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Business News of Sunday, 1 September 2024

Source: bloomberg.com

US signs pact to build small modular nuclear plant in Ghana

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The US has agreed to help build Ghana’s first small modular reactor project in a push to promote nuclear technology as a cleaner energy option for African countries.

The commercial agreement between Nuclear Power Ghana and Regnum Technology Group will use NuScale Power LLC technology, the US Department of State said in a statement.

The project is designed to add energy infrastructure in Ghana “and lead the way on small nuclear-reactor deployments in the region,” it said on Thursday.

The US has championed nuclear technology for Africa’s energy transition, touting reactors that it says can help the continent cut emissions while adding flexible generation capacity more quickly than large atomic plants.

SMRs are drawing the attention of policymakers around the world since they can be mass-produced for assembly in various locations, reducing the time for construction and installation. Yet most are still in the design stage, and soaring inflation — coupled with rising interest rates — has driven up costs.

In October, Joshua Volz, the US Department of Energy’s deputy assistant secretary for Europe, Eurasia, Africa, and the Middle East, said nuclear cooperation agreements were being discussed with Ghana and Kenya.

A previous US agreement with Ghana, which relies on gas for about half of its 6,600-megawatt generation capacity, established a regional training center for SMR technology.