Korea Gains as Nuclear-Plant Bidder

WSJ On-Line ^ | NOVEMBER 16, 2009 | DAVID GAUTHIER-VILLARS, MARGARET COKER And EVAN RAMSTAD

[Pontiac]

South Korea is emerging as an unexpected contender in the global race to build nuclear-power plants, turning up as a finalist for one of the industry's most-coveted projects.

The Korean bid has surprised more-established competitors—including industry leader Areva SA of France—as well as officials in the United Arab Emirates, who are examining bids for a contract that could be worth as much as $40 billion to build and run the Arab world's first nuclear-power plants. U.A.E. officials could award the contract as early as the next few weeks.

Early in the bidding process, many observers expected a two-horse race between a French consortium including Areva, GdF Suez SA, Electricité de France and Total SA and a U.S.-Japanese consortium including General Electric Co. and Hitachi Ltd.

But the Korean bid has emerged as "far more competitive than anyone first thought," according to a person familiar with the situation. The bidding group is led by Korea Electric Power Co., construction units of the Samsung and Hyundai business groups, and Westinghouse, a unit of Japan's Toshiba Corp.

Indeed, in an effort to bridge the cost gap with the cheaper South Korean bid, the French group revised its own offer and proposed to build fewer reactors than it initially planned, according to people familiar with the matter.

But, with more than half of the world's 439 nuclear reactors expected to be retired by 2030, and nuclear power plants gaining appeal because they don't emit greenhouse gases, demand for nuclear technology is expected to grow sharply, potentially offering new players room to make their mark internationally.

If the South Korean team wins the project, it would mark the first time the country's nuclear industry has exported its know-how.

[Pontiac]

More evidence of that the US is becoming irrelevant in heavy industry. Not a single US bidder mentioned. GE once the largest builder of nuclear power plants merged their nuclear subsidiary with Hitachi a few years ago. Westinghouse once the second largest builder of nukes earlier sold out to Toshiba.

The US was the pioneer of nuclear power and is now merely a bit player. Politics and fear have weakened the US to the point of irrelevance.

[rightly_dividing]

You are so very right. One thing that bothered me was this:

.....build and run the Arab world's first nuclear-power plants.

I know that UAE is not a threatening power currently, but give them nucular power and they may "assist" their Muslim brothers who would love to have nukes.

[Pontiac]

I doubt she has much support on the morality part anymore. She seems like she wanted to be famous. she will be but not how she expected.

If you can read the whole article you will see that they will be buying their fuel from established commercial enrichment countries under the watchful eyes of the International Atomic Energy Agency.

It is no guarantee but unless you have enrichment technology it is pretty tough to get into the bomb business.

Yes you could get Plutonium from spent fuel but that is a dangerous and dirty business and commercial nuclear power plants are inefficient at producing Plutonium.