(EDITORIAL from the Korea Herald on Dec. 28)

Dream come true

The selection of Korea as the builder of commercial nuclear reactors in the
United Arab Emirates has come as the culmination of its nuclear research, which
began with the 1959 importation of a U.S.-made research reactor, and the nation's
operation of commercial reactors starting in 1977.

It also proves that Korea is
an emerging powerhouse to be reckoned with in the global market for nuclear power
plants - a market that has been dominated by the United States, France and
several other industrial powers.
The UAE announced the Korean consortium, led by Korea Electric Power Corp., as
the winner of the $40 billion contract yesterday. But the Korean consortium,
which includes Hyundai Construction and Engineering and Doosan Heavy Industries
as participants, had already been anticipated to beat U.S.-Japanese and French
bidding groups when President Lee Myung-bak embarked on his trip to Abu Dhabi for
summit talks with UAE President Sheikh Khalifa bin Zayed al-Nahanyan on Saturday.
It was hardly imaginable that the UAE leader had agreed to summit talks with Lee
only to send him empty-handed back to Korea. That would have gone against the
conduct of diplomacy.
Though it had exported no nuclear plant yet, Korea still had advantages over its
rivals as the sixth-largest nuclear power generator in the world. With 20 nuclear
reactors in operation, Korea is renowned for the lowest downtime in the world.
Moreover, it is highly efficient in constructing nuclear plants, which takes 58
months on average.
Also of great help in winning the contract were the close relations Korea has
cultivated with the UAE - particularly in trade and construction. The UAE is the
second-largest oil and natural gas exporter to Korea. In addition, Korean
construction companies have been playing a leading role in the building of
infrastructure in the Arab country.
Moreover, Korea recently concluded a nuclear cooperation agreement with the UAE,
under which it is set to extend assistance in building the Middle East country's
nuclear program by providing nuclear technology, equipment and supplies for a
20-year period.
Given the sheer size of the contract, Lee had to get himself involved in the
bidding race. Reportedly, the portion of construction alone is estimated at as
much as $20 billion, an amount equal to revenues from the exports of 1 million NF
Sonata compacts or 180 300,000-ton oil tankers.
Moreover, the contract was all the more appealing to the president, given that 10
years of construction, scheduled to begin in 2012, are estimated to provide work
for 110,000 people. The contract should prove to be a boon to Lee, who has
already promised to give top priority in policy to job creation next year.
The Korean consortium won the contract at a time when the global market for
nuclear reactors is on the verge of a quantum leap, as many countries are turning
to nuclear power as a source of inexpensive and clean energy. A surge in the
price of oil and the increasing public awareness of thermal power stations as a
major culprit responsible for greenhouse gas emissions have subdued environmental
activists' opposition to nuclear power.
Currently, 436 commercial nuclear reactors are in operation in 31 countries in
the world. According to an industry estimate, 400 more will be built by 2030. For
its part, Korea plans to build 12 additional nuclear reactors by 2022.
The contract Korea won from the UAE should serve as an excellent track record
when it bids for similar contracts in the years ahead. In particular, Korea will
have to pay close attention to Thailand, Turkey, Mongolia, Nigeria, Qatar and
Azerbaijan, which industry sources say are planning to build nuclear power plants
as a new source of energy.
Winning contracts from those countries should not be too difficult. If it has
developed its auto, semiconductor, shipbuilding, steelmaking and electronics
industries from scratch to become world-class exporters, why cannot Korea add
nuclear power generation to the list?
In advancing the nation's nuclear power industry, due credit should be given to
early Korean nuclear scientists, who successfully conducted outstanding research
projects despite inadequate funding. Two decades ago, nuclear scientists at the
Korean Atomic Energy Institute could not afford to develop research reactors
tailored to specific purposes.
As such, they decided to develop a multi-purpose one, for which they were
reportedly derided by foreign scientists who said one reactor designed to do
multiple jobs would do no single job properly. But in 1995, they debuted one that
could do all the jobs it was designed to do excellently - a 30-megawatt High-flux
Advanced Neutron Application Reactor, better known as HANARO.
HANARO's development undoubtedly contributed to winning a contract earlier this
month to provide Jordan with a small 5-megawatt research reactor - the first such
contract in the nation's 50-year history of atomic research. In the past, Korea
has exported parts, equipment and operation-related services, but not a reactor.
Industry sources say worldwide demands for research reactors will increase
sharply as many of the 240 in operation will soon become obsolete. Korea will do
well to develop research reactors as an important export item.
More important, however, the HANARO development served as the foundation from
which to develop the Korean Standard Nuclear Power Plant - a model jointly
developed by Korea Power Engineering Co. and Doosan Heavy Industries. With its
own design, Korea will have to more actively engage foreign utilities for
additional nuclear plant exports.
Winning a contract from the UAE is undoubtedly a dream come true not just for the
KEPCO-led consortium or Korean nuclear scientists but for the entire nation. All
the stakeholders are well-advised to keep the dream alive.
(END)