Indonesia Validates ThorCon

After three years, Indonesia Ministry of Energy finally engages ThorCon and validates its proposal. Governments ready to give green light.

Head of MEMR R&D, Sutijastoto and Thorcon Chief Reps hold MOU witness by Thorcon executives, David Devanney and Lars Jorgensen. Sutijastoto, currently is the Director General of New and Renewable Energy MEMR.

Thorcon is name almost every one in Indonesia nuclear sector familiar with since it’s has been operating in Indonesia since 2015 engaging The nuclear agency, nuclear regulator and many other goverment agencies in promoting Thorcon proposal to build 500 MW Thorium Molten Salt Reactor power plant as an independent power producer scheme with target price of under $0.07 per kwh.

Finally in 2018 the Ministry of Energy and Mineral Resources (MEMR) engages ThorCon through the Research and Development Bureau which signed an MOU with ThorCon International on October 13th 2018, to do a study on Implementation of ThorCon 500 MW Thorium Molten Salt Power Plant in Indonesia.

This engagement with MEMR could be considered historical since Thorcon is the first nuclear company that engages the MEMR. Most nuclear companies usually engages the Indonesia Nuclear Agency which actually not the right route since they do not have any authority on nuclear power plant but MEMR does.

The study is a quick assessment as an evaluation tools to recommend to the government whether to move forward and make this project a national program or not — A comprehensive feasibility study including a site study will done after the government has make this an official program.

The study will answer 5 basic questions : 1) Is the regulation is sufficient to build TMSR in Indonesia? 2) Can the electricity be generated and sold under $0.07 per kwh, under the national average cost 3) Does it has a higher safety which can handle a Fukushima type of accident safely? 4) Where is it going be built? 5) Does the area of interest have sufficient demand and electrical infrastructure?.

After 6 months, The Center for New Energy, Renewable Energy and Electricity (P3Tek) of MEMR Bureau of Research and Development have completed the midterm report of the Thorium Power Plant Development Study which covers regulation, safety and economics.

The midterm report concluded that TMSR not only economically competitive with coal but has a high safety standard including full passive safety — The full report is expected to be completed by July 2019.

picture of the midterm report

The report concludes on regulations (quotes from report in bold italic):

“Numerous regulations that concern about the development of nuclear power plants in Indonesia are considerably encouraging”. — Even though, it is mandated by law No 17/2007 that by 2025 Indonesia should have a nuclear power plant operating but the in the past 20 years the anti-nuclear has changed the narratives that as if it is put as last option (GR no 79/2014) meaning that nuclear can be only used after Indonesia ran-out of all energy sources which not the case at all. This study finally put an end to that narrative by acknowledging that the last option means if there is an urgent need that nuclear can be used and most important that the clause cannot negate law no 17/2007.

Is there an urgent need for nuclear in Indonesia?

Without question, Yes !. in fact, there are several needs. The need to lower electricity cost which drives inflation, the need to disconnect electricity from the volatility of fuel market price, the need to increase the growth of installed capacity from 5GW per year to 10 GW to catch up with national energy policy of 430 GW by 2050, the need to replace coal which will depleted by 2040 not to mentioned will not meet future higher emission standard that will be in place as early as 2022, the need to lower emission by increasing the use of clean energy to 23% by 2025 and 31% by 2050. Many studies and experts concluded that this cannot be done without the use of nuclear as proved by France and Sweden, were able to cut emission by half without sacrificing GDP.

On safety:

“The meeting (focus group discussion) between Qvist as independent nuclear expert, BATAN [Indonesia Nuclear Agency] and BAPETEN [Indonesia Nuclear Regulator] concluded that TMSR500 responds safely to a station blackout like Fukushima accident (even at worse scenarios than Fukushima); it also provides a grace period that exceeds a longer period of time (several months).” — When discussing nuclear you cannot escape the topic of Fukushima so The Indonesia government is concerned that a station blackout not lead to a core meltdown as in Fukushima accident.

To help assess safety, a questionnaire developed by MEMR was sent to BAPETEN, Indonesia Nuclear Regulator and to Dr Staffan Qvist, an Independent Nuclear expert which has done extensive studies on Thorcon safety design. They then send their written answer which were then discussed in an focus group discussion on March 14th 2019. Both from BAPETEN and Qvist agreed that ThorCon has a higher safety than most commercial nuclear power plant. BAPETEN noted that a further testing needed for confirmation.

Dr Staffan Qvist giving his latest book “A Bright Future” to the Director of P3Tek MEMR, Sujatmiko.

Bottom line, Fukushima type accident guarantee cannot happen with Thorcon design.

On economic:

“The Thorcon can sell TMSR500 electricity at $0.068 kwh (under average national BPP) and can still generate a healthy and positive return for investors even the project includes a big contingency budget. In other words, the TMSR500 project is a bankable and viable project. Within an IPP scheme, the financial and technology risk to PLN and the Government do not exist” — The vice minister of Energy has said in several media that If Indonesia would eventually build a nuclear power plant it need to be under an IPP (Independent Power Producer) scheme, meaning no state budget required and the electricity selling price need to be under $0.07 per kwh or under the national average.

The midterm report concluded:

“Therefore, based on economic and safety aspects, ThorCon thorium power generation can be considered as one of energy alternative solutions to meet the energy needs in Indonesia.”

Even though it’s a short sentence but this conclusion is an encouraging statement from MEMR.

The locations analizes will be put in the final report. There are three location being considered, West Kalimantan, Bangka Island in Sumatera and Riau in mainland Sumatera. Each location is considered by several aspect namely, 1) public acceptance 2) local political support 3) Demand projection 4) electrical infrastructure. So, it’s about finding the right trade-off between the four aspects.

The final validation

The government needed to verify whether Thorcon design can be built right now without any new technology as claimed by Thorcon.

To answer these, the Indonesia Government send the assistant deputy secretary to the cabinet, Mr Teguh Supriyadi and his staff to visit DSME (Daewoo Shipyard and Marine Engineering) which may serves as Thorcon’s EPC and DOOSAN was accompanied by Mr Sutrisno, Director of Operation PT PAL, Indonesia state own shipyard company which has a long cooperation with DSME on the May 15th 2019. Also visiting were David Devanney, Thorcon International CEO and Bob S. Effendi, Thorcon Indonesia Representative.

Indonesian delegates in DSME Okpo shipyard (Mr Teguh, third from left)

DSME, is the second largest shipyard in the world. It also builds the most challenging but it is also well known to be builder of most first of kind, the biggest and the most challenging first-of-kind marine structures. So building a 174 by 66 meter double hull structure nuclear power plant should be an easy task. DSME’s shipyard is located in Okpo around 2,5 hour from Busan. –Chief Operating Officer Offshore Operation DSME, YS Lee confirmed to the Indonesian delegates that DSME can build Thorcon design in approximately 2,5–3 years, including the FEED (front end engineering design) for the first and the second and nth unit need only less than a year.

Indonesian delegates in DOOSAN head office, Changwon (Mr Teguh third from left).

DOOSAN, a hundred years Korean engineering and power plant component manufacturer which has manufacture 22 nuclear reactors among others the Westinghouse AP1000 reactor vessel is located in Changwon 1,5 hours from Busan. Thorcon plan is to use DOOSAN for major component manufacturer.

Because Thorcon is a high temperature and low-pressure vessel therefore it can use most component from a regular coal power plant unlike other nuclear power plant which need specialize component. For the the turbo generator Doosan propose to use the Doosan-Skoda 660 MW Ultra Super Critical Turbine, which has high reliability and has been used in several power plant in Indonesia.

Of course, making a non-pressurized reactor would not be challenge for Doosan — infact a plan being discuss for PT PAL, the Indonesia shipyard to cooperate both with Doosan — DSME so that the reactor vessel and several component eventually can be built in Indonesia so to increase the local content by technology transfer.

Mr Teguh Supriyadi, Assistant Deputy to the Cabinet Secretariat sign on behalf the Indonesian government accompanied by Mr. Yong-Seok Joe DSME executives.

Mr Supriyadi, having visiting and discussing to executives in both DSME and DOOSAN, is convinced that Thorcon can be build in Korea and eventually the whole unit can be build and manufacture in Indonesia making Indonesia the first Asian countries to be able to manufacture an advanced 4th generation nuclear power plant by 2035.

ThorCon 500 MW TMSR

Whats next

According to Effendi, the final report should be completed by July 2019, then it will be send to the President which would serves a tools for evaluation and discussion in a limited cabinet meeting to get a recommendation from the government to allow Thorcon to build the full-size non-fission test bed platform around mid 2020, which to test safety and thermohydraulic system also to verify Thorcon final design.

Thorcon non-fission test bed platform

Only then, after BAPETEN has runs all test and give the design certification and construction permit then Thorcon would start construction on the plant in Korea, which hopefully can be as early as 2022. –With this test bed platform approach the regulators and the government should have more confident in every step in moving forward being this would be Indonesia first nuclear power plant.

David Devanney, Thorcon CEO giving Dr Surat Thorcon TMSR model (October 2018)

Dr Surat Indrijarso, the Deputy Secretary to the Cabinet Secretariat, said that ThorCon proposal will benefit Indonesia not only giving cheap electricity but also many others aspects that He doesn't think that there is any reasons why the Indonesia government should not support ThorCon proposal as said to ThorCon CEO, David Devanney sometimes in October 2018.

In the end

As concluded by the study since there are no technology and financial risk to the Government nor there is any regulations prohibiting nuclear power plant so there is no reason that the ThorCon TMSR 500 MW can’t be built.

Thus a 2025-2026 target for Commercial operation seems very realistic to deliver clean and cheap electricity to power-up Indonesia becoming a developed and industrialized country.

learn more about ThorCon design : http://thorconpower.com/design/

May 29, 2019 | Bob S. Effendi