The US utility Exelon Generation is to withdraw from the South African led consortium developing a pebble bed modular reactor. The company will relinquish its 12.5 per cent stake upon completion of the feasibility study and environmental impact assessment currently in progress. The company, which is calling the decision a change in strategic focus, said it intends to concentrate its attention on its core businesses, power generation and distribution.
Dave Nicholls, ceo of PBMR (Pty) Ltd, commented that while Exelon’s departure from the project was regrettable, it would not materially affect the long-term viability of the PBMR technology in the world market. “Exelon’s economic and professional support has done a great deal to advance this technology’s development to the point where there is a defined path to the completion of the commercialisation of the technology.” He said that Exelon’s involvement in the project over the last two years had been of immense value. “We are looking forward to their continued involvement in the balance of the detailed feasibility phase. In terms of the process, Exelon’s decision has not affected us at all, and we are moving swiftly ahead.” Nicholls also said that a replacement investor was being sought, and talks were in the pipeline with several international players which had expressed interest in the technology.
The change of policy follows key management changes at Exelon, which saw chairman and joint CEO Corbin McNeill, an enthusiastic advocate of nuclear power in the USA, resigning. Exelon is saying that it continues to believe that PBMR technology has the potential to be viable and successful. However, this has not prevented it from dropping, at least for the time being, its plans to purchase 40 of the 100 MW units, should they gain a US licence.
Other investors in the project, notably BNFL, which has 22.5 per cent, and the Industrial Development Corporation (IDC) with 25 per cent, will remain part of the project. Eskom, which has 30 per cent of the scheme and has been the driving force behind it, has pledged its continued support. (The remaining 10 per cent is reserved for black empowerment investment.) Eskom executive director Steve Lennon said that while Exelon’s decision was disappointing, it was not a reflection on the feasibility of the pebble bed modular reactor itself, and Eskom remained confident about the project. BNFL pledged its support until at least November 2002, when it will, along with the other partners, review its position.
