UAE signalsinterest in European nuclear energy investments, sources say
By AlexanderCornwell and Maha El Dahan
March 30,20243:02 AM GMT+8Updated a day ago
DUBAI,March 29 (Reuters) - The United Arab Emirates has approached European nationsincluding Britain to gauge their interest in the Middle Eastern state investingin their nuclear power infrastructure, according to three sources familiar withthe talks.
Aspart of its outreach, the UAE has discussed the idea of state-owned EmiratesNuclear Energy Company (ENEC) becoming a minority investor in European nuclearpower assets, the sources said. They requested anonymity because thediscussions are private.
Advertisement· Scroll to continue
ENEChas ambitions of becoming an international nuclear energy company holdingminority stakes in nuclear power infrastructure of other nations, withoutmanaging or operating them, the sources told Reuters.
ENEC,owned by Abu Dhabi's ADQ, has been holding talks to invest in the UnitedKingdom, the sources who have been briefed on the discussions added, withoutelaborating. Cash-rich oil producers United Arab Emirates and Saudi Arabia areseeking to diversify their economies away from fossil fuels. Meanwhile, Britainis looking for additional private investment in the Sizewell C large-scale nuclear project being built by French energy giant EDF in southeast England after buying out a China backer.
Advertisement· Scroll to continue
TheUAE and Britain in December signed a so-called memorandum of understanding oncivil nuclear cooperation at the U.N. climate summit in Dubai, where more than20 countries agreed a pledge to treblenuclear capacity, opens new tab by 2050.
"SizewellC is a crucial part of the UK's agenda for new nuclear power, which is centralto our plans for achieving a low cost, clean and secure electricitysystem," a spokesperson for Britain's Department for Energy Security andNet Zero told Reuters.
"Thecommercial structure of the project is subject to ongoing development andcommercially sensitive discussions," the spokesperson said, adding theycould not comment further.
Aspart of "international growth and investment plans, ENEC is working with amultitude of partners to explore collaboration opportunities in both new civilnuclear projects and civil nuclear technologies and related clean energytechnologies such as clean hydrogen," ENEC said in a statement to Reuters.
EDFdeclined to comment.
TheUK and EDF are 'on track' to raise 20 billion pounds ($25.2 billion) forSizewell C by end of year, a UK energy security minister told the FinancialTimes in January, without naming the investors. UK ministers have been liningup Abu Dhabi investors for Sizewell C, the Times of London reported last year.
Thesources told Reuters that, among the proposals, ENEC could also be a partner inthe development of new nuclear energy infrastructure in European countriesgiven its relatively recent experience in building a facility.
ENECoversaw the construction of the UAE's sole nuclear power plant, which was constructed in Abu Dhabi by Korea Electric Power Corp (KEPCO), and started commercial operations in 2021.
SeveralEuropean countries are pushing to expand nuclear - a low-carbon energy source -in an effort to meet ambitious climate goals and develop alternatives toRussian energy supplies.
ButEuropean Union states are divided over nuclear energy use, which fell out offavour over safety concerns following Japan's Fukushima nuclear accident in2011.
Alack of investment, cost overruns and delays have also plagued recent projects.
ENEC'sbacking by a wealthy Gulf state could potentially help overcome investmentchallenges. However, it could also face political opposition to an investmentin such a sensitive area.
Emiratistate investments have recently raised concerns in Britain, which has blocked a state-linked acquisition of prominent conservative newspaper the Telegraph.
Britain'sgovernment also determined that a recent investment by UAE state-linkedtelecommunications company E& posed national security concerns, althoughapproved the deal.
($1= 0.7925 pounds)
TheReuters Power Up newsletter provides everything you need to know about theglobal energy industry. Sign up here.
Reporting by Alexander Cornwell and Maha El Dahanin Dubai; additional reporting by Susanna Twidale in London and DominiquePatton in Paris; Editing by Elisa Martinuzzi and Ros Russell
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Thomson Reuters
Maha reports on energy andcommodities across the Middle East region. She has been working as a Reutersjournalist for the past 15 years and has covered stories across Egypt, theGulf, Yemen, Iraq, Syria, Lebanon and Jordan. She has previously managed the Lebanon,Syria, Jordan bureau. Contact: @mahaeldahan
