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Economic & Energy Studies

El-Dabaa: Egypt Close to Fulfilling Its Nuclear Dream

ahmed bayoumi
Last updated: 2024/02/04 at 4:19 PM
ahmed bayoumi
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Nuclear energy is a significant contributor to global energy production due to its status as a clean and renewable energy source. Moreover, it is a dependable and controllable source that does not emit greenhouse gases, thereby contributing to the mitigation of climate change. These specifications render it a paramount solution upon which the world can depend to accomplish the seventh objective of the Sustainable Development Goals (SDGs), namely, “ensuring access to clean and affordable energy.” It also contributes to achieving the sixth SDG, which “goes beyond drinking water, sanitation, and hygiene to also address the quality and sustainability of water resources.”

In 2024, Egypt witnessed a highly significant historical event. On 23 January, the construction of the fourth unit of the Dabaa nuclear plant was announced. This project, which aims to build the first nuclear power plant in Egypt for peaceful purposes, was initially planned on 19 November 2015. Russia, which is thought to have one of the biggest nuclear arsenals in the world, was selected as the project’s technical partner. In November 2015, Cairo and Moscow signed an initial agreement in which Egypt would secure the services of the nuclear energy corporation Rosatom and its subsidiaries. The objective of this agreement is to construct Egypt’s first nuclear power plant. Egypt’s current endeavor to construct the nuclear power plant is the culmination of a protracted struggle to join the international nuclear community.

The Nasserist Era

The Egyptian nuclear aspiration was born in 1956, when the initial nuclear energy agreement was signed with the Soviet Union. The agreement laid the groundwork for the formation of the Egyptian Atomic Energy Authority in 1957, which played a significant role in Egypt’s accession as a founding member of the Vienna-based International Nuclear Energy Agency, a United Nations affiliate. Egypt initiated its endeavors in the nuclear domain with the enactment of the legislation governing the handling of ionizing radiation and the mitigation of its hazards in 1960. In 1961, an atomic reactor with a capacity of 2 megawatts was constructed for scientific research purposes. Additionally, a laboratory for the production of radioactive isotopes and a few restricted nuclear devices were established in Inshas of Sharqia during the presidency of Gamal Abdel Nasser.

Egypt established the Middle Eastern Regional Radioisotope Centre for the Arab Countries (MERRCAC) in collaboration with the International Atomic Energy Agency, furthering its efforts in this field in 1963. In 1964, Cairo initiated a global bidding process to procure nuclear energy for generating electricity in the Sidi Krir region, located on the northwest coast. The intended capacity of this project was 150 megawatts. The project was halted, however, with the outbreak of war in 1967. In 1968, Egypt, along with around 170 other countries, ratified an international treaty known as the Non-Proliferation of Nuclear Weapons (NPT).

The Sadat Era

During President Sadat’s administration and following the spike in oil prices brought on by Arab solidarity with Egypt in October 1975, the United States agreed to provide Egypt with nuclear power reactors. An agreement was reached with Richard Nixon, the country’s then-president, to build a 1,300-megawatt nuclear power plant. Egypt signed the necessary agreements with the involvement of the International Atomic Energy Agency and the United States of America. Nevertheless, a stipulation was appended during the presidency of Jimmy Carter, mandating inspections of Egyptian nuclear facilities. Egypt declined this proposition, perceiving it as an encroachment upon its sovereignty. Prior to the assassination of former President Mohamed Anwar Al-Sadat, he issued a presidential decree designating a desert area in Dabaa as a location for the construction of a nuclear power plant in Egypt. The purpose of this plant was to generate electricity and desalinate water. However, this plan was never put into action. 

The Mubarak Era

In 1983, Egypt launched a bidding for establishing a nuclear power plant for electricity generation. Additionally, Egypt sought to modify its agreement with the US Department of Energy in order to increase the amount of uranium purchased for operating Egyptian nuclear plants. The proposed increase was from the initially agreed upon 600 megawatts for the Sidi Krir plant to 4000 megawatts, which would meet the requirements of four 1000-megawatt plants. Nevertheless, this undertaking was halted for factors associated with explosions, including those that transpired at the Chernobyl nuclear power plant in the Soviet Union.

However, there was still optimism regarding the establishment of this plant, and a subsequent preliminary feasibility study was conducted between 1999 and 2001, which was then revised in 2002. Subsequently, Egypt made a strategic decision in 2007 to declare the establishment of several nuclear reactors for the purpose of electricity generation. In 2008, Egypt and Russia entered into an intergovernmental agreement pertaining to collaboration in the domain of peaceful applications of atomic energy. After that, in 2009, the Nuclear Power Plants Authority (NPPA) contracted with Worley Parsons to provide technical advisory services; however, the project’s completion was delayed until 2014.

Strong Will

With resolute decisions and a robust political determination to realize the Egyptian nuclear aspiration, optimism has once again prevailed. Over the course of nine years, Egypt successfully accomplished what it had been working to achieve in almost four decades. In 2014, arrangements were made to draft a request for bids for engineering, procurement, and construction. A financial intergovernmental agreement between the Egyptian and Russian Finance Ministries and an intergovernmental agreement between Egypt and Russia were both executed in 2015 with respect to the development of the nuclear power plant in Dabaa. In 2016, the engineering, supply, and construction contracts with Rosatom were finalized.

The NPPA has formally requested permission from the Egyptian Nuclear and Radiological Regulatory Authority to approve the selection of the Dabaa site. The commencement notice, serving as the formal initiation of the project to construct Egypt’s inaugural nuclear power plant, was executed in 2017, with the engineering survey and preliminary design tasks finalized in 2018. An acceptance permit for the Dabaa site selection was issued on 10 March 2019. Subsequently, construction of the pier commenced, and the project’s infrastructure and non-nuclear works began in 2020. Approval was granted in 2021 to initiate the manufacturing of the reactor core riser. Concrete pouring for the first nuclear unit was finished on 20 July 2022; for the second on 19 November 2022; for the third on 3 May 2023; and for the fourth on 23 January 2024, signifying the completion of construction activities and the commencement of the primary construction stage for all concrete components in the project, which is scheduled to conclude in 2028, and for the initial nuclear reactor to commence operations with a capacity of 1,200 megawatts.

As per the preliminary agreement ratified on November 19, 2015, Russia is currently entrusted with the responsibility of overseeing the development and financial aspects of Egypt’s inaugural nuclear power facility. As stated earlier, preliminary agreements for the construction of the plant were signed in 2017. The plant comprises four VVER-1200 nuclear reactors, which were designed and developed during the 1990s and early 2010s. These reactors are characterized by greater complexity compared to second-generation reactors, as well as enhanced efficiency and safety when compared to both first- and second-generation reactors. Additionally, they have the capability to generate smaller quantities of radioactive waste. The reactor produces 1,200 megawatts per unit, resulting in a total targeted power generation of 4,800 megawatts from that reactor (it is noteworthy to mention that the High Dam produces a total of 2100 megawatts of power). The projected cost for constructing that plant amounts to approximately $29 billion. The Russian government will provide 85% of the funding through a government loan, which carries a subsidized interest rate of around 3% for a duration of 22 years. Egypt bears the responsibility of financing the remaining 15%. The project will be executed on a 15-kilometre-long, 5-kilometre-deep area measuring 45 square kilometers along the White Sea coastline. The project is broken down into multiple phases. The first phase involves building a 4,800-megawatt nuclear power plant with four reactors, setting up the infrastructure to monitor and measure temperature, humidity, wind direction, earthquakes, and sea currents, supplying the energy required to run the project, and building worker service buildings.

International Standards

In November 2020, the Dabaa nuclear plant received recognition as the second most outstanding nuclear project globally. This accolade was attributed to the reactor’s simple and reliable design. The plant is equipped to endure a collision involving a 400-ton, 150-metre-per-second heavy commercial aircraft. Similarly, the reactor is resistant to 14-metre-tall tsunamis, earthquakes with an acceleration of up to 0.3 of the Earth’s gravitational force, hurricanes, and winds. Furthermore, the design adheres to standards that effectively mitigate the risk of errors caused by human operators. These reactors feature multiple barriers to prevent radiation leakage, employ passive and positive safety systems, enhance fuel efficiency, and minimize waste production.  In addition, they are outfitted with a state-of-the-art automated control system. Noteworthy, the project is owned and operated by the NPPA and the primary contractors consist of entities affiliated with Rosatom and its subsidiaries.

The Dabaa project plays a crucial role in generating various economic benefits for the Egyptian economy by enabling Egypt’s participation in industrial and technological advancement. Rosatom will engage in collaborative efforts with domestic suppliers to execute the Dabaa nuclear plant project. It is projected that domestic companies will contribute to 20% of the project’s execution. The local component’s percentage is expected to reach 20-25% by the time the first reactor is operational in 2028, and the same proportion will be in place for the second reactor by 2029; this figure is expected to further increase to 35% by the time the third reactor is operational in 2030 and the fourth in 2031. Furthermore, local components will comprise 35% of the construction and 25% of the plant’s equipment and components. Approximately 5% of the project’s designs will originate from Egypt, and 35% of the raw materials will be sourced locally.

In terms of employment, it was mutually decided that Rosatom would provide training for around 2,000 individuals who will be employed in plant operation and maintenance. This training will equip them with the necessary skills and knowledge to effectively and safely operate the four power reactors in the plant.  The project is anticipated to employ over 10,000 specialists and offer a minimum of 2,000 job openings for Egyptian workers.

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TAGGED: Dabaa Nuclear Plant, Egypt
ahmed bayoumi February 4, 2024
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ahmed bayoumi
By ahmed bayoumi
Deputy Head, Economic and Energy Studies Unit

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