Bahrain is exploring the use of nuclear power for domestic consumption as well as for potential export of surplus, with state energy conglomerate Bapco Energies tasked with studying the prospect of building a modular nuclear power plant.

According to sources, the proposed project is being led by BeVentures, the venture capital arm of Bapco Energies, which was launched in July 2024.

Under the plan being studied, power to be produced by the nuclear facility will be supplied mainly to major industrial complexes in the kingdom, such as Aluminium Bahrain (Alba) and Bapco Refining, for clean production of aluminium and refined products, respectively, in line with Bahrain’s ambition of achieving net-zero emissions by 2060.

BeVentures, has in turn, approached reputed global consultancy firms such as Bechtel, Fluor, Kent, Technip Energies and Wood to assist with concept study and early-stage planning and assessment of the modular or small nuclear power project.

Bapco Energies and BeVentures are also considering tapping into private financing and/or equity partnerships, in part or in full, for the proposed project, sources told MEED.

Bapco Energies did not respond to MEED’s request for comment and additional information on the proposed modular nuclear project.

Mark Thomas, the group CEO of Bapco Energies, had told MEED in an interview in April last year that BeVentures was considering investments in “….new technologies that can both help existing business, as well as prepare…for the future, for the energy transition.” 

“We’re looking at opportunities principally within our existing businesses around oil and gas production, refining and petrochemicals. But we’re also looking at elements that will prepare us for the future, more into renewables,” Thomas had said, without explicitly mentioning nuclear power.

Case for nuclear power

The kingdom’s desire to explore nuclear power has primarily been exacerbated by the limitations of its hydrocarbons endowment. Given its small territorial size of just 786 square kilometres, Bahrain holds relatively modest hydrocarbon reserves compared with its Gulf peers.

The kingdom produces just 200,000 barrels a day (b/d) of oil, with its own Awali field, also known as the Bahrain field, only contributing an output of 42,400 b/d approximately.

The majority of Bahrain’s crude production of about 145,000 b/d comes from the offshore field of Abu Safah, which is located in Gulf waters between Bahrain and Saudi Arabia, and is, hence, shared between Bapco Energies subsidiary Bapco Upstream and Saudi Aramco.

Bapco Energies has been in constant pursuit of additional resources to boost its oil and gas production. However, the discovery of the Khalij al-Bahrain basin in 2018, its biggest find in decades, which was estimated to contain 80 billion barrels of oil and 10-20 trillion cubic feet of gas, has failed to live up to its promise. Other smaller exploration efforts with foreign players too are yet to yield desired results.

The kingdom, therefore, remains heavily reliant on its bigger neighbour Saudi Arabia for oil and gas supplies, and imports about 350,000 b/d from Aramco via the AB-4 pipeline.

On the other hand, given its stringent environmental sustainability targets, other forms of renewable energy, mainly solar, are not going to be able to help Bahrain become net-zero by 2060.

Bapco Energies published emissions-reduction targets in July 2023, in one of the most detailed disclosures by any state energy enterprise in the GCC. It has also brought on board advisors including Boston Consulting Group to devise a strategy to achieve its environmental goals and Standard Chartered Bank to support the financing requirements.

Using 2017 as a baseline year, Bapco Energies has committed to reducing absolute Scope 3 emissions in Bahrain by 30% by 2035, and to reaching net-zero Scope 3 emissions by 2060.

In addition, Bapco Energies lists its Scope 1 and 2 net emissions intensity reduction targets, also using 2017 as a baseline, as 15% by 2025, 25% by 2030, 30% by 2035, 50% by 2040 and 75% by 2050, to eventually reach net zero Scope 1 and 2 emissions by 2060.

Bahrain has been doing the groundwork that would enable it to tap into nuclear power for household and industrial needs in future.

The kingdom is already operating under a Country Programme Framework (2024-2029) with the International Atomic Energy Agency (IAEA). This establishes the regulatory and safety benchmarks necessary before any commercial reactor construction begins.

Additionally, in July last year, Manama signed a major civilian nuclear cooperation memorandum of understanding with the US. Financed under the US Foundational Infrastructure for Responsible Use of Small Modular Reactor Technology (FIRST) programme, this partnership provides Bahrain with advanced technical expertise to develop secure, weaponisation-free civil nuclear infrastructure.

Small modular reactor (SMR) technology could be the most viable pathway forward for Bapco Energies in its quest to generate domestic nuclear power. Unlike conventional, large-scale and cost-intensive gigawatt reactors, SMR units, which typically have a capacity of under 300MW, require just a fraction of the land area that equivalent solar fields occupy.