New possibilities for pebble bed reactors

A DAY after electricity and energy minister Kgosientsho Ramokgopa pledged his support for the idea of ​​small modular nuclear power reactors (SMRs), C5 Capital – which aims to build such reactors with private money in South Africa – announced a strategic agreement to access uranium.

C5, founded by South African venture capitalist André Pienaar, has signed an agreement with mining group Sibanye-Stillwater under which the two companies will jointly exploit opportunities in the fast-growing SMR industry in South Africa, the US and the rest of the world.

Sibanye-Stillwater's large uranium reserves at its Cooke mine near Randfontein on the Gauteng West Rand and its Beatrix mine near Welkom in the Free State probably were the dealmakers for C5.

With the global switch from fossil fuels to renewable energy for power generation, nuclear power is becoming ever more prominent. It is classified as clean energy and can replace coal for a steady power output that can balance the volatility of solar and wind power.

However, conventional nuclear power stations are seen as too expensive with a very long construction period and thus beyond the reach of many countries.

SMRs can provide the answer by bringing down costs and shortening construction time. Major technology companies such as Amazon and Google are increasingly investing in the development of SMRs with the expectation that such reactors on the premises of their data centres can satisfy the growing demand for the energy needed for artificial intelligence.

Currently, only China and Russia have SMRs in operation, but several firms worldwide are engaged in a race to develop their designs commercially and capture a part of the market.

C5 has an interest in one such company, X-energy in America, in which Amazon also recently invested. X-energy is developing its Xe-100 SMR for the Dow Corporation. The US government supports these developments.

Proposal to cabinet

Several South Africans are at the forefront of SMR developments at X-energy and elsewhere in the world.

These are highly skilled people who used to work on the modular pebble bed reactor programme in South Africa. The programme, which according to Ramokgopa still forms the bedrock of the global development of SMRs, was stopped under the presidency of Jacob Zuma, but Ramokgopa wants to revive it. He will soon present a proposal to the cabinet.

Ramokgopa hopes that South Africa can gain a strategic position to supply SMRs to the rest of Africa. The supply chain is part of this ambition, in which uranium plays a very important role.

As with conventional nuclear power reactors, uranium is used in the production of fuel for SMRs and as the production of these reactors gets commercialised, the demand for uranium is expected to increase.

Sibanye-Stillwater has its eye on this market, while C5 strengthens its strategic position by securing access to uranium.

According to C5, it will benefit the two partners to combine the specific experience and skills of each company. Sibanye-Stillwater has a diverse portfolio of operations, projects and investments across five continents. The company is one of the leading global recyclers of PGM (platinum group metals) automotive catalysts and has interests in renewable operations for mine tailings. Sibanye-Stillwater owns uranium mineral resources totalling nearly 60 million pounds contained in surface tailings at the Cooke Project and underground at the Beatrix Mine in South Africa.

C5 says it will work with Sibanye-Stillwater in the identification, acquisition, financing, development and management of uranium projects and production facilities to supply uranium to SMRs and their associated fuel cycle.

C5 is a member of the World Nuclear Association, which has signed a declaration to triple nuclear energy capacity by 2050. At the COP29 UN climate change conference ending today in Baku, Azerbaijan, six additional countries supported the declaration, bringing the total number of countries endorsing the declaration to 31, C5 says.

Neal Froneman, CEO of Sibanye-Stillwater, says: “We are excited about the partnership with C5 Capital and look forward to exploring together future opportunities in the extremely attractive uranium and clean energy sectors."

Says Pienaar: “The combination of C5's innovative investments in advanced nuclear technology with Sibanye's potential for uranium production creates a transformative partnership in clean energy, both for South Africa and globally."

C5 has already completed its feasibility study for a privately funded SMR in South Africa. According to Pienaar, the regulatory framework that has been developed and established for the pebble bed reactor is a great asset that can give the country an edge over other countries in the race for SMR development.

During a recent visit to the US, Ramokgopa visited X-energy's facilities and held discussions with some of the South Africans who work there.

• André Pienaar is co-owner and board member of Nuwe Vrye Weekblad Media, publisher of Vrye Weekblad.

♦ VWB ♦

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