No wonder the nuclear industry has been so laid back! They knew all along they were going to get more cash. Sonjica says “manufacturing capacity is currently being developed by Necsa.”

And Rob Adam says: “We’ve been given the money to establish a National Nuclear Manufacturing Centre (NNMC).”

They are going to get R10 million a year over the next three years to build nuclear reactors! They are going to build these at Necsa’s Pelindaba complex including Fabritek an existing design centre, and Necsa’s current fuel manufacturing activites at the Safari-1 research reactor.

The PBMR company is not worried because they see themselves as an added extra to other bigger nuclear reactors – not the main source of nuclear power. They say the PBMR is what they call a “fourth-generation” High Temperature Reactor (HTR) whereas what they want to build is “third generation” PWRs.

Adams says South African companies are finding it hard to manufacture to nuclear specifications so instead “money that we had hoped would be spent in South Africa will have to be spent abroad.”

Although only one new nuclear power plant has so far been announced – with no indication yet of where it will be built (except that it will be in the south of the country) – a major nuclear building programme is likely in the coming years.
The PBMR is not equivalent to a third generation PWR; the PBMR is a small reactor. PBMRs will be used more for “process heat applications.”

This article stresses that nuclear energy is “green” and goes out of its way to explain that the nuclear industry overseas is expanding and more people are working in it – which we know is just not true.

Regards
Ingela Richardson

SA’s Reliance on Nuclear Energy Set to Increase 9 March 2007
Author/Source: Keith Campbell Engineering News
South Africa is set to increase its reliance on nuclear power.

So said President Thabo Mbeki in his recent State of the Nation address.

And so has confirmed Minerals and Energy Minister Buyelwa Sonjica.

“We all recognise the need to diversify energy supply by developing advanced, non-polluting, more efficient, affordable and cost-effective technologies, including renewable energy technologies to meet the rising global demand for energy …. When looking at these alternative energy sources, an increasing number of countries, including South Africa recognise the role that nuclear energy can play in the reduction of greenhouse gas emissions,” she said in a speech to South Africa’s Nuclear Energy and Uranium Renaissance Conference on February 14.

“In preparation for the expanded nuclear energy programme …. My department is finalising a Nuclear Energy and Technology Strategy which will outline a vision for nuclear energy in South Africa …. A Nuclear Build Programme of the magnitude that is planned will necessitate an investment in uranium beneficiation,” she reported.

(The new Nuclear Energy and Technology Strategy should be presented to the Cabinet in the near future.) “A nuclear power generation industry of the magnitude that we are planning requires a shift in the mindset of all roleplayers in the nuclear sector,” she emphasised.

The Minister stressed the need to ensure safety in the pursuit of all the country’s nuclear objectives, called on the National Nuclear Regulator (NNR) to strengthen its capacity to evaluate different technologies, and gave the assurance that South Africa will continue to meet its nuclear non-proliferation obligations.

“The days of talk shops on nuclear issues amongst peers are over …. South African companies must position themselves to play a role in this programme,” she asserted.

“We are going to invest in nuclear research and development as well as nuclear manufacturing capability.” “This nuclear manufacturing capacity is currently being developed by Necsa,” added Sonjica.

(Necsa is the South African Nuclear Energy Corporation.) “We’ve been given the money to establish a National Nuclear Manufacturing Centre (NNMC),” explains Necsa CEO Dr Rob Adam.

This funding amounts to R10-million per year over the next three years (including this year); hopefully, this will just be the first tranche.

The new Centre will be based upon existing facilities at Necsa’s Pelindaba complex (located west of Pretoria) including Fabritek (which was the manufacturing component of the old Atomic Energy Corporation), an existing design centre, and Necsa’s current fuel manufacturing activites at the Safari-1 research reactor.

“We are working with companies like IST, PBMR, and Dorbyl, to enlarge and develop our capabilities,” says Adam.

”The NNMC would be able to maintain standards in the local industry and help with technology demonstrators for our nuclear sector,” he highlights.

“What we have discovered is that South African companies are finding it hard to manufacture to nuclear specifications, and we fear that, when the building of new nuclear power stations starts, local companies will find it difficult to respond and money that we had hoped would be spent in South Africa will have to be spent abroad,” he elucidates.

“This Centre would both do its own manufacturing and help other South African companies to meet the required standards and be able to manufacture for nuclear,” he assures.

Although only one new nuclear power plant has so far been announced – with no indication yet of where it will be built (except that it will be in the south of the country) or by who – it is clear that a major nuclear building programme is very likely in the coming years.

By 2025, Eskom will need generating capacity of between 60 000 MW and 80 000 MW (depending on the national economic growth rate). The utility has already stated that it wants 30% of its generating capacity, amounting to between 18 000 and 24 000 MW, to be non-coal.

Some of this non-coal generation capacity will also be non-nuclear but, Adam argues, “if we want to diversify away from coal, we don’t have any real alternative for base load other than nuclear.” Although nuclear plants are much more expensive to build that coal- or oil- or gas-fired power stations, they are vastly cheaper to run.

So, measured in lifecycle costs, nuclear is the cheaper option, even given rising uranium prices.

Thus it looks as if this country will have some 12 000 MW to 20 000 MW generated by nuclear power by 2025, or between 20% and 25% of the national total.

Today, the country’s only nuclear power plant, Koeberg (which has two reactors), has a capacity of 1 840 MW, amounting to 6,5% of the national total.

It is these figures which imply a major nuclear building programme.

And the timescale is such that most will have to be third-generation pressure water reactors (PWRs); South Africa’s own, fourth-generation, Pebble Bed Modular Reactor (PBMR) will not be available before 2015.

Where Does the PBMR Fit In?

The PBMR company is not in the least worried by this.

“The PBMR is very important for the South African nuclear sector because it is a fourth-generation High Temperature Reactor (HTR) and the world will be moving to fourth-generation HTRs over the coming decades,” points out PBMR business development and operations GM Dr Adi Paterson.

“But, from the South African point of view, it makes sense to go to third generation PWRs now; they are much safer than the second generation plants, and third generation plants are now being built, such as Areva’s European Pressure Reactor in Finland, and Westinghouse’s AP1000 in China – these signal that the world is ready for the third generation, and South Africa should be as well,” he argues.

“We’re excited that third generation nuclear technology is coming to South Africa – it will strengthen our nuclear sector,” he affirms.

“If South Africa should build ten PWRs, then we could copy South Korea and indigenise the industry, which would be very good for the local nuclear sector and for the PBMR.” “The PBMR is not equivalent to a third generation PWR; the PBMR is a small reactor which would go to key locations for niche applications – what we call ‘smart power ‘ – so it is not a rival to third generation PWRs, but a compliment to them,” he asserts.

“PBMRs will be important for the electricity market but they will be more important for process heat applications,” he points out.

There is a further dimension to the issue, Paterson cites – if the country builds a signifcant number of reactors, then there will be a need to ensure security of fuel supply.

One of the options to achieve this would be for the country to reinstate production of nuclear fuel, although in a “modern, civilian, manner.” This would also bring benefits in terms of the beneficiation of the country’s uranium.

“Just generally, I think that the PBMR’s role has been to create a tremendous interest in South Africa as a modern nuclear nation,” he highlights.

There is great value in developing nuclear weapons proliferation proof reactors.

Fourth generation nuclear reactors are not developments of the third generation, they are totally new – proliferation proof; much smaller; much cheaper; and they produce much less waste.

“Fourth generation HTRs will give many small countries the opportunity to go nuclear and produce green power – we’re especially interested in this with regard to Africa; supplying PBMRs to produce green power for Africa is part of our vision,” he says.

Legislation and Regulation But expanding the country’s nuclear sector is not just a matter of technology; it is also a matter of legislation and regulation, and work has to be done here as well.

“There are currently lots of gaps in South Africa’s nuclear legislation and regulation,” warns Bowman Gilfillan Attorneys partner and head of environment, energy, and natural resources practice area Claire Tucker.

Until now, South Africa’s nuclear sector has been very small, with a limited number of players and a very limited number of installations.

“This has allowed an ad hoc apporaach to regulation which simply focuses on the handful of installations,” she points out.

“So, in addition to issues such as the size of the future nuclear sector, the new nuclear strategy and policy now being developed must also deal with how this larger nuclear industry is going to be supported through legislation and regulation,” she stresses.

Currently, the primary legislation through which the local nuclear sector is regulated is the NNR Act.

“This Act, at present, is really only the bare bones of what is needed,” she affirms.

At the moment, with regard to the nuclear licence application process, there is no detailed standard framework for an applicant to adhere to.

“Rather, each applicant has to engage in a protracted negotiation process with the NNR over the content required by the NNR for that particular application,” explains Tucker.

“The difficulties with this kind of process are obvious – for investors, there are no certainties on how the licence application process would develop, or what problems could arise,” she cites.

”After extensive consultation with their industry stakeholders, the US and UK are moving to ensure a standard, clear, predictable, process, and South Africe needs to do the same.” The US now has a system of staged or phased authorisations.

That is, one can get a licence confirming the suitability of a site for a nuclear reactor not only before one actually decides to build that reactor, but before the choice of design for the reactor is made.

This process includes final environmental approval for the site and the plant parameters proposed.

Or alternatively, one can get a licence for a design of a nuclear reactor before one selects a site on which to construct it.

(Of course, before construction starts, the investor must have the necessary authorisations for both the site and the reactor.) There are a limited number of sites in South Africa which are suitable to build a nuclear reactor, so this scarce resource must be protected.

In addition, being able to identify, secure, and licence a nuclear site in advance of a decision to build a reactor gives an investor greater security and flexibility.

“South Africa needs to have this – I think there is room within the existing Act for the separate licensing of the site, but additional legislative support for the early identification and protection of suitable sites is needed,” opines Tucker.

Another problem is nuclear liability (see also Engineering News March 2, 2007); South Africa is not yet a party to the international conventions concerning nuclear liabilities and, although in general this country follows the practice of these conventions, there is one very important exception.

In this country, the State does not act as the insurer of last resort to cover liabilities arising from nuclear damage that exceed the securities held by the nuclear operator, nor does it have a statutory insurance scheme.

So suppliers of specialised nuclear equipment and components are concerned that liabilities arising from nuclear damage could be passed on to them, should the operator be unable to pay and the State refuse to pick up the tab.

(Nuclear operators are strictly liable for damage caused by their operation; there is no need for a claimant to prove negligence in order to succeed with a claim for nuclear damage.) So the international companies – and there are not many of them – which supply key components to the nuclear industry are asking for their South African clients to provide them with indemnities over and above those provided for in the NNR Act, to cover any nuclear damage claims that could arise in this country.

The cost implications are obvious.

“South Africa needs to address this,” she urges.

Then there is the issue of skills.

“The nuclear industry is growing worldwide, so there is global pressure on skills,” highlights Adam.

“We’re considering bringing back pensioners and we’re not the only country thinking of this – in most of the world nuclear has gone from being seen as a sunset industry to being the new green alternative in just five years,” he points out.

“There are also bottlenecks in the international supply chain for specialised components – for example, we won’t be manufacturing reactor pressure vessels in South Africa and worldwide there are only a handful of companies that do, so there is pressure on supply,” he adds.