NECSA advances SMR plans for Eskom coal fleet

The South African Nuclear Energy Corporation (NECSA) is advancing plans to develop a demonstration small modular reactor (SMR) with a long-term view of deploying the technology at Eskom’s coal-fired power stations. 

Presenting the organisation’s updated corporate strategy to the Portfolio Committee on Electricity and Energy last week, NECSA CEO Loyiso Tyabashe confirmed that the SMR programme forms part of a broader growth pipeline, which includes power generation, process heat applications and isotope production. 

The SMR will initially be developed as a demonstration reactor at NECSA’s Pelindaba site aimed at proving multiple use cases across the energy and industrial sectors. 

“We are looking at a demonstration reactor on our site with a long-term view of deploying it in the Eskom coal fleet,” said Tyabashe.  

According to Tyabashe, the reactor is intended to support electricity generation, provide process heat for energy-intensive industries such as refining and steel production, and enable isotope production. 

NECSA has already issued an expression of interest to the market for the SMR project and is engaging with potential suppliers and partners. A preferred partner is expected to be identified within the next year. 

The SMR programme is part of six growth initiatives under NECSA’s revised strategy, which shifts the organisation from a stabilisation phase into a growth-focused model aligned with national energy and industrial priorities. 

NECSA Chair David Nichols told the committee that the strategy is aligned with the organisation’s legislative mandate and supports the Integrated Resource Plan 2025. 

In parallel with the SMR development, NECSA outlined a broader nuclear pathway at Pelindaba, which could see the site host three reactors over time:  

  1. The existing Safari-1 research reactor 
  2. A planned multi-purpose reactor 
  3. The proposed SMR demonstration unit 

The organisation estimates that its six growth programmes will require investment of approximately R80 billion with a strong focus on attracting private-sector funding. 

According to NECSA Group Chief Financial Officer Precious Hawadi, the organisation is positioning itself to engage with investors, supported by improved governance and financial performance.