Kazakhstan's preparations for its own nuclear power sector: cooperation with France on offer

French officials led by President Emmanuel Macron visited Kazakhstan. On the occasion, they reaffirmed their commitment to cooperation in the mining of critical minerals, the nuclear fuel cycle and nuclear energy in general. At the crossroads between Europe and Asia, Kazakhstan is a very important player given its extensive reserves of uranium and other minerals. The country is also preparing to build its own nuclear power plant, which will further strengthen its role and importance in the nuclear energy sector. Citizens will first decide whether to build the plant in a referendum to be held in the near future.

President Macron's official visit, as is often the case, was accompanied by senior figures from the national energy sector and aimed to strengthen relations that are developing very well at the bilateral level. The leaders of both countries are aware of the benefits they offer each other. On the occasion of the visit, Kazakh President Kassym-Jomart Tokayev noted that France had invested almost $19 billion in the Central Asian country's economy since 2005.

Energy is undoubtedly the primary sector for both sides, although they are also establishing cooperation in other sectors, such as engineering and the chemical industry. Put simply, however, France, a power that relies heavily on nuclear energy, needs Kazakh uranium, from which Kazakhstan benefits significantly. Against the backdrop of this trade, rare materials such as gallium have also come into play, as has the possibility of sharing nuclear know-how.

It is also worth mentioning the activities of French company TotalEnergies, which is involved in oil extraction at the giant Kashagan and Dunga fields. In contrast to its work with fossil fuels, it also supports the energy transition and renewable energy in the country. One of the projects the countries are working on together is a wind farm in the Zhambyl region.

Kazakhstan and nuclear energy

Kazakhstan is a global leader in uranium production, making it a potential supplier of nuclear fuel, yet it operates no nuclear power plants. This paradox has its roots in the country's post-Soviet era, when it abandoned nuclear energy amid concerns about the environment and the proliferation of nuclear weapons. Among other things, Kazakhstan “inherited” the world's fourth-largest nuclear arsenal from the Soviet Union, but voluntarily gave it up.

As for the energy mix, it is largely dependent on coal. Kazakhstan has, however, committed to carbon neutrality by 2060 and is therefore prepared to seek alternative energy sources, with nuclear power being the most logical solution in this case. The country would be entirely self-sufficient in terms of fuel supply, a highly valuable position. Kazakhstan therefore plans to build two plants: one near Lake Balkhash and the other near the city of Kurchatov.

However, carrying out the projects will not be easy. Contracts to build nuclear power plants are becoming increasingly geopolitical in nature, and the region of Central Asia is certainly no exception. Given that Kazakhstan is the world's largest uranium producer, building its nuclear power plants will be an exceptionally strategic undertaking. Kazakhstan's Ministry of Energy is currently considering bids from four companies, representing China, South Korea, Russia and France: CNNC, KHNP, Rosatom and EDF, respectively. Time will tell whether President Macron's visit will help determine the final decision, as representatives of the other countries will be seeking cooperation just as vigorously, if not more so.