The United Arab Emirates (UAE) seeks Australian uranium in developing first nuclear power program.

The United Arab Emirates (UAE) is one of the most technologically advanced and oil rich countries in the Middle East; however, oil is not enough to meet the country’s expected energy demand in coming decades. In preparation, the UAE is following suit with neighboring Saudi Arabia and pursuing a nuclear power program of their own, with Australia as yellow cake uranium supplier of choice.

The UAE is a signatory to the Nuclear Non-Proliferation Treaty, which is a fundamental requirement for Australia uranium sales. The UAE also has safeguard protocols in place with the International Atomic Energy Agency to further ensure the peaceful intentions of a UAE nuclear power program.

Australian Foreign Minister Kevin Rudd says, "The UAE currently estimates that annual peak demand for electricity will reach more than 40,000 megawatts by 2020, and the proposed agreement would open up an important additional market for Australian uranium producers."

The UAE is on track to use the Australian uranium for electricity generation in their proposed nuclear power program by 2017. Braka—a coastal location in western UAE has been named as the site for the UAE’s ‘Emirates Nuclear Energy Corporation’ (Enec).

The Australian Uranium Association, which features members such as mining and energy heavyweights BHP Billiton, Areva, and Mitsubishi, has openly welcomed the decision to sell Australian uranium to the UAE.

However, opposition parties to Australia’s announcement to sell uranium to the UAE have cited various discrepancies in the decision. Some note the inconsistency in Australia’s choosing of which states to sell the nuclear fuel to, noting that selling to the UAE and not to countries like India—who has sought Australian uranium for some time now—may create diplomatic rifts. Also, the fear of the UAE becoming a target for terrorist attacks in a region that is highly unstable adds further concern. However, with OPEC nations like the UAE finally recognizing the potential decline in Middle East oil reserves, nuclear power is becoming a more attractive energy option throughout the region.

energydigital.com