Jordan's nuclear programme

07 August 2014

Amman has made progress with its plans, but faces some difficult challenges to reach its goal of generating one-third of its power needs via nuclear by 2030

Programme

Jordan is planning to develop a 1,000MW nuclear power facility in the Amra region, 60 kilometres east of Zarqa city, northeast of the country’s capital Amman.

The nuclear programme is part of Jordan’s efforts to diversify its energy sources by 2030. Jordan is dependent on imports to fuel its power network and currently imports 97 per cent of its energy fuel needs, which is equivalent to 13 per cent of its GDP.

The country’s plans for nuclear power have been given increased impetus since the Arab uprisings in 2011, which put its power sector under increasing pressure following the drop in gas supplies from Egypt since the revolution. Since then, the pipeline supplying gas from Egypt has been attacked on several occasions, which has resulted in the price of electricity increasing by as much as 600 per cent as alternative fuels such as diesel and fuel were used to generate power.

The government set up a committee for nuclear strategy in 2007 to formulate a programme for nuclear power to provide 30 per cent of electricity by 2030, and to provide power for exports. The same year, the nuclear law was modified to establish the Jordan Atomic Energy Commission (JAEC) and the Jordan Nuclear Regulatory Commission (JNRC).

Status

In November 2013, JAEC selected Russia’s Atomstroyexport as the preferred bidder to build the 1,000MW reactor. The selection of the preferred bidder follows a protracted tendering process, with JAEC receiving bids from three firms for the nuclear scheme in January 2011. The commission had shortlisted offers from the Russian firm and the Areva/Mitsubushi consortium in April 2012.

The selection of the preferred bidder follows a protracted tendering process, with JAEC receiving bids from three firms for the nuclear scheme in January 2011. In April 2012, the commission shortlisted offers from Atomstroyexport and the Areva/Mitsubushi consortium.

In November 2009, JAEC signed an $11.3m agreement with Australia’s WorleyParsons involving a pre-construction consultancy services contract for a 1,000MW nuclear power plant. The company was appointed to carry out technology selection, prepare tenders and evaluate bidders, in addition to assisting with fuel-cycle engineering and waste management plans for the planned facility.

In August 2013, JNRC approved the country’s first nuclear research reactor. The 5MW reactor, which will be built at the Jordan University for Sciences & Technology campus near the northern city of Irbid, is scheduled to become operational in 2016. The Korean Atomic Energy Research Institute and South Korea’s Daewoo Engineering & Construction will construct the estimated $103m facility.

Uranium

Jordan Uranium Mining Company (Jumco) is planning to develop a uranium plant in central Jordan. The proposed plant will have a processing capacity of 300-400 tonnes a year (t/y), which could be later expanded to 1,500 t/y. Jumco is looking to develop a strategic partnership before the end of 2014 to develop the facility, with the government holding a majority ownership in the venture.

Entities

Jordan Atomic Energy Commission (JAEC): Established in 2007 to lead the development and procurement of Jordan’s nuclear power programme.

Jordan Nuclear Regulatory Commission (JNRC): JNRC was established at the same time as JAEC in 2007, as a successor to the Jordan Nuclear Energy Commission, which had been established in 2001. JNRC is an independent regulatory body set up to regulate and monitor the development of nuclear energy in the country and ensure the safety of humans and the environment.

Jordanian Company for Energy Resources Incorporation (JERI): JERI was established in 2007 to oversee the mining and extraction of uranium and other elements that can be used for nuclear fuel. The company also has the mandate to explore the import of nuclear fuel for operating nuclear reactors. Registered as a limited private shareholding company, JERI is fully owned by the government, which holds shares through JAEC.

Jordan Uranium Mining Company (Jumco): State-owned Jumco, set up in January 2013 to extract uranium to fuel the country’s nuclear programme, is planning to develop a uranium plant in the central area of Jordan.

Challenges

Water scarcity: Jordan has large uranium reserves. However, it is also the fourth-poorest water country in the world. Mining uranium would require an estimated 60 billion cubic metres a year (cm/y) of water. Until Jordan can increase access to water, mining the uranium resources required will be an impossible challenge.

Use of uranium resources: In addition to the issue of water, providing the required technology and expertise to effectively mine uranium for nuclear fuel will provide a stiff challenge and will require substantial international assistance and investment.

Finance: Lacking the vast income from easily extractable natural resources that its neighbours enjoy, financing nuclear power will provide a stiff challenge for Jordan. Although a final decision on financing is not expected until 2015, it is thought that Russia will contribute up to almost 50 per cent of the nuclear plant’s estimated $10bn capital cost, with the scheme being developed under a model similar to a build-own-operate (BOO) project.

With total government debt estimated at almost 90 per cent in 2013, and rising pressure on public reserves from refugees flooding to the kingdom from Syria and the Palestinian territories, even funding just 50 per cent of the cost of the facility will provide a challenge for Amman. Providing technology and labour for uranium mining and enrichment will add significant costs to the total bill for nuclear power.

Workforce: Providing the necessary expertise and labour force to develop and operate nuclear power will be difficult for Jordan, which only has a population of just over 6 million and a high unemployment rate.

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