South Korea’s TeamKorea, which includes Korea Electric Power Corporation (Kepco) and Korea Hydro & Nuclear Power (KHNP) are looking to enter Vietnam’s nuclear power market in partnership with the United Arab Emirates (UAE). South Korea’s Ministry of Trade, Industry & Energy in July held high-level talks in Hanoi with Vietnam’s Ministry of Industry & Trade, proposing a plan for Korea and the UAE to jointly construct the Ninh Thuan 2 nuclear power project.
Vietnam’s Ninh Thuan nuclear project plans a total of four reactors in the Ninh Thuan region. The Ninh Thuan 1 project is being constructed by Russia and the Ninh Thuan 2 project was originally to be constructed by Japan. However, when Japan gave up its preferred bidder status and decided to withdraw from the project, Korea saw an opportunity to enter Vietnam’s nuclear power market.
Korea is hoping to enhance its competitiveness in the global nuclear export market by combining its large-scale reactor construction capabilities with the UAE’s oil wealth. Should the Korea-UAE alliance win the Vietnam contract, it would provide a springboard for the revival of Korea’s nuclear export prospects. These have been seriously disadvantaged following a lengthy legal battle with US-based Westinghouse over intellectual property, which effectively resulted in Korea’s exclusion from the European market (except the Czech Republic).
The government’s proposal for a three-way Korea-UAE-Vietnam cooperation, acknowledges that the UAE’s abundant financial capacity could serve as leverage in winning the project. “In financing, the UAE has the capacity to offer bold and competitive interest rates,” a Korean official said. “If Korea’s technology combines with the UAE’s funding, it will not fall behind in competition with China and France.”
South Korea had earlier agreed with the UAE to expand strategic cooperation in the nuclear power and plant sectors, building on team Korea’s successful construction of the UAE’s Barakah NPP. During his visit to the UAE last November, Korean President Lee Jae-myung noted: “The success of the UAE’s Barakah nuclear plant opened a new chapter in energy cooperation between the two countries…. We will also pursue ways for the two countries to jointly enter the global nuclear power market.” Minister of Trade, Industry and Energy Kim Jung-kwan visited the UAE in June, meeting with high-level officials from key nuclear power institutions to discuss formation of a cooperation framework for jointly entering promising nuclear markets in third countries.
Meanwhile, US nuclear consultancy company EXCEL Services Corporation, has announced the formation of EXCEL Services Vietnam, a wholly owned subsidiary, with the aim of expanding its presence in Vietnam as the country advances plans to develop nuclear power as a critical source of reliable electricity to support continued economic growth.
“Vietnam has demonstrated a strong commitment to developing nuclear power as an important electricity generation source, and EXCEL is proud to support the country’s efforts to establish safe and effective nuclear power operations,” said EXCEL President & CEO Dr Donald Hoffman. “We look forward to being part of this important and exciting journey.”
EXCEL named James Voss as General Director of EXCEL Services Vietnam and has established offices in Hanoi City and Ho Chi Minh City. EXCEL has already entered into memoranda of understanding with the Vietnam National Innovation Centre (NIC) and the Ho Chi Minh City University of Technology. Additional cooperation agreements are under development with strategic government agencies and corporate partners.
Vietnam’s strategy for the peaceful development and deployment of nuclear energy to 2035, with a vision towards 2050, expects nuclear power to account for 6-8% of total electricity output. As well as the construction of four large-scale nuclear power units, the plan includes and 10-15 small modular reactors.
According to the revised Power Development Plan VIII, Vietnam aims to bring Ninh Thuan 1 and 2 into operation between 2030 and 2035, with a combined capacity of 4,000-6,400 MWe. By 2050, an additional 8,000 MWe of nuclear capacity will be required to provide stable baseload power, with the potential for further expansion depending on demand.
