SA's nuclear plans fire up French companies
February 20, 2007
By THABANG MOKOPANELE and NTEBO MMOPE
Johannesburg - Leading French nuclear companies are circling power utility Eskom, hoping to get in on the construction of the next conventional nuclear plant in the Western Cape.
Industry speculation is that Areva, the company that built South Africa's first and only plant at Koeberg, is prepared to take a stake in the development of the fourth-generation pebble bed modular reactor programme in exchange for the contract to build the country's second conventional nuclear plant.
The news follows hard on the heels of the nuclear programme proposed last week by Alec Erwin, the minister of public enterprises.
The programme, which includes the construction of 12 conventional and 24 pebble bed reactors, could cost more than R900 billion.
The second conventional power station, expected to be built near Koeberg, could cost as much as R70 billion, according to Brian Dames, the managing director of Eskom's enterprise division. The pebble bed pilot project is expected to cost R16 billion and units are expected to cost more than R2 billion each.
Tom Ferreira, the communications manager of the Pebble Bed Modular Reactor Company (PBMR), said the country would like to establish a nuclear industry that was part of the world market from day one.
He said PBMR would like to discuss with international companies such as Areva ways in which they could help the country develop heavy and precision engineering operations in the country that could help the pebble bed project create up to 56 000 permanent jobs.
"PBMR and the nuclear industry in the country are therefore going to seek manufacturers that can supply as part of the global supply chain. To this end, a national effort has been launched to upgrade the nuclear industry's manufacturing capabilities in South Africa," Ferreira said.
Over the past 26 years, Areva has continually delivered products, technical support and services to Koeberg. Fuel has been imported from Europe since the 1990s.
French minister of industry Francois Loos said yesterday that France was interested in the pebble bed programme.
Loos said another French nuclear company, Alstom, was also interested in South African technology for developing mini nuclear reactors. "Alstom is very much interested in this. It is a good method to reduce carbon dioxide emissions and an efficient way to generate electricity."
Loos said French energy companies were presenting offers to South Africa about its proposed new nuclear plant. "They already co-operate with South Africa over Koeberg," he said. Loos was speaking before a two-day nuclear conference that starts in Cape Town today.
Ferreira said US nuclear company Westinghouse, a pebble bed technology company, was one of the investors in PBMR. Westinghouse has decided to take over the 15 percent shareholding previously held by UK government-owned British Fuels.
PBMR's other investors are the South African government, Eskom and the Industrial Development Corporation.
"For a couple of years we held discussions with French group Areva exploring the possibility of them getting involved, but up to now there has not been specific development," Ferreira said.
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