Japan’s Hitachi is closely watching opportunities for nuclear power projects, particularly in Abu Dhabi, despite having lost to its South Korean competitors five years ago. “We are closely watching [the next phase of the Baraka] nuclear power project in Abu Dhabi, as well as various other activities in the region’s desalination and construction sectors,” said Hiroaki Nakanishi, chairman and CEO of Hitachi, on 29 October in Tokyo. Nakanishi said Hitachi is also keen to participate in the construction of Saudi Arabia’s King Abdullah City for Atomic and Renewable Energy (KA-Care) civilian nuclear power project once it takes off, citing that the firm’s South Korean competitors’ funding resources are already fully extended in the Abu Dhabi nuclear project. “However, I believe we will need support from our US counterparts to increase our chances in winning [any nuclear contracts] in Saudi Arabia,” Nakanishi added.
A cooperation agreement between governments is required for the construction of nuclear power plants. While the UAE and Saudi governments have signed such agreements with South Korea and France, a similar agreement is reportedly still under process between the two GCC states and Japan or the US. South Korea’s Korea Electric Power Corporation (Kepco) is the lead contractor for Abu Dhabi-owned Emirates Nuclear Energy Corporation’s (Enec’s) $20bn nuclear power plant. Saudi Arabia’s ambitious KA-Care programme has been stalled, although a recent reorganisation indicates the scheme may not have been totally abandoned. The Middle East and North Africa region accounted for 1 per cent per cent of the Japanese firm’s $81bn revenues in 2014, with plans to increase this further in its mid-term plans for 2016 to 2018.
“The Middle East is not by any means a small market for us, it is in fact a very significant market, especially for our energy solutions, and we are prepared to invest [in the region] going forward,” said Nakanishi. The CEO, however, said that a more stable political situation, particularly in countries such as Iraq, where Hitachi has built a desalination plant, would be required for the firm to significantly expand its operations in the region.
