President and chief executive Kim Joong-kyum told reporters late on Monday that Kepco would begin exclusive talks with the UAE next year to build four nuclear plants to be completed by 2021, in addition to an existing deal for four reactors, aiming to conclude negotiations by the end of next year.
A Kepco deal for an additional four nuclear power plants in the UAE, taking the total to eight, would cement its reach in the Middle East market.
Kim said the state-run utility would start construction on an initial four nuclear power plants on July 1, advancing the start date by four months, pending regulatory approval by June 30, with completion scheduled for 2017-2020.
“As far as I know, the UAE has not held talks with other countries,” Kim said, referring to the prospective deal.
“Our efficiency will increase as we build the first four; we will achieve cost competitiveness if the same type of reactor is chosen ... we can shorten construction time, meaning earlier returns on investment.”
“Kepco has also been in talks with India, Kazakhstan, South Africa, Turkey and Vietnam over possible reactor exports, although any deals are unlikely to be signed this year,” he said.
Oil-exporting UAE awarded the contract for four reactors to a consortium of Korean companies led by Kepco in December 2009. Emirates Nuclear Energy Corp (ENEC) said at the time that the Kepco team would design, build and help operate four 1,400-megawatt nuclear power units, putting the value of construction, commissioning and fuel loads at about $20 billion.
ENEC said last month that it hoped to start building the first plant in the fourth quarter, if regulatory approval was received by the third quarter.
“We are looking into three to four deal candidates, including mines and companies,” Kim said regarding the company’s overseas investment plans this year. He added that Kepco was eyeing steaming coal and uranium assets in the US and South Africa to diversify procurement after almost zero investment last year.
“ENEC is focused on delivering a safe, peaceful nuclear energy program through its Prime Contract with KEPCO. Under the contract, which was signed in 2009, ENEC and KEPCO are working on the design and construction of four APR-1400 reactors to deliver safe, efficient, clean and reliable electricity to the UAE starting in 2017.”
“ENEC does not have any other contract in place, nor has it tendered any other contract for delivery of additional nuclear energy plants other than the four APR 1400 units.”, a spokesperson from ENEC said.
To ensure stable coal and uranium procurement, he said Kepco aimed to set up its first resources procurement and trading joint venture with Germany’s RWE AG this year in either Singapore or South Korea, after selecting RWE as preferred bidder last December.
Kepco fully owns five thermal coal power generating utilities in South Korea, the world’s No.3 coal buyer - Korea East West Power Co, Korea Southern Power Co, Korea South-East Power Co Ltd, Korea Western Power Co Ltd and Korea Midland Power Co.
It also has stakes in Indonesian and Australian coal mines and companies, and uranium mines and companies in Canada, Niger and the United States, according to company data.
South Korea, Asia’s fourth-largest economy, is heavily dependent on energy imports. It has been seeking ways to increase stable commodities and energy procurement as global prices soar. It imports almost all feedstocks for power generation.
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