Welcome to AtomWatch - world nuclear power news and analysis

This blog is aimed at tracing the world news related to nuclear power development internationally and in particular countries. Being an independent resource, we accept all kinds of opinions, positions and comments, and welcome you to discuss the posts and tell us what you think.

Monday, February 8, 2010

North African country attracted by SA nuclear reactor technology

http://www.engineeringnews.co.za/article/north-african-country-attracted-by-sa-nuclear-reactor-technology-2010-02-08

By: Keith Campbell
8th February 2010

Updated 1 hour 28 minutes ago The Algerian Atomic Energy Commission (Comena is its acronym in French) has expressed interest in South Africa’s pebble-bed modular reactor (PBMR) technology.

The PBMR is a fourth-generation high-temperature gas-cooled reactor technology, named after the spherical shape of its fuel elements, that is being developed by South Africa’s PBMR Company.

“We plan to build 1 000 MW(electrical) of nuclear capacity by 2022 and 2 400 MW(e) by 2027,” said Comena chairperson Dr Mohammed Derdour on a visit to the PBMR Company. “Since this power is needed for both electricity generation and desalination, the pebble-bed technology seems to be an extremely attractive option.”

Although the country, which is the second-largest in Africa, is a major oil and gas producer, it wants to diversify its energy base and economy away from hydrocarbons. Currently, oil and gas contribute 30% of Algeria’s gross domestic product and account for 98% of its export earnings.

Algeria is a signatory of the nuclear non-proliferation treaty but does not yet operate any nuclear power plants. “Algeria has atomic energy agreements with Argentina, China, France and the US,” he reported. “We also have two research reactors, which were built by Argentina and China respectively.”

Comena is interested in constructing nuclear plants, about the size of a PBMR, near villages in more remote areas, which would be used for both power generation and desalination. Desalination would be relevant for both coastal villages and inland villages where the ground water resources are saline.

South Africa and Algeria signed a Memorandum of Understanding (MoU) in 2003 on cooperation in nuclear and radiation sciences.

“We believe the PBMR technology is ideal for a country such as Algeria with its need for clean water,” affirmed PBMR Company CEO Jaco Kriek. “We would very much welcome Comena’s involvement in the PBMR Company.”

The future of the predominantly State-owned PBMR Company has lately been in doubt, with the Solidarity trade union recently claiming that the South African government would not be providing any further funding for the project and that the company would run out of money in April.

The PBMR Company denied that the government had yet taken any decision, saying that its future and that of high-temperature reactor technology development in South Africa was being reviewed by government, in cooperation with national State-owned electricity utility Eskom and the South African Nuclear Energy Corporation (better known as Necsa and also State-owned).

Last Thursday, the PBMR Company announced that it had signed an MoU with Mitsubishi Heavy Industries of Japan concerning the exploration of cooperation regarding the construction of the first PBMR for a customer, whether in South Africa or abroad.

Edited by: Creamer Media Reporter

Thursday, February 4, 2010

SAfrica's PBMR signs nuclear deal with Mitsubishi

http://af.reuters.com/article/southAfricaNews/idAFLDE6110WI20100204?feedType=RSS&feedName=southAfricaNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FAfricaSouthAfricaNews+%28News+%2F+Africa+%2F+South+Africa+News%29

Thu Feb 4, 2010 11:32am GMT
* PBMR nuclear tech firm signs Japanese agreement * Mitsubishi to help with research, development

CAPE TOWN, Feb 4 (Reuters) - South African nuclear technology firm PBMR has signed an agreement with Japan's Mitsubishi Heavy Industries Ltd to advance the construction of the country's first pebble bed nuclear reactor.

Considered by scientists to be at the forefront of pebble-based nuclear technology, South Africa plans to build its first plant by 2018 as Africa's biggest economy cuts its reliance on coal and tries to end a chronic power shortage.

"The main objective of the memorandum of understanding is to explore cooperation to enable the construction of the first PBMR reactor for a customer in either South Africa or abroad," the Pebble Bed Modular Reactor (PBMR) company said in a statement.

Mitsubishi Heavy (7011.T: Quote) did the basic design and research and development of a helium-driven turbo generator system and core barrel assembly, the major components of PBMR's original 400 MW thermal, direct-cycle design.

This concept was changed last year to a 200 MW design that delivers super-heated steam through a generator, said PBMR, which hopes to attract business from firms active in Canada's oil sands and petrochemicals group Sasol (SOLJ.J: Quote).

"We firmly believe that high temperature reactors will be one of the viable future reactors," Akira Sawa, executive vice-president and general manager of nuclear energy systems at Mitsubishi Heavy, said in the statement.

Sawa said his firm would undertake research and development work to help ensure the success of the project, which deals with the next generation of nuclear reactors. For a factbox on PBMR technology, click on [ID:nLN504919]

"There are... important additional technological development opportunities that can be exploited (and) the possibility that PBMR may in future still want to pursue the direct cycle, gas-turbine design, should also not be ruled out," he said.

U.S.-based Westinghouse Electric, majority owned by Japan's Toshiba Corp (6502.T: Quote), South African power utility Eskom [ESCJ.UL] and South Africa's Industrial Development Corporation have invested 7 billion rand since 1999 proving the PBMR technology. (Reporting by Wendell Roelf; editing by James Jukwey)

Monday, February 1, 2010

Israeli minister proposes cooperation with France, Jordan on nuclear power plant

http://www.individual.com/story.php?story=113917427

Feb 01, 2010 (BBC Monitoring via COMTEX) --

[Report by Ehud Zion Waldoks: "Israel, France Discuss Joint Nuclear Power Project With Jordan"]


National Infrastructures Minister Uzi Landau said Sunday he had recently raised the idea of cooperating with Jordan on a nuclear power plant in a recent meeting with French Environment Minister Jean-Louis Borloo.

For his part, Borloo said he would bring up the notion with French President Nicolas Sarkozy, Landau said during a press conference on renewable energy at the ministry on Sunday [31 January].

Jordan has announced that it has begun environmental impact assessments ahead of building a plant near Aqaba in the South.

France is a world leader in nuclear power and has garnered a vast wealth of technical know-how. Eighty per cent of French electricity is produced by nuclear power plants.

Israel has ruled out nuclear power plants until now because of its undeclared nuclear weapons state status. Building a plant would mean that Israel would have to sign the Nuclear Non-Proliferation Treaty (NPT) and throw open its Dimona reactor to international inspections, something it has been reluctant to do.

During the press conference ahead of the Eilat-Eilot International Renewable Energy Conference to be held in mid-February, Landau also floated an idea for a collaborative regional power generation project.

"Egypt could provide land in Sinai, Israel could provide the technology and a US or European entrepreneur could build a solar power plant. We are certainly not lacking in ideas," Landau said.

Landau seemed to indicate that this was a potential initiative rather than one that his ministry was actively pursuing.

Both Landau and ministry chief scientist Shlomo Wald called the goal of 10 per cent of energy from renewable sources by 2020 "ambitious, but doable."

Wald said they would rely on proven technologies such as solar-thermal in the initial phase to create installed megawatts at the Ashelim and Timna sites in the Negev. However, he said the ministry was also actively supporting next generation technologies, like concentrated photovoltaic (CPV) and new solar-thermal applications.

Regarding the necessity for another coal-fired power plant in Ashkelon, Landau said it was "irresponsible" to base 70 per cent of the country's energy needs on natural gas. Coal was still the baseline fuel because it was the most reliable in comparison to natural gas and renewables.

Furthermore, he argued, building the new plant would enable the Israel Electric Corporation to take the eight older coal-fired power plants offline for six to seven months to retrofit them with new filters to reduce pollution. He cited a cost of $2b. for this project.

"At the end of the process, the situation will be dramatically better for Ashkelon residents and all of the citizens of Israel," Landau declared.

Source: The Jerusalem Post website, Jerusalem, in English 1 Feb 10

SAfrica: Expert urges state to proceed with nuclear project

http://www.individual.com/story.php?story=113907808

Feb 01, 2010 (BBC Monitoring via COMTEX) --

[Report by Siseko Njobeni: "State is Urged to Go On with Nuclear Project"]


THE government should have the courage to proceed with the development of the pebble bed modular reactor technology, nuclear expert Kelvin Kemm said yesterday.

He warned the country could ill-afford to lose intellectual skills invested in developing pebble bed modular reactor technology, and the project would be vital in cutting SA's carbon emissions as international pressure mounted.

Kemm's comments follow speculation that the government could pull the plug on the experimental project after the Department of Public Enterprises said yesterday it was reviewing the project due to a lack of funds. Spokeswoman Ayanda Shezi said the department would communicate the decision of the review "in due course".

Pebble Bed Modular Reactor (PBMR), the company set up to develop and supply the reactors, has spent about R8bn since 1999. PBMR said recently said that it had less than R1bn left, enough until the end of next month.

Advocates of the project have punted it as a solution to SA cutting its carbon footprint, promising less gas emission than from existing and future coal-fired power stations. PBMR was established to develop and market small-scale, high-temperature reactors locally and internationally.

Commenting on the possibility of the government abandoning the technology, Kemm said yesterday such a move would be a mistake given the pressure to reduce greenhouse gas emissions. "Nuclear is the only way to go for SA and the rest of Africa. There is a huge export potential for (the pebble bed modular reactor). It is an investment with a huge return. We have invested a lot in human capital in the project. We will lose all of that. I do not believe the project should be stopped.

"Even the biggest of projects must start somewhere. SA should have the courage to proceed with this project. There is too much caution. With fear, we would not have built Sasol, Richards Bay and Coega. We need courage," he said.

Earthlife Africa is among the critics of the project. Yesterday, Tristen Taylor, Earthlife Africa Johannesburg project coordinator, said: "PBMR is a waste of money and should be cancelled".

It remains unclear how canning the project would affect state plans to create a nuclear industry. The government is expected to spell out its nuclear plans soon. "The matter is before a committee of ministers and decisions, and communication thereof will be made in due course," the Department of Minerals and Energy said last week.

Energy Minister Dipuo Peters said SA could have a new nuclear power station by 2020. Public Enterprises Minister Barbara Hogan said last year the initiative could be instrumental in creating a strong nuclear industry. In 2008, Eskom [Electricity Supply Commission] abandoned plans to build a nuclear power station, citing financial constraints.

The government, power utility Eskom, the Industrial Development Corporation and US nuclear company Westinghouse are shareholders in PBMR.

Source: Business Day website, Johannesburg, in English 1 Feb 10

Tuesday, January 26, 2010

Israel utility IEC considers building nuclear, solar plants instead of 2 GW clean coal facility

[In addition to the famous Dimona facility, Israel still has a nuclear engineering department at Ben Gurion University.]

http://pepei.pennnet.com/articles/article_display.cfm?ARTICLE_ID=372689&p=6§ion=ARTCL&subsection=none&c=none&page=1

26 January 2010 - Israel Electric Corporation (IEC) is considering building a 1200 MW nuclear power plant and a 1000 MW solar array, instead of building a coal fired power plant due to come online in 2020.

Globes reported that IEC's current development plan for 2020 includes the construction of an Integrated Gasification Combined Cycle (IGCC) power plant, in addition to the coal fired power plant planned for construction near Ashkelon which is due to come onine in 2015.

However, IEC said that the company was considering building a 1200 MW nuclear power plant and a 1000 MW solar energy plant instead.

IEC deputy CEO and VP production and transport Moshe Bachar said that the transition to environmentally friendly energy sources was essential, and that higher electricity rates were inevitable. "In the coming years, we will have to create a mix of fuels, while conserving the environment and saving energy sources, despite the expected rise in demand for electricity. The era of cheap electricity is over," he said.

Bachar said that Israel's future energy economy would be based on environmentally friendly energy sources: nuclear power, natural gas, and renewable energy. The company will only use coal fired power plants as back-up and to secure electricity supplies.

The idea for building a nuclear power plant again came up for discussion at government ministries, after Jordan announced plans to build a nuclear power plant near Aqaba.

If IEC decides to build a nuclear power plant and a solar energy plant, it will face technical hurdles, regulatory difficulties, and major opposition from private power producers.

Firstly, a nuclear power plant would require Israel to sign the Non-Proliferation Treaty. Secondly, IEC's massive entry into the renewable energy industry contradicts the policy of the Public Utilities Authority (Electricity) and the Ministry of Finance, which ban this out of concern for unfair competition against private power producers, reported Globes.

Environmental organizations would also probably oppose a nuclear power plant on the grounds of risk of radiation in the event of a breakdown, sabotage, or a strong earthquake. Finally, a 1000 MW solar power array, using current technology, would need 5000 acres of land and cost $4 bn to build.

Monday, January 25, 2010

New Computer Model Shows Nuclear Fission

http://news.softpedia.com/news/New-Computer-Model-Shows-Nuclear-Fission-132990.shtml

By Tudor Vieru, Science Editor

25th of January 2010, 09:11 GMT

Scientists at the US Department of Energy's (DOE) Argonne National Laboratory (ANL) announce the development of a new computer algorithm that allows for them to visualize the reactions that go on inside a nuclear reactor in finer detail than ever before. The neutron transport code UNIC, which is still under development at ANL, will provide researchers in the end with the most detailed view of a reactor's core possible, without them actually jumping inside a reactor.

Modeling the complex interactions of a nuclear reactor is one of the most complex tasks in physics today. It requires hundreds of angles of approach, thousands of energy groups, billions of spatial elements, as well as the introduction of all these things into a complex geometry. Naturally, all these elements cause the memory on most computers to get rapidly exhausted. Simulations therefore take many weeks and months to run, and even then the results are not the most accurate possible. In fact, most of the times, researchers use approximations in formulating their conclusions.

“The UNIC code is intended to reduce the uncertainties and biases in reactor design calculations by progressively replacing existing multilevel averaging techniques with more direct solution methods based on explicit reactor geometries,” ANL computational scientist Andrew Siegel, who is also the leader of the lab's reactor simulation group, explains. UNIC has already been run at some of the most advanced supercomputing facilities in the world, including the energy-efficient IBM Blue Gene/P at Argonne and the Cray XT5 at the Oak Ridge National Laboratory.

Engineers and nuclear physicists could use the UNIC algorithm to create safer, more environmentally friendly nuclear reactors, which could benefit a large number of countries in the world. As carbon dioxide becomes an increasing threat, oil and natural gas will be shunned from the market more and more, and renewable energies will take their place. Nuclear fission is one of the safest bets, but new nuclear reactors have not been built in a while. A video of a more detailed simulation of the Zero Power Reactor experiment is available online here.

Monday, January 11, 2010

Shaw and Westinghouse Reach Critical Milestone at Unit 1 of Sanmen AP1000™ Nuclear Site in China

[Photo weblink of the containment vessel lower head being set at Sanmen 1.]

http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=multimedia_detail&eid=6137107&newsLang=en

Wednesday, January 6, 2010

French nuclear deals need bespoke flavour

[The article does not really mention this, but another factor for the Koreans is that they have more recent construction experience.]

http://www.sharenet.co.za/v3/news_disp.php?id=196924

* France should adapt reactor offer to clients-analysts

* EPR for Europe, U.S. and China; cheaper reactors elsewhere


By Marie Maitre and Nina Sovich

PARIS, Jan 6 (Reuters) - France could miss out on more multi-billion dollar deals to build new nuclear power plants unless it changes its current nuclear export strategy and adapts its technological offer to local needs, analysts said.

French nuclear firms should stop pushing expensive state-of-the-art reactors to developing countries and instead market the EPR -- Areva's flagship nuclear reactor -- to rich countries where top-notch safety systems are politically key, they added.

Countries such as India or the Gulf states should be offered older, cheaper technology, analysts said, adding Areva should also work on quickly finalising a smaller type of reactor with new technology to broaden its range of products.

A consortium led by EDF and GDF Suez, and including Total and Areva, were dealt a blow in December when the United Arab Emirates picked a South Korean group to build four reactors.

Two sources close to the deal told Reuters that Abu Dhabi chose a South Korean consortium, led by Korea Electric Power Corp (KEPCO), because the 1,650 megawatt (MW) EPR was too expensive.

While the Korean consortium offered to build four 1,400 MW reactors for $20 billion, the French offered to build its bigger and more modern reactors for $36 billion.

The emergence of a powerful new player has turned up the pressure on French groups, which still hope to secure orders for a third of all new reactors to be built worldwide by 2030.

Other rivals bidding to stop them include Toshiba unit Westinghouse Electric, Mitsubishi Heavy Industries and General Electric Co..

The loss of the high-profile UAE deal raises the question of whether the French consortium was flexible enough to present a range of options to Abu Dhabi or simply presumed the oil-based nation had deep pockets and would pay for the EPR.

"This was not simply a question of cost," French Economy Minister Christine Lagarde told the Les Echos paper on Tuesday.

"The French offer was probably not the best calibrated."


EPR SALE HOPES

Analysts said France had to change its nuclear bidding strategy, with some asking why the French consortium did not offer Abu Dhabi existing technology, such as one of the second-generation nuclear power plants operating in France.

"They will have to wonder if they need to offer Rolls-Royces all the time," said Jefferies analyst Alex Barnett.

France offered the EPR -- a third-generation reactor developed after nuclear accidents at Three Mile Island in 1979 and Chernobyl in 1986, and which offers enhanced safety systems by better isolating the core reactor in case of a meltdown.

"The obvious response to the Koreans would have been to offer a second-generation reactor. Some of the latest ones are relatively young. They're also proven," said UBS analyst Per Lekander.

Sources with direct knowledge of the situation, however, said Areva was unlikely to change its strategy.

"(They are) never going to sell second-generations again. (They are) now aiming for higher safety standards, and as they stand, second-generations cannot be sold anymore in the U.S. or Europe, which are (its) key markets," one of the sources said.

Areva declined comment on the loss of the Abu Dhabi deal, but pointed to a smaller 1,100 MW reactor -- Atmea -- that it is developing and which is set to be ready by 2011, and another 1,250 MW model -- Kerena -- whose design is not yet defined.

Both reactors are also third-generation models, but until they are ready, France will pin its hopes on sales of the EPR.

This export drive, however, could be hampered by recent bad publicity.

The first EPR, currently under construction in Finland, has been beset by cost overruns and delays that caused Areva to take a charge of 2.3 billion euros ($3.29 billion) for the project last year.

A second unit being built in France is reportedly behind schedule, sources said, although EDF and Areva deny this. More importantly, three nuclear regulatory bodies chastised both Areva and EDF for a design fault in November.


MARKETING ERROR?

Another source insisted cost issues were behind the UAE loss. Asked whether the French nuclear consortium should have modified its offer when it appeared that the EPR was losing ground to the Koreans', the source said: "No, Abu Dhabi asked for an EPR."

"They wanted it but at the price of (KEPCO's winning design) APR1400, and this was simply not possible. They had to make a choice between a product that was too expensive and a product they liked less but at a price they were willing to pay."

"They wanted a Mercedes but at the price of a Kia," he added, referring to the German luxury car maker and the South Korean manufacturer of smaller and less expensive autos.

These smaller and less glamorous reactors, however, have worked for decades in South Korea with a good safety record.


For a Wrapup on the UAE nuclear deal click on For an Analysis on French nuclear export hitches see For more on the EPR ($1=.6985 Euro) (Additional reporting by Muriel Boselli, editing by Marcel Michelson and Simon Jessop)

2010-01-06 14:36:44

Tuesday, December 29, 2009

France-based Areva, Fresno Nuclear Energy Group to study new generation reactor in California

[Full disclosure: I am a native of California. California once had several universities with nuclear engineering programs and research reactors. Currently, there are two nuclear plants in California (San Onofre and Diablo Canyon).]

http://www.sfexaminer.com/economy/80276742.html

Associated Press
12/29/09 10:29 AM PST PARIS — French nuclear engineering company Areva SA said Tuesday that it plans to work with Fresno Nuclear Energy Group on developing one or two new-generation reactors in California's Central Valley.

Areva said FNEG is a group of investors that wants to acquire the so-called EPR, or European Pressurized Reactor, technology for California.

EPR reactors are under construction in France, Finland and China, and the certification process is under way in the United States and Britain.

Areva has been plagued by delays in Finland, where the first EPR was supposed to be online this year. The last deadline for the 1,600-megawatt EPR unit was 2012 but Areva has since said the project's final cost and completion date remain uncertain.

In California, Areva said that next year the two companies will begin a series of studies identifying the most feasible site for a new nuclear power plant, and will work together on the initial development and permitting process.

Areva said that six companies — Constellation, PPL, AmerenUE, Amarillo Power, AEHI and Duke Energy — have chosen the EPR for a total of eight potential reactor construction projects, pending U.S. certification.

Financial terms of what Areva dubbed a "letter of intent to formalize cooperation" with FNEG weren't disclosed.

Monday, December 28, 2009

South Korea Wins Landmark Gulf Nuclear Power Deal

[FYI, the APR-1400 reactor proposed is similiar to the Palo Verde reactors in Arizona.]

http://www.nytimes.com/reuters/2009/12/27/business/business-us-emirates-korea-nuclear.html?_r=1

By REUTERS
Published: December 27, 2009
Filed at 12:59 p.m. ET

Skip to next paragraph ABU DHABI/SEOUL (Reuters) - A South Korean group won a landmark deal to build and operate four nuclear reactors for the United Arab Emirates, beating more favored U.S. and French rivals to one of the Middle East's biggest ever energy contracts.

Under the $40 billion deal announced on Sunday, which Seoul said it hoped would kick-start an export drive for its nuclear technology, the first nuclear plant in the Gulf Arab region is scheduled to start supplying power to the UAE grid in 2017.

In stark contrast to the development program launched by northern Gulf neighbor Iran, the UAE's nuclear ambitions carry the blessing of its ally the United States.

A consortium led by state-owned utility Korea Electric Power Corp (KEPCO) aims to complete the UAE's four 1,400 megawatt reactors by 2020.

The South Korean president's office described the deal as "the largest mega-project in Korean history," while KEPCO said it was also it was in talks with Turkey to export two nuclear power reactors to Black Sea areas.

The U.S. and the UAE have a nuclear cooperation pact and U.S.-based firm Westinghouse Electric, a unit of Japan's Toshiba Corp, was part of the winning consortium.

It also includes Hyundai Engineering and Construction, Samsung C&T Corp and Doosan Heavy Industries. The UAE has pledged to import the fuel it needs for reactors -- rather than attempting to enrich uranium, the fuel for nuclear power plants -- to allay fears about enrichment facilities being used to make weapons-grade material.

Iran has long been at odds with the West over its declared plans to use enriched uranium to generate electricity, a program the United States and European allies fear is a cover to develop the ability to produce atomic bombs.

South Korea hopes to use nascent nuclear programs in the Middle East, which include developments in Saudi Arabia and Egypt, as a springboard for expanding its nuclear industry, though the projects have fueled concerns within the international community over a regional arms race.

"We are now expecting much bigger opportunities in entering overseas markets as winning the UAE nuclear deal will play a role of convincing those countries in the Middle East and other regions which are thinking of importing nuclear power reactors," KEPCO said in a statement.

ECONOMIC BOOM

The UAE, the world's third-largest oil exporter, needs the nuclear power to help meet an expected rise in electricity demand to 40,000 MW in 2020 from around 15,000 MW last year, amid a petrodollar-fueled economic boom.

South Korea said it also hopes to build more plants in the UAE beyond 2020 to meet future demand.

"Considering the growth estimates in the UAE's power demand, South Korea expects to win additional projects to build nuclear power reactors in addition to this contract for four reactors," it said.

The South Korean group beat a French consortium and another group led by U.S. giant General Electric. The $20 billion Korean bid was $16 billion lower than the French group's bid, an industry source said.

In addition to the deal to design and build the plants, the Korean consortium expects to earn another $20 billion by jointly operating the reactors for 60 years.

'SURPRISE CHOICE'

The choice of South Korea surprised some analysts, who had expected the deal to go to one of the other consortiums for strategic reasons.

"The UAE's choice must have been based on strictly commercial terms because in terms of political clout in the region it's nil," said Al Troner, president of Houston-based Asia Pacific Energy Consulting.

"Korea has a good track record in terms of safety and price and it's a surprise to see the U.S. and France are not part of the bid because they are the ones with the more political strength in the Middle East."

The emirate of Abu Dhabi, which is driving the UAE nuclear program, holds most of the UAE's crude reserves, and has managed to avoid the worst of the global economic slowdown as well as the debt crisis that has hit neighboring Dubai.

Dubai's debt crisis had cast a shadow over financing prospects for other Gulf borrowers but analysts expect blue-chip names like Abu Dhabi and Qatar to weather the fallout.

"These are long-term projects and many of the finance providers will look beyond what is happening today," said John Sfakianakis, chief economist at Banque Saudi Fransi-Credit Agricole Group in Riyadh. "The UAE's nuclear program is a strategic project."

He said the UAE could issue bonds in future to fund the project, in addition to the usual mix of project financing methods such as export agencies and banks.

"I think by the time they do this (issue bonds), the Dubai storm will be over, plus Abu Dhabi would have a substantial windfall from oil revenues," he said..

(Additional reporting by Martin Dokoupil in Dubai)

(Writing by Simon Webb; editing by John Stonestreet)