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BW2007  JAN 30,2002       2:01 PACIFIC      05:01 EASTERN


( BW)(TX-INDUSTRIAL-INFO-RES) Pebble Bed Modular Reactor Design Pushes
Renewed Interest in Worldwide Nuclear Power Generation, in an Advisory
by Industrialinfo.com

    Business/Energy Editors

	   HOUSTON--(BUSINESS WIRE)--Jan. 30, 2002--The following is an
advisory by Industrialinfo.com (Industrial Information Resources, Inc;
Houston): The rehabilitation of nuclear power generation plants, which
could represent part of the answer to world's power generation needs
over the next 30 years, has taken a few steps forward in the
consciousness of governments and industry in the past six months.
However, nuclear power still has a way to go among environmental
groups and those involved with post-Chernobyl public health concerns.
	   The Pebble Bed Modular Reactor (PBMR) from Eskom in South Africa
continues to claim the attention of both the large power hungry
regions and the capital conscious development areas to which the
modular and smaller output plant could be both affordable and
appropriate.
	   Stakeholders in the project include the U.S. company Exelon with
12.5%, Eskom with 30%, British Nuclear Fuels with 22.5%, Industrial
Development Corporation of SA with 25%, and Black empowerment at 10%.
Currently, Exelon is negotiating for the possible purchase of 40 PBMRs
at a price of around $6 billion (USD). Early in 2001 the company
requested the U.S. National Regulatory Commission to start laying the
groundwork for PBMR licensing.
	   Exelon would like to see the $300 million demonstration unit,
which is planned by Eskom in South Africa as a proven model, to show
that all technical matters have been resolved and that safety,
efficiency and viability are proven enough for U.S. regulatory
agencies to proceed forward with licensing. The plant is to be built
alongside the existing nuclear power station at Koeberg in the Cape
Province of South Africa with work commencing in 2003. If approved,
Exelon may then start concurrent construction of U.S. sites to bring
PBMR-generated power to market at the earliest possible date and at
the best price. Specifications and claims by Eskom, who purchased the
technology after a 21-year development and proving period in Germany,
present the PBMR as small, safe, clean, cost efficient, inexpensive
and adaptable.
	   The PBMR uses multiple coated uranium particles encased in
graphite to form a fuel sphere (60mm in diameter). The PBMR design
makes use of helium as the coolant and energy transfer medium to a
closed cycle gas turbine and generator. The design differences between
the PBMR and Pressurized Water Reactors result in the PBMR being a
safe and economical power plant.
	   The annual world market for power generation is estimated at $70
billion. The PBMR, if it comes through its regulatory trials, would be
in a position to capture a tasty slice of this power action. With 10%
of the shareholding in the PBMR project reserved for new black
empowerment shareholders, 10 plant export orders a year could
contribute nearly $1 billion a year to South Africa's Gross Domestic
Product and another $1 billion in export income. An estimated 57,000
direct and indirect jobs would be created. These figures would double
and triple for 20 or 30 orders annually. If the demo plant achieves
its targets, Eskom will place an order for 10 modules, with the Exelon
order hopefully kicking in immediately for a possible date for the
first U.S. plant in 2007.
	   Eskom will sell PBMR's as a manufactured item with no rights
given. Eighty percent of the costs will be made up of the manufactured
reactor and 20% site construction related. The aim is for 40% of the
sourcing to come from South Africa. Taxpayers money (approximately $50
million so far) is being spent by the South African authorities in
giving all due diligence to the studies and to public feedback on the
project before the "go" decision is given. With this right and proper
concern and the considerable market presence of Eskom and Exelon the
130MW modules will no doubt play a crucial role in the future of
nuclear power generation.
	   The project managers are indicating growing confidence in their
ability to bring the product to market and have recently made a
significant move. A contract has been placed (in mid-January 2002)
with the U.S. company Stone & Webster and South African construction
company Murray & Roberts and black empowerment contractor Proman
Management Services to provide consulting services to the PBMR project
in engineering, procurement, construction management and project
management. Following this development, the PBMR management at Eskom
have gone on record to state that with the multi-national and
multi-disciplinary support now providing leverage, the approval
hurdles for the pilot project should be cleared by the end of 2002
given the crucial general diligence and environmental clearance by the
government.
	   Industrailinfo.com provides daily news related to the industrial
market place including industry alerts and databases for the energy
and industrial markets. For more information on trends and upcoming
construction activities for the Energy and Power markets as well as
other industrial sectors send inquiries to
powergroup@industrialinfo.com or visit us at www.industrialinfo.com or
www.iirenergy.com.

    --30--MJB/ho*

    CONTACT: Industrial Information Resources, Houston
             Britt Burt, 713/783-5147

    KEYWORD: TEXAS SOUTH AFRICA GERMANY INTERNATIONAL EUROPE
AFRICA/MIDDLE EAST
    INDUSTRY KEYWORD: BUILDING/CONSTRUCTION ENERGY OIL/GAS UTILITIES
    SOURCE: Industrial Information Resources

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