South Korea looks to export 80 reactors

SEOUL, SOUTH KOREA - In a report to the country's president, the South Korean Ministry of Knowledge Economy has stated that the nuclear power equipment sector is set to become the most profitable market for the country after automobiles, semiconductors and shipbuilding.

The country is reportedly targeting an export level of 80 nuclear reactors, worth $400 billion, by 2030.

South Korea plans to become self-sufficient in nuclear technology by 2012, and the planned export figures would give it a 20% share of the global market. This would make the country a nuclear supplier equal to Russia, which is currently the world's third-largest supplier, behind the United States and the global leader France.

In order to ensure that locally designed reactors are more efficient and less costly, the government, with private enterprise, intends to invest $356 million in design upgrades. A total of 2,800 nuclear experts will be trained by 2011 to meet both domestic and overseas projects, along with a significant boost in research and development personnel.

As part of the plans for nuclear self-sufficiency, South Korea is also aiming to obtain stakes in overseas mines to obtain stable supplies of nuclear fuel. Currently the country can supply 6.7% of its demand for uranium-based fuel, but plans to increase this to 25% by 2016 and to 50% by 2030.

The ministry also indicated an initial plan to finalize deals for the overseas construction of 10 nuclear reactors by 2012. This plan includes the recent order obtained by the Korean Electric Power Corporation (KEPCO) for the supply of four reactors to the United Arab Emirates.

The United Arab Emirates order was the first export nuclear reactor order for South Korea and consisted of four South Korea-developed APR1400 1,400-MW reactors worth a total of $20 billion. KEPCO will be responsible for the main supply, with other South Korean firms, such as the KEPCO subsidiary Korea Hydro and Nuclear Power Company Limited, supplying support for the operation of the reactors. It has been estimated that the order could generate additional business for South Korean companies of up to $20 billion.

The reactors will be located in Sila, about 330 kilometers west of Abu Dhabi. The first reactor will be commissioned in 2017, and the remainder by 2020. KEPCO won the order, the largest ever contracted between South Korea and United Arab Emirates, against fierce competition from French nuclear power company Areva SA and a consortium composed of the General Electric Company and Hitachi Limited.

Besides the export of nuclear reactors, South Korea also plans to gain entry into the global market for reactor operations, repair and maintenance, which is estimated to be worth $78 billion. According to the ministry, there is a rapidly growing market for overhauls to heavy water reactors in order to extend reactors' life cycles.