VietNamNet Bridge – The Vietnam Agency for Radiation and Nuclear Safety (VARANS) and US-based Lightbridge Corporation recently signed a memorandum of understanding (MOU) for cooperation in development of administrative, legal and regulatory infrastructure to support Vietnam’s civil nuclear energy program. VietNamNet talked with Seth Grae – President and CEO of Lightbridge Corporation about the MOU.
The signing ceremony.
The MOU was signed on August 14 after the US Senate’s Foreign Relations Committee approved an agreement on civilian nuclear co-operation between the US and Vietnam, allowing American firms to expand business in Vietnam’s nuclear power market. The two countries signed a co-operation agreement last October, which was approved by the US president in February.
Lightbridge has become the first American company to invest in Vietnam’s fledging civil nuclear power industry.
To ensure energy security, Vietnam had an ambitious plan to build 14 nuclear power reactors with a total capacity of around 15,000-16,000 megawatts by 2030, according to Decision 906/QD-TTg signed by Prime Minister Nguyen Tan Dung four years ago.
The Vietnamese government estimated nuclear power would eventually account for 10 per cent of the country’s total power generation capacity. Nuclear power plants will be built at eight locations in five central provinces in Vietnam – Ninh Thuan, Binh Dinh, Phu Yen, Quang Ngai and Ha Tinh.
The government is currently preparing for the construction of four reactors at two plants in Ninh Thuan that are expected to come on line later this decade. Russian and Japanese contractors will be building the two plants under turnkey contracts.
However, with the plan to build 14 reactors over the next two decades, Vietnam still offers huge opportunities to foreign companies to be involved in this market.
Q: What are the main areas in the MOU between VARANS and Lightbridge Corporation in the Comprehensive Cooperation in the field of Radiation and Nuclear Safety for the Peaceful Use of Nuclear Energy?
Mr. Seth Grae: Lightbridge will work in six areas to support VARANS that are all subjects of in-depth experience of Lightbridge experts. We expect to start with assistance in furtherance of the legal and regulatory infrastructure for radiation and nuclear safety.The second area of our support is further development of the Integrated Quality Management system.
The third is support to the main nuclear regulatory activities, including reviews and assessments, licensing and authorization, inspection and enforcement, and the very important area of training.
The fourth area of support is in administration and finance, including human resources, document control, and license fees and billing. The fifth area is support in international and governmental affairs, including the very important area of transparency and public information.
And finally the sixth category of support by Lightbridge Corporation to VARANS is for nuclear safeguards and security, and regulatory activities for import and export of nuclear and radioactive materials.
Q: Lightbridge is the first U.S. company to work with VARANS on Vietnam’s nuclear energy program. What are the meanings of this MOU?
As CEO of a leading nuclear energy consulting company, Mr. Grae was part of a Civil Nuclear Trade Policy Mission to Vietnam and China in May 2013 that was organized by the U. S. Department of Commerce’s International Trade Administration. He is also a member of the U.S. Department of Commerce Civil Nuclear Trade Advisory Committee.
Mr. Seth Grae: This MOU recognizes Lightbridge’s global expertise in developing effective support infrastructure for non-proliferative, commercial nuclear energy programs and is another important step in Vietnam’s drive to deliver clean, safe, affordable nuclear energy to support the nation’s economic growth.
Commercial nuclear energy opportunities in Vietnam are estimated at $10 billion and are expected to grow to $50 billion by 2030, according to U.S. Department of Commerce estimates.
The second largest nuclear power market in Southeast Asia after China, Vietnam has declared its intention to supply more than 10% of national power demand from nuclear by 2030. Vietnam currently generates 32 GWe of electricity from hydro, coal and natural gas power plants. Plans call for construction of four nuclear reactors at two sites beginning later in this decade to generate approximately 4 GWe of electricity, according to the most current data compiled by the World Nuclear Association.
This MOU provides a framework for Lightbridge’s advisory service team to support VARANS under specific tasks as VARANS seeks to implement best practices in nuclear regulation, licensing, inspection, and education and training activities. Lightbridge has generated more than $52 million in advisory services revenue since 2008.
Q: Can you share information about Lightbridge and its business activities?
Mr. Seth Grae: Lightbridge is a U.S. nuclear energy company that is developing patent-protected, proliferation resistant, next generation nuclear fuel technologies for current and future nuclear reactor systems.
The Company also provides comprehensive advisory services in several countries around the world for established and emerging nuclear programs based on a philosophy of transparency, non-proliferation, safety and operational excellence.
Lightbridge’s breakthrough fuel technology is establishing new global standards for safe and clean nuclear power and leading the way to a sustainable, carbon-free energy future.
Lightbridge consultants provide integrated strategic advice and expertise across a range of disciplines including regulatory affairs, nuclear reactor procurement and deployment, reactor and fuel technology and international relations.
The Company leverages those broad and integrated capabilities by offering its services to commercial entities and governments with a need to establish or expand nuclear industry capabilities and infrastructure.
Xuan Huy