The African Commission On Nuclear Energy (AFCONE) and US-based DeepGEO have signed a partnership agreement paving the way for expanding nuclear energy in Africa and establishing a fully autonomous African nuclear supply chain. The African Nuclear Energy Funding Initiative (ANEFI) agreement supports the development of multinational repositories for high level nuclear waste in Africa to promote regional governance and secure financing for vital infrastructure development. DeepGEO said this “enhances the sustainability of nuclear energy worldwide, and boosts sustainable development in a continent that is expected to become home to 25% of the global population by the year 2050”.
AFCONE, based in Pretoria, South Africa, was established in 2010, following the entry into force of the African Nuclear-Weapon-Free Zone Treaty (The Treaty of Pelindaba) in 2009. AFCONE is financed by States Parties assessed contributions, as well as extrabudgetary funding. Deep Geo, based in Rhode Island, USA, has subsidiaries in Labrador (Canada) and Ghana. According to DeepGEO the collaboration with AFCONE “is marked by a shared commitment to the vision of the Pelindaba Treaty.
AFCONE Executive Secretary Enobot Agboraw said “ANEFI offers the chance for African nations to leapfrog the established nuclear status quo, to collaborate as equal partners, and to take the development of nuclear power in Africa into their own hands.” DeepGEO President Link Murray noted: “We are incredibly grateful and humbled to be able to support AFCONE in its historic mission to bring affordable, clean nuclear energy to Africa.”
DeepGEO said the lack of deep geological repositories for the disposal of high-level radioactive waste “has long cast a shadow over the sustainability of nuclear energy and proven a stumbling point for launching nuclear energy programmes in newcomer countries”. It added: “The establishment of shared and multinational repositories is a long-discussed solution to this problem, but until now few countries have been willing to host these facilities and previous initiatives have failed to gain the necessary public acceptance. DeepGEO is working with several African governments that have expressed potential willingness to host such facilities.”
As part of ANEFI, DeepGEO said it will be introduced to African financial institutions and will gain enhanced access to African decision-makers. In return, AFCONE will benefit from a portion of the future proceeds and will immediately start work on establishing a template for regional nuclear governance that will facilitate nuclear energy deployment and the use of shared fuel-cycle facilities across the continent.
ANEFI will also support the development of African financial institutions and enhance their capability to invest in nuclear energy projects. These institutions will seek to partner with international institutions to bring investment into the African nuclear sector. “The goal is to eventually achieve nuclear autonomy for Africa, supporting regional nuclear fuel-cycle facilities, research and medical facilities, and a domestic supply chain.”
According to AFCONE, the ANEFI agreement “supports the development of multinational repositories for high level nuclear waste in Africa as a way to promote regional governance and secure financing for vital infrastructure development”. This “enhances the sustainability of nuclear energy Peace, Power, Prosperity worldwide, and boosts sustainable development in a continent that is expected to become home to 25% of the global population by the year 2050”.
Under the agreement, the parties agree to proceed with a roadmap, recognising that it will dynamically evolve with time, that will consist of four phases.
- PHASE 1 will establish a taskforce of selected leading global regulators and legal experts to develop a regionally harmonised framework for nuclear governance and regulation starting with regulations covering the back end of the fuel cycle. Subsequent projects will seek to harmonise NPP licensing, design certification and operations; uranium mining; transport; and the nuclear fuel cycle front-end. It will “undertake outreach to customers and funders that will enable Deep Geo to provide capital in support of building African nuclear energy infrastructure” within a years' time. This phase ill also “begin to establish African nuclear financial institutions and power generation projects within Africa, through Parties resources and potential partnering with international financial institutions on terms beneficial to both Africa and the funders”.
- PHASE 2 will begin to implement multinational repository programme(s), begin “to collect customer reservation deposits” and continue to establish African nuclear financial institutions.
- PHASE 3 will expand and strengthen African nuclear financial institutions including infrastructure development banks, equity funds and venture capital funds. It will initiate multiple, shared power generation projects between countries in Africa.
- PHASE 4 will seek to establish complete African nuclear power supply and value chains to achieve full nuclear autonomy for Africa, through the development of regional nuclear fuel cycle facilities, research & development facilities, medical facilities, capacity building, and other supporting infrastructure.
The agreement recognises that the major impediment to building NPPs in Africa is timely and affordable financing. AFCONE and Deep Geo will therefore “collaborate to apply by using a portion of the revenue from multinational deep geological repositories to finance rapid implementation of nuclear power generation throughout Africa”. For example, based on “a conservative annual intake” of 2,000 tonnes of used nuclear fuel priced at $1m per tonne, this would generate annual revenue of $2bn and a royalty of 1% paid to AFCONE would generate $20m annually. An investment of 20% revenue into a Deep Geo Trust for an African Nuclear Bank would generate $400m annually. An investment of 20% revenue into a Deep Geo Trust for general African Economic Development would generate $400m annually.
The parties will encourage African newcomer/embarking countries to develop their nuclear power programmes using a multilateral approach (which would entail common regulatory frameworks, joint development of infrastructure issues and sustainability requirements, capacity development, joint ownership and joint operation. “This will reduce financial risk, facilitate financing, reduce political and proliferation risks, and expedite the completion of the projects”.
The parties will also promote public awareness, capacity building, community and stakeholder engagement, realising that obtaining a social licence is necessary for the successful implementation of nuclear projects. 9. Without losing focus on financing and regulatory governance, which are the top priorities needed for the rapid implementation of nuclear power in
ANEFI will promote or support Pan-African nuclear cooperation; strengthen shared access to information, promoting regional cooperation on nuclear activities, including between neighbouring countries, as well as international collaboration regarding nuclear issues; encourage joint access to regional nuclear fuel cycle facilities and research centres in order to foster cooperation, facilitate cross pollination of experience, and minimise the duplication of efforts; promote nuclear energy independence for Africa through domestication of the nuclear fuel cycle, and localisation of the nuclear industry supply chain in Africa; Promote non-power uses of nuclear energy to enhance decarbonisation of the industrial and transport sectors (process heat, hydrogen production, and a well as domestic heating and seawater desalination; and promote the adoption of common standards and practices on nuclear safety, nuclear security, safeguards, and waste management.
The phases of ANEFI will generally be implemented in sequence, but there may be overlaps in implementation. ANEFI will provide progress reports to AFCONE and Deep Geo on a regular basis to be defined by the parties.
Image: DeepGEO President Link Murray (L) and AFCONE Executive Secretary Enobot Agboraw at the Africa Energy Indaba conference (courtesy of AFCONE/DeepGeo)
