three units are scheduled to come on line in 2018, 2019 and 2020.