New nuclear programme localisation target likely to be 50%

24th June 2016

By: Keith Campbell

Creamer Media Senior Deputy Editor

  

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The South African government is looking at securing a local content level of 50% in the country’s proposed new nuclear power plant (NPP) programme. This was stated recently by South African Nuclear Energy Corporation (Necsa) board chairperson Dr Kelvin Kemm at a press briefing at the Necsa complex at Pelindaba, west of Pretoria. “For [the] Koeberg [NPP] there was no localisation requirement, but 43% was achieved,” he highlighted.

Regarding the likely cost of the new programme, still officially intended to construct 9.6 GW of new nuclear generating capacity, Kemm affirmed that the most detailed analyses undertaken had indicated that it would be around R650-billion. And 50% local content would mean that half this figure would be spent in South Africa. No one had yet, despite his requests, been able to provide him with any analyses supporting the widely publicised figure of R1-trillion as the cost of the new NPPs.

“We’re not going to buy these NPPs all at once,” stressed Necsa CEO Phumzile Tshelane at the same briefing. “By the end of the programme, you’ll find that the programme is funding itself.” The programme should see the construction of three new NPPs with a total (depending on the design chosen) of six to nine reactors. “By the time construction of the third NPP begins, the first would be operational and generating income. This income stream from the first NPP could be used as collateral to refinance the NPP programme, reducing its costs.

“Necsa has conducted a preliminary new build readiness assessment for the planned nuclear reactor fleet,” he reported. “We will be the anchor for [local] nuclear manufacturing.” The corporation would support other local companies entering the nuclear manufacturing sector, as well as doing some manufacturing itself. Necsa already has ASME III N Stamp and ASME VIII U Stamp certification for nuclear manufacturing and can provide training for scientists, engineers, technicians and artisans. Nuclear manufacturing activities at Pelindaba started as long ago as 1962 and continue today.

“I think 50% [localisation] is achievable,” Kemm told Engineering News. “I think the ideal level would be 50% . . . 60%, producing some products very well and exporting them to the world, and buy [other products] from others [abroad] and collaborate with others. “As a nation, we need to build up our own self-confidence. We have a large number of highly competent companies scattered across the country who do not realise they can get involved in nuclear. It must be a major private enterprise project.”

Separately, national electricity utility Eskom has announced that it started training some 100 recruits as nuclear operators on May 1, under its Nuclear Project 100 initiative. The training is taking place at the Koeberg NPP, near Cape Town. The training programme is accredited by the National Academy of Nuclear Training (NANT), an initiative of the US-based Institute of Nuclear Power Operators. This ensures that the Koeberg programme is of the highest standard. Koeberg is the only NPP outside the US whose training programme is accredited by the NANT

“We support national initiatives like the National Development Plan to build skills among the youth of South Africa for Eskom, as well as the country’s needs,” stated Eskom board chairperson Dr Baldwin Ngubane. “The country’s new nuclear build will require additional resources for operations and the nuclear operator training programme is geared towards ensuring that the South African youth who has aspirations to access a career path in nuclear has a chance at realising his or her dreams.”

(Dr Kemm is also a columnist for Engineering News.)

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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