SA not promising nuclear contract (07 June 2011)

Track record of involvement in SA nuclear capability has led to expectations that French company Areva could build new Eskom plant

LINDA ENSOR
Published: 2011/06/07 06:39:13 AM

CAPE TOWN — SA’s close nuclear ties with France — consolidated during President Jacob Zuma ’s visit to Paris earlier this year — did not commit the country to acquiring a nuclear energy system from French nuclear company Areva, Energy Minister Dipuo Peters insisted yesterday.

France’s involvement in SA’s nuclear industry, which dates back to the construction of the Koeberg nuclear plant, has led to expectation that its nuclear company, Areva, would get the contract to build the new nuclear plant planned by Eskom.

Whichever company gets the contract, SA is likely to demand a transfer of skills and technology as part of the deal.
Germany last week became the world’s first industrialised nation to announce it would phase out its nuclear plants, following the disaster at Japan’s Fukushima Daiichi plant. This decision could damage Areva, one the world’s biggest nuclear engineering companies, in coming years.

Areva has expressed active interest in participating in SA’s nuclear build programme, which has to take off in the next year in preparation for the commissioning of a new plant in time to cater for expected energy supply shortages after 2020.

In terms of SA’s integrated resource plan, nuclear energy will contribute 23% of new energy sources by 2030.

Eskom is planning to submit a final environmental impact report for a 4000MW nuclear plant to the Department of Environmental Affairs later this year.

The company’s draft environmental impact assessment report, released earlier this year, identified three possible sites for SA’s next nuclear plant — Thyspunt in the Eastern Cape, and Duynefontein and Bantamsklip in the Western Cape.

Ms Peters said in a written reply to a parliamentary question by Congress of the People MP Smuts Ngonyama that the nuclear energy agreement signed with France in 1996 on the development and application of nuclear energy for peaceful purposes was under review — but no deal had been reached on a new plant.

While in France with Mr Zuma in March this year, Ms Peters and her French counterpart signed the "2011 Road Map" on institutional co-operation on energy.

It included an undertaking to explore an intergovernmental agreement on spent-fuel management, co-operation between the countries’ nuclear safety authorities, and implementation of the agreement on nuclear research and development between the Nuclear Energy Council of SA and its French counterpart.

Letters of intent and memorandums of understanding were also signed. Since these and the road map "do not commit to the procurement of a nuclear energy system, it cannot have a direct effect on our future energy needs with respect to nuclear energy", Ms Peters said in her reply.

"Indirect effects from research, collaboration and skills development will assist SA in increasing the localisation potential of our energy; reducing time scales and mitigation of risk for implementing waste solutions; and improving regulatory compliance and oversight."

During the visit to France in March, the South African Nuclear Energy Corporation signed letters of intent with the Atomic Energy Commission of France and Areva covering research and skills training respectively.

ensorl@bdfm.co.za