http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.08Change: 0.05
R/$ = 14.96Change: -0.04
Au 1282.76 $/ozChange: 4.64
Pt 1069.00 $/ozChange: 14.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 31, 2008

Areva, Westinghouse submit bids for Eskom's big nuclear expansion

Back
Construction|Expertise|Africa|CoAL|Contractor|Engineering|Eskom|Exploration|Industrial|Mining|Nuclear|Power|PROJECT|Solar|System|Technology|Water|Africa|Energy|Manufacturing|Service|Services|Environmental
Construction|Expertise|Africa|CoAL|Contractor|Engineering|Eskom|Exploration|Industrial|Mining|Nuclear|Power|PROJECT|Solar|System|Technology|Water|Africa|Energy|Manufacturing|Service|Services|Environmental
construction|expertise|africa-company|coal|contractor|engineering|eskom|exploration|industrial|mining|nuclear|power|project|solar|system|technology|water|africa|energy|manufacturing|service|services|environmental
Rival nuclear vendors Areva of France and Toshiba's Westinghouse, of the US, confirmed on Thursday that they had submitted bids to South African power utility Eskom, which initiated an "invitation to negotiate" with the two companies in November last year.



In a statement, Areva said it had formed a consortium comprising South African engineering and construction group Aveng, French contractor Bouygues and the world's leading nuclear-energy utility EDF, also of France.

Areva South Africa chairperson Dr Serge Lafont told Engineering News that its submission related to the so-called ‘Nuclear-1' programme, which could involve the construction of a two-unit nuclear power plant, with a capacity of between 3 000 MW and 3 500 MW.

The project's capital cost is estimated to be between R100-billion and R120-billion, but this figure could not be confirmed.

Lafont said it also planned to submit a second bid later this year for the possible ‘fleet' strategy by Eskom, which might result in the construction of 20 000 MW of nuclear capacity by 2025.

Meanwhile, Westinghouse CEO Rita Bowser confirmed with Engineering News that it too had submitted a bid on Wednesday, a day ahead of the January 31 deadline, and that Eskom had confirmed acceptance of the bid on Thursday.

She said that its consortium comprised Westinghouse, South African engineering contractor Murray & Roberts and US construction group Shaw.

Bowser indicated that it had decided to make a combined bid, covering both Nuclear-1 and the larger fleet strategy, but that it refrained from making a formal statement given nondisclosure stipulations.

Areva would offer its so-called third-generation EPR technology, which is currently under construction in Finland and France, while Westinghouse will be offering its latest-generation AP1000 pressure water reactor, which is likely to be built in the US and China.

In its statement, Areva says it is proposing a "global partnership" between South Africa, Eskom and its French-heavy consortium covering the construction of EPR reactors and the joint development of a South African nuclear industry.

"The second element of the partnership relates to the long-term development of South Africa's nuclear industry. Areva plans to invest alongside national players. In addition, the group offers its expertise in all aspects of the nuclear fuel cycle," the company said.

Meanwhile, Engineering News has reported previously that Westinghouse also planned to make material "localisation" commitments.

In fact, Bowser said that exploration of domestic manufacturing opportunities was a key focus, given that these are likely to be a critical adjudication factor in any upcoming Eskom tender.

Eskom itself has a stated ambition of maximising the local content of its capital programme, and has incentivised its management in a way that embeds local content as a key performance indicator.

The utility has also applied to participate under the so-called Competitive Supplier Development Programme, which will allow it to pursue local content opportunities without the constraints associated with the National Industrial Participation Programme, or NIPP.

Both companies have already moved to deepen their domestic footprints, with Areva having already taken a 51% stake in Lesedi, a black economic-empowered energy services company, while sustaining key skills in the country to service Koeberg, South Africa's only nuclear facility at present. The French group also has uranium exploration and development interests the country through a mining enterprise known as Uramin.

Westinghouse, meanwhile, recently acquired South Africa's IST Nuclear (ISTN) in a bid to materially increase its domestic presence. The company has since been rebranded as the Westinghouse Electric Company South Africa.

Bowser insists that similar localisation programmes have been pursued in China, Korea and Spain, where local manufacturers have actively participated in domestic build programmes, and have been integrated into the larger Westinghouse supply chain.

Eskom and government have committed to adding a significant level of nuclear capacity to its power system in a bid to sustain low operating costs, while reducing its carbon footprint.

Five sites are being considered, including Oyster Bay, Peraly Beach, Bantamsklip, the current Koeberg site, and Kleinzee, and environmental-approval processes are under way.

There is likely to be stiff opposition from some antinuclear and environmental groups, which believe the technology to be fundamentally flawed and dangerous. Others have argued that Eskom has simply not given the same level of attention to other carbon-free alternatives, such as large-scale wind and solar power before embarking on an atomic-energy course.

However, Eskom argues that, while nuclear is expensive to build, it is vastly cheaper to operate, and, at this stage, provides the only true low-carbon alternative to coal.

Edited by: Terence Creamer
Creamer Media Editor

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Article contains comments
State-owned electricity utility Eskom this week claimed that there had been a steady improvement in the energy availability factor (EAF) at its power stations, reporting “preliminary figures” indicating an EAF of 76.37% from the start of its financial year to May 3,...
US Democratic presidential front-runner Hillary Clinton on Monday began a two-day tour through rural, traditionally coal-reliant parts of the eastern Appalachian region, where Republican rival Donald Trump's pro-coal, anti-trade message has resonated with...
Article contains comments
More
 
 
Latest News
Redefine Properties CEO Andrew Konig
Updated 16 minutes ago Despite the headwinds facing the South African economy and ongoing political uncertainty, real estate investment trust Redefine Properties delivered a “robust performance” in the first half of the financial year, with a distribution of 41.7c for the six months to...
Mark Barnes
Updated 32 minutes ago Less than one percent of staff stayed away from work on the first day of a strike by members of the Communication Workers Union (CWU), the SA Post Office said on Thursday. CEO Mark Barnes said it was “business as usual” as the first day of the strike had had a...
Former Denel CEO Riaz Salojee
Updated 43 minutes ago Denel’s board said Finance Minister Pravin Gordhan’s accusation that the board and executives are “arrogant and belligerent … are unsubstantiated, baseless and unfounded”. Gordhan made the accusation during his Treasury budget debate in Parliament on Wednesday. This...
More
 
 
Recent Research Reports
Energy Roundup – May 2016 (PDF Report)
The May 2016 roundup covers activities across South Africa for April 2016 and includes details of the National Energy Regulator of South Africa’s proposal to introduce a coal benchmark cost as part of its final decision on Eskom’s multiyear price determination...
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149