Nuclear technology developer Stratek Global has secured a deal with the directors of Zilkaats Estate for land on which to build a small modular nuclear reactor (SMR), the first of its kind in the country.
The site, on the border of Gauteng and North West, represents a R5.7bn investment and has a large residential section, a light industrial area and an airfield.
According to Stratek Global, roads and services have already been laid out and the regulatory compliance process is under way.
Stratek Global co-founder Olivia Vaughan told Business Times the 2,000ha property is the same size as the Pelindaba site, headquarters of the Nuclear Energy Corp of South Africa, close to Hartbeespoort Dam.
We have one of the oldest nuclear regulators in the world, which is internationally recognised as being very competent, so we do not envisage any problems in working through the various steps together with them.
— Olivia Vaughan, Stratek Global co-founder
She said the SMR would provide a reliable source of electricity to power expansion plans for the estate, and Zilkaats liked the idea of becoming a world centre for modern nuclear reactor construction.
“They are intrigued by the idea of being an export centre for South African-designed and built SMRs,” she said.
Vaughan said Stratek Global was still working on the detailed design of its SMR.
“This will establish the actual practical operation of our plant, enabling the design philosophy and practical demonstration to further potential clients, who are very interested in our SMR concept.
“We have one of the oldest nuclear regulators in the world, which is internationally recognised as being very competent, so we do not envisage any problems in working through the various steps together with them.”
Kelvin Kemm, chair of Stratek Global, said South Africa had been the first to start developing a commercial SMR and was internationally recognised as being a world leader in the field.
“Over the past year there has been a massive worldwide move towards building these advanced innovative reactors. South Africa is now in a position to capitalise on this lead, and to become a world exporter of nuclear power,” he said.
Gabriel Mokgoko, chair of Zilkaats, said: “Not only do we need this electricity to develop the Zilkaats site to its full potential, but we also recognise the financial potential of getting into this exciting development.”
The World Bank last month announced that it would lift its ban on the financing of nuclear energy projects. This departure from a policy that has been in place since 1959 comes in response to growing demand for reliable, clean energy access, including in the energy-starved Global South.
Deputy minister of electricity & energy Samantha Graham-Maré said the World Bank move and a resurgence in nuclear projects globally created “exciting” prospects for nuclear technology and energy in South Africa and the continent.
“Nuclear is a wonderful baseload. The fact that everybody has gotten over this [idea that] nuclear is so dangerous is amazing, because it is now being recognised as a clean energy [source]. There are 61 nuclear power plants being built at the moment throughout the world.”
The challenge with nuclear energy, however, was the capital cost, she said. Once a plant was operational and the capital expenditure had been covered, it was “the cheapest and the most stable energy supply you can get”.
“I think now with the World Bank having lifted that ban, that’s going to go a long way to making nuclear part of the African reality, which is very exciting,” Graham-Maré said.
Internationally, nuclear was seen as potentially the greenest energy available today, delivering full daily power as baseload.
“We value this philosophy, as we have seen the absolute disaster in Spain, Portugal and France,” she said, referring to the major blackout on the Iberian peninsula in April.
“A balanced stack of liquidity from development finance institutions, private equity, and capital markets is the current focus of [the] source of capital.”
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