UAE's Nuclear Power Programme Helps Develop Local Nuclear Supply Chain

By Sheriffah Noor Khamseah Al-Idid Syed Ahmad Idid Sheriffah Noor Khamseah Al-Idid Syed Ahmad Idid, Innovation and Nuclear Advocate, Alumni of Imperial College, University of London speaks of the nuclear energy sector's economic potential. KUALA LUMPUR, Feb 24 (Bernama) -- Nuclear Power plant construction, operation and maintenance (O&M) as well as decommissioning offer a multitude of opportunities for both international and local companies to harness and benefit from. With the current 450 nuclear reactors in operation, 60 under construction and more than one hundred being planned, this offers a significant investment and business opportunity in the construction, manufacturing as well as services related to nuclear. The Nuclear Energy Institute's (NEI) White paper on Nuclear Energy’s Economic Benefit - Current and Future (April 2014) outlined that in view of the increasing number of nuclear power plants under construction across the globe, there will be a surge in demand for materials, components and services for the global nuclear industry. The US Department of Commerce estimates the global market for nuclear products, services and fuels is valued at US$500-US$740 billion over the next 10 years. More recently, the World Nuclear Association’s (WNA’s) World's Nuclear Supply Chain : Outlook 2030 reported that more than half of the US$1.2 trillion investment in nuclear power in the 15 years ending 2030 will be in Asia, with the largest market in China. This report further outlined that the global market for nuclear plant supplies through 2030 amounts to US$30 billion per year which includes supplies for repair and maintenance at existing plants and for ones under construction. Additionally, over US$500 billion will be spent globally on international procurement to support nuclear new build over the next two decades. UAE'S FORAY INTO NUCLEAR United Arab Emirates (UAE) is a good example how the emirates' venture into nuclear energy has helped the country develop a local nuclear supply chain. Mohamed Al Hammadi, CEO of Emirates Nuclear Energy Corporation (ENEC) in his address during the 24th Global Women in Nuclear (Global WIN) Conference, in Abu Dhabi, noted that contracts worth over US$3 billion were awarded to 1400 Emirati companies over the past six years for UAE's first nuclear power plant. This has stimulated the growth of heavy industry in the country, benefiting UAE's economy. The local companies have been awarded contracts through joint collaboration between ENEC, the entity responsible for the construction and operation of the UAE's four APR-1400 nuclear reactors, and the Korea Electric Power Corporation (KEPCO), ENEC's Prime Contractor. The job scope for the Emirati companies covered a range of products and services, including marine dredging, steel supply, metals and cables, housing projects and site construction activities. The Prime Contract for the nuclear power plant is administered in three subcontract area of Nuclear Steam Supply System (NSSS) by KEPCO, Turbine Island by Doosan and General Construction by Hyundai Samsung Joint Venture (HSJV). DEVELOPMENT OF UAE's NUCLEAR ENERGY INDUSTRY SUPPLY CHAIN The International Atomic Energy Agency (IAEA) in its Industrial Involvement Document had listed that for newcomer countries, strong participation by local companies in national nuclear power construction would begin in the area of civil construction. This is evident from the interview of Hamad Al Kaabi, Resident Representative of the UAE to the International Atomic Energy Agency (IAEA) who had remarked that; "Along with the UAE's Prime Contract with its Korean partners, many subcontracts have been concluded with local contractors, particularly in the areas of construction, site preparation and infrastructure development." ENEC and KEPCO had identified the participation of local Emirati companies in the construction of the Barakah Nuclear Power Plant to occur through HSJV for the general construction area. The Economist in its 28 Jan 2017 issue titled "How to build a Nuclear Power Plant" had made interesting comparison and highlighted that the Barakah Nuclear Power Plant in Abu Dhabi is using three times as much concrete as the Burj Khalifa Skyscraper in Dubai and six times the amount of steel. Hence, companies that have benefited locally include Emirates Steel, Dubai Cable Company (Ducab), National Marine Dredging Company, DESCON Engineering, Bin Asheer and the Western Bainoona Group. EMIRATI COMPANIES RISE TO THE OCCASION The safe and economical construction, operation and maintenance of any nuclear power plant relies to a great extent on the fuel and materials used. The operating conditions of nuclear reactors such as high temperature, corrosive environment, damage from high energy particles released from nuclear fission as well as the long life time of the reactor, places significant demands on the structural materials used for its construction. As such material required for the construction of nuclear power plants are categorised as safety-related and non-safety related, with the former required to comply to stringent international quality and standards. Recognising this fundamental importance for the safe delivery of the UAE's nuclear power programme, Mohamed Al Hammadi had highlighted that the development of this true nuclear energy economy also means making sure that Emirati companies raise their quality standards to those of the nuclear industry. It is thus within this context that ENEC has established a dedicated industrial development team to assist and support local UAE companies to raise their standards and meet the unique requirements of the nuclear energy industry. This includes upgrading their processes and systems to become American Society of Mechanical Engineers (ASME) Nuclear Component certified companies, the key certification required to become a nuclear-approved supplier. Additionally, ENEC and KEPCO also hold regular Nuclear Supplier Forums to ensure local companies are informed about upcoming opportunities and are guided on the steps required to register for the tendering process for the Barakah project. Mohammed Al Hammadi informed that local companies have already become worldwide suppliers and cited Ducab or Emirates Steel as pioneers in this area and they were outpacing their competitors and winning key contracts to supply nuclear safety services and materials to the nuclear energy industries of other countries. STERLING ACHIEVEMENT FOR MANY GULF COMPANIES Mohammed Sahoo Al Suwaidi, CEO of Nawah Energy Company said during the 24th Global WIN that local UAE company Emirates Steel became the first in the Gulf Cooperation Council (GCC) and fourth in the world to be awarded a quality system certificate (QSC) by ASME. Thus the company is qualified to supply Q-class (nuclear quality) reinforcing steel bars (rebars) for the Barakah project. The reinforcing steel has been tested by ERICO International Corporation, to confirm that the steel is manufactured in accordance with ASME standards. Nuclear-grade steel, the highest quality steel required for nuclear-safety related construction, is one of the many physical safety and design features that make nuclear power plants amongst the strongest and most robust structures in the world. Before this, Abu Dhabi had imported the Q-class reinforcing steel from South Korea because no local manufacturers met the strict qualification criteria. LANDMARK NUCLEAR CONTRACT BY LOCAL UAE COMPANY Mohammed Sahoo pointed out that the premium and extended long life cables manufactured by Dubai-based Ducab, made to American and NQA standards, will be used for class 1E power and lighting in the four reactors at the Barakah Nuclear Power plant. Ducab’s nuclear cables have been tested in accordance with the North America's Institute of Electrical and Electrical Engineers (IEEE) standard and this qualification assures a reliable performance of the cables over the 60 years operation lifetime of the nuclear power plant. These cables will not emit smoke or toxic fumes in the event of a fire and will not allow the fire to spread. As a result of Ducab’s success in supplying cables to the Barakah nuclear power plant, the company has won a landmark contract to supply its nuclear industry standard cables, the NuBICCrange, to two South Korean Nuclear Power Plants; Shin Hanul 1 and Shin Hanul 2. "This project win by Ducab is a matter of pride for the company, as well as entire manufacturing and industrial sector in the UAE," said Ahmad bin Hassan Al Shaikh, Ducab's Chairman who was quoted saying by The National daily on Feb 20, 2017. MANY MORE OPPORTUNITIES LIE AHEAD FOR UAE COMPANIES "Many more opportunities lie ahead for UAE companies that are committed to instilling nuclear quality standards across their organisation. Ours is a long term driven partnership and involves many different industrial sectors; from construction to operations and maintenance," Mohamed Al Hammadi pointed out. As many of ENEC’s suppliers of non-nuclear grade materials are also supplying to other industries within the country, this has a positive impact on the quality and safety standards of other industries across the UAE. Within a few years the UAE is witnessing a burgeoning local nuclear supply chain. By focusing on local companies, ENEC is also helping to stimulate the local economy in the Western Region and the UAE as a whole. MALAYSIA TOO SHOULD NOT MISS THE OPPORTUNITIES In view of the success of Malaysian companies supplying quality products and services in the construction, manufacturing and services industry domestically as well as internationally, the Malaysian government has to identify and regard nuclear industry as a new and emerging industry for local companies to enter and invest in. This is in line with the objectives of the Economic Transformation Programme (ETP) encouraging local companies to enter new industry areas. As a first step, the Government through MITI (MIDA and MATRADE) could list nuclear industry as a new strategic industry for Malaysia in view of its large global market potential. Then develop strategies to update local companies knowledge, and awareness regarding this industry. An important next step would require the Government to bring along business leaders on overseas mission to include incorporating nuclear industry cooperation as part of Government–to-Government (G-to-G) and Business–to-Business (B-to-B) dialogue and cooperation/collaboration. It is imperative that the Malaysian Government offers strategic support for Malaysian Companies to tap/harness/capture this new market for Malaysia. -- BERNAMA