PBMR to run out of cash in 2010
February 19, 2009
By Justin Brown
Pebble Bed Modular Reactor (PBMR) will run out of money in about a year and must adapt its novel nuclear technology to make itself commercially viable.
Eskom and the Industrial Development Corporation hold an 85 percent stake in the joint venture, with the remainder held by US-based Westinghouse.
The project had spent R7.5 billion since its inception in 1999 and had R980 million left, PBMR spokesperson Tom Ferreira said. This would last until about March 2010.
The government has budgeted R9 billion to develop pebble bed nuclear reactor technology.
Ferreira said the company would shift its focus from using the modular reactor to generate electricity to building reactors that would also produce heat for industrial processes.
PBMR said: "One of the considerations is the modification of the design planned for the demonstration power plant at Koeberg, to also service potential customers such as the next-generation nuclear plant project in the US, oil sands producers in Canada, and Sasol."
Another potential application is the use of the reactor's waste heat for desalination.
Jaco Kriek, PBMR's chief executive, said talks were under way with suppliers to put certain contracts on hold to prevent unnecessary spending.
Bloomberg reported yesterday that PBMR would switch to conventional technologies to minimise costs and risk, citing a government official.
Chris Forlee, a public enterprises deputy director-general, told MPs in the standing committee on public enterprises that a new approach was being developed that would lead to standard nuclear processes being used, "reducing technology and licensing risk associated with a first-of-a-kind project".
Frost & Sullivan analyst Cornelis van der Waal said the halt to Eskom's nuclear programme was expected to delay the commercialisation of pebble bed reactors by up to four years.
The demonstration plant at Koeberg and the pilot fuel plant at Pelindaba were not likely to be affected by Eskom's conventional nuclear review, he noted.
But the commercialisation of the technology and its use by Eskom could be delayed.
The shortage of funding meant Eskom was likely to focus on proven technologies.
Eskom spokesperson Tony Scott said the utility's nuclear programme was a separate process from the PBMR project.
In February 2007 PBMR said that the commissioning of the first commercial pebble bed plant was scheduled for 2016.
Van der Waal said nuclear plans would be revisited when new coal-fired power stations came on stream in 2012 or 2013.
Westinghouse was one of two bidders for Eskom's second conventional nuclear station.
In February 2008 Kriek said that the construction of the demonstration reactor and pilot fuel plant could cost R16 billion. The demonstration plant could be commissioned in 2014.
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