(2nd LD) S. Korea aims to export 80 nuclear reactors by 2030

(ATTN: UPDATES with more details in para 5-7; ADDS with more information, comments
in paras 13-15)
SEOUL, Jan. 13 (Yonhap) -- South Korea aims to export 80 nuclear reactors by 2030
as part of its strategy to become one of the top three atomic energy powers in
the world, the government said Wednesday.
The Ministry of Knowledge Economy said in a nuclear energy industry meeting
chaired by President Lee Myung-bak that the country will strive to grab at least
20 percent of the global market share for new reactors in the next 20 years.
To meet this goal, the country must "customize" export strategies to meet the
needs of individual countries, attain full technological self-sufficiency to
bolster competitiveness, train more engineers and set up arrangements to ensure a
steady supply of fuel, the ministry said.
"The strategy reflects predictions that nuclear energy has considerable growth
potential on par with autos, semiconductors and shipbuilding and can become a
leading source of exports," Vice Knowledge Economy Minister Kim Young-hak told a
group a reporters after the meeting with the president.
Kim added that by 2030, South Korea should join the United States and France as
one of the world's leading builders of nuclear reactors. The two countries
account for roughly 70 percent of all nuclear reactors built in the world at
present.
At present, Russia, Canada and Japan as well as the two countries are the only
countries in the world to have exported nuclear reactors. South Korea became the
sixth with the signing of a US$20 billion deal to build four APR-1400 reactors
sold to the United Arab Emirates (UAE) late last year.
Without going into detail, the vice minister said that including the UAE
contract, Seoul wants to sign deals to build 10 reactors by 2012.
Foreign sources including the World Nuclear Association predict that 430 new
large reactors may be built worldwide by 2030, and that demand will drive the
construction of up to 1,000 small- and medium- sized reactors by 2050.
South Korean energy companies reported the highest operational rate for reactors
in the world in 2008 and can build reactors more quickly and inexpensively than
rivals elsewhere, the vice minister said. Kim added that South Korea is also
eying the nuclear power plant management and maintenance market, estimated to be
worth the 88 trillion won (US$78 billion).
"In particular, there is growing demand for overhauls and life extensions for
heavy water reactors," the official said. He stressed that South Korea has a
proven track record in the management and maintenance field, a factor that will
help local companies win future contracts.
With US$88.3 million injected into research and development (R&D) since 2006, the
country is expected to become totally self-sufficient in key technological areas
by 2012, Kim said. Presently the country's technology level stands at 95 percent
of global leaders; a reliance on foreign technology has hindered exports in the
past.
Kim said a further 400 billion won is to be used to upgrade domestically designed
reactors so they can be more efficient and less costly. The official said Seoul
will also train 2,800 new nuclear experts by 2011 to meet demand for domestic and
overseas construction projects and boost the number of R&D personnel.
The government's plan also includes a set of measures to secure a stable supply
of nuclear fuel. South Korea's self-sufficiency in uranium-based fuel currently
stands at 6.7 percent of demand, but this is to be raised to 25 percent in 2016
and 50 percent by 2030.
Turning to market strategy, Kim said that South Korea may work with the UAE to
help get necessary financing to build new plants. "Such an arrangement would
merge South Korean technology with the UAE's financial resources and translate
into a win-win arrangement for both sides," he said.
He said Seoul and Abu Dhabi agreed to transform the UAE into a nuclear hub for
the Middle East.
The vice minister said that South Korean reactor builders may consider forming
cooperative tie-ups with foreign companies to make inroads into large foreign
markets in the United States, Europe and China, with the local reactor builders
taking steps to comply with design requirements of foreign countries that already
operate commercial nuclear reactors.
For countries that do not have any operational experience in terms of operating
nuclear reactors, Seoul can offer training of experts and related infrastructure
building.
The ministry, meanwhile, said that if the country can sell 80 reactors by 2030,
the total benefit could amount to $400 billion -- larger than South Korea's total
export volume last year -- helping to create some 1.56 million new jobs and
fuel-related sales of nearly 26.7 trillion won.
yonngong@yna.co.kr
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