T h e F u t u r e o f N u c l e a r E n e r g y i n S o u t h A f r i c a

S h a n e P e r e i r a – 2 2 n d M a y 2 1 0 5

Koeberg circa 1980

Koeberg Today

NECSA Research Reactor

Why Nuclear Energy makes Sense for SA• South Africa is committed to reducing its GHG

emissions by 34% by 2020. (progress made?)

• Nuclear Energy is Clean Base-Load Power and

capable of making the greatest impact on CO₂ <

• Unpacking the nuclear spend: Capex + Owners

Costs + Cost of Capital (Spread over 15 Years

with early recoveries from generation income)

• Fuel Security – SA Uranium Reserves are No7 in

the world. On-site fuel storage long-term supply.

• SA’s Grid is capable of accommodating large scale

NPPs which is unique for Africa and cost effective.

• South Africa has an established Nuclear Energy

industry with world-class education facilities.

• Our base-load supply capacity is currently under

pressure, with some medium term relief but retiring

~20GW of base-load capacity from 2025 to 2035.

Nuclear Energy could be a perfect replacement.

A Construction Perspective on a

Nuclear Build Program in South Africa

• Nuclear Power Plants are 50% conventional

construction and 50% nuclear construction.

• World class construction standards are

being developed on Medupi and Kusile.

• Nuclear Construction requires a new level of

quality, codes and specifications to

guarantee “Nuclear Safety”.

• The development of these nuclear quality

standards has been achieved by a top

South African construction company.

• Preparation of SA industries for nuclear

grade manufacturing and construction will

take 3 to 4 years for localisation.

• The industry nuclear readiness program will

be influenced by the nuclear vendor country.

• Lessons Learned from international nuclear

build programs will benefit South Africa

1. Reactor Pressure Vessel

2. Primary Pump

3. Pressuriser

4. Steam Generators x 3

5. Steam Turbine6. Accumulator

7. Condenser

8. Generator

9. Transformer & Switchyard

10. Fuel Storage & Pool

11. Fuel Handling System

12. Inner Containment Building

13. Outer Containment Building

14. Fuel Storage Building

15. Turbine Building

16. Deaerator Storage Tank

17. Control Room

18. Emergency Generator

19. Balance of Nuclear Island

20. Polar Crane

20

Nuclear Island (35%) (Q1)Primary Circuit

Balance of Nuclear Island (40%)

(Q1/L1)

(Q1/L2)

(Q1/L3)

Conventional Island (50%) (Q2)Secondary Circuit

Balance of Plant (70%) (Q3)Tertiary Circuit

• Local and Int. Nuclear Regulatory Requirements

• Nuclear Construction Codes and Int. Partners

• A Mature Nuclear Safety Culture

Conventional ConstructionNuclear Construction

Localisation to date at

Koeberg Nuclear Power

Stationsince the early 1980’s

Localised Nuclear Projects

Eskom:– Structured organization

– Services and projects outsourced to contractors

– Contractors able to cross skill for other industries (local and abroad)

Contracts for various scopes of work (flexible):– Various projects / modifications/ services outsourced to contractors at Koeberg

Nuclear Power Station

General Outage Activities at Koeberg (various contractors):– General maintenance activities

– Electrical and wiring Services

– Rigging and Welding activities

– HVAC maintenance

– Supply of Radiation Protection personnel

Nuclear Projects and Successful Execution – Strong organisaltional Nuclear Culture across the supply chain (RD-0034)

– Competence and experience is fundamental

– Processes, documentation, certification, authorisation and implementation

– Do it right first time, cost of quality is significant!

Current: PTR Tank Replacement

• Lesedi and Group Five (consortium) were awarded a contract with Eskom for the replacement of two large stainless steel tanks at Koeberg.

• The total scope of the project is divided into 5 packages, of which Lesedi and Group Five obtained package 1 (tank replacement) and package 4 (decontamination and waste disposal). This constitutes ±80% of the total project value.

• Lesedi is the lead consortium partner. AREVA, Lesedi’s main shareholder and OEM at Koeberg are subcontractors to the consortium, mainly for the tank design scope.

Current: Steam Generator Replacement

• Replacement of 6 Steam Generators – Lesedi lead in local consortium to AREVA

– Scope• Engineering and design with regard to the consortium

responsibilities

• All site related works for the removal and replacement of the steam generators

– SG supports & primary pipe supports removal and replacement

– Clamping (temp support) installation & removal for primary pipes

– Concrete Core Drilling of all holes required & closing holes afterwards

– Site Electrical (temporary supply & electrical interferences) requirements

– New SG preparation – Provide Artisans / semi-skilled

– Site Establishment (Provision of offices, furniture, etc.)

– Supply RP labour to AREVA – hanging of lead blankets

– Commissioning assistance to AREVA.

– Supply and operation of jib crane in reactor building

– Rigging activities

• Job creation and skills transfer during the project– 57 new jobs to be created: project managers, engineers,

technicians, riggers artisans, radiations monitors, QC and construction managers

– On the job training for 22 individuals: QA/QC, planning, commissioning, project controls, construction, project management

The above commitments are supplementary and above the project team and other training by the local consortium and AREVA

>R600k on

CSI

Past project examples 1996 - 2014

Past project examples 1996 - 2014 cont.

Past project examples 1996 – 2014 cont.

Localised Services

Valves and

Pumps

Maintenance

Refueling

Package

Steam Generator

Packages

Reactor Coolant

Pump Package

Localised

since

1999, contract with

OEM

1999 Since 1989 2001

Scope Nuclear Valves,

Conventional Valves,

Pumps (non nuclear),

Pumps (Nuclear Island

and Balance of NI)

Fuel handling,

Preventive

Maintenance Checks,

RIC Maintenance,

Vessel head Work

• Opening and closing

of primary and

secondary man ways

(1989);

• Water lancing (1992);

• Tube Plugging (2000);

• Eddy Current (2001)

• Routine maintenance

and inspections

• Overhaul of the

Reactor Coolant

Pump & Motor

• Pump and motor

swap-outs;

Commissioning and

Testing

Training Supervisors generally

need 4 outages before

being authorized to

become a supervisor

2 weeks: Basic

Rigging and Pendant

Crane Training

Fuel Handling training

All Personnel

undertaking work on the

SG’s need to re qualify

before every outage and

these people need to be

authorized

• Qualified artisans

with basic rigging

training

Personnel

(as @

March

2015)

8 authorized

Supervisors

43 qualified

Mechanical artisans

49 Semi Skilled - from

the local community –

Atlantis

12 Fuel handlers

12 Riggers

9 Head Work Team –

Semi Skilled and

Mechanical Artisans

57 people including

Sludge Lancing, Eddy

Current and Visual

Inspection Technicians

2 Team Leaders, 5

Mechanical Artisans

International Nuclear Services

• Provision of Personnel Globally thanks to AREVA worldwide presence –

Various Packages

• Enables Retention

• Retain and maintain certified and authorized nuclear skills for Koeberg

• Recruit and train additional resources

• Core team of 25 people

• Upfront financial commitments for training are substantial

BRAZILAngra 1

UKSizewell B

1 SPAINConfrentes

Vandellos

Garona

USACalvert Cliffs, Diablo

Canion, Turkey Point ,

Callaway Salem, Kewaunee,

Millstone, Davis-Bessey,

Shearon Harris

Catawba, Surrey,

HB Robinson

FRANCEJeumont

SAKoeberg

Lessons Learnt: Major Build Programmes

“the only lesson learnt is the lesson not to learn” A. Einstein.

• Medupi; over budget, late, labour (MLI)

– Lesedi and its partners will achieve over 85% local content on BOP (contract value >R2billion)

– Kusile, Ingula, Gautrain

• REEIPP: localisation really a success?

• Nuclear new build around the world

– Macro environment differences (e.g. China)

• Prescriptiveness on localisation, how far to go ?

– Local to site, BBEEE, PPPFA ? Transaction cost vs diversification, Nuclear Regulations, economics 101

• Vendor experience and value proposition for South Africa – Localisation strategy will impact on Overall Price

– What to localise, how to localise and risk• Many audits conducted locally, some vendors since 2007 in South

Africa

• Skills transfer is it real ?

Localisation Conundrum

• Financing vs country risk – Localisation realities will be impacted by upfront planning and

financing of the nuclear programme vs risk vendors are willing to take

– Building Own Operate Transfer (BOOT) model ?

• What to localise?– Upskilling of resources a must – semi skilled, unskilled

• Every country has localisations ambitions– Manufacture where our strength lies and future growth resides

(export markets and diversification)• Quantities, investment, competiveness

– Upskilling: artisans, engineers, planners, supervisors, technicians, construction, QA/QC, commissioning

– Key equipment: Valves, Pumps, Piping, HVAC, FIRE, Tanks, Cranes, Steel. Etc.

– Various studies commissioned in recent years by academic institutions, associations (NIASA), consultants and vendors

Thank you

SHANE PEREIRA

Business Development Manager (LESEDI NUCLEAR SERVICES)

Telephone +27 21 525 1300

Email lesedi@lesedins.co.za

Website www.lesedins.co.za

Address Lesedi Nuclear Services, Edison

Way, Century City, Cape

Town, South Africa

Any reproduction, alteration, transmission to any third party or publication in whole or

in part of this document and/or its content is prohibited unless LESEDI has provided

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