A French government review has proposed that France-based nuclear utility EDF and France-based nuclear power plant vendor Areva should form a non-exclusive strategic partnership.
The two companies were criticised in France when their consortium (with oil and gas firm Total and rival French utility GDF Suez) lost out on a $20 billion contract for four reactors in Abu Dhabi to a KEPCO-lead Korean consortium.
Also, the prime minister's office has announced a 15% increase in Areva's capital in 2010 from 'industrial and financial investors'. (Although an estimate of its capital was difficult to estimate, in 2009, it reported operational costs (sales, R&D and general administration costs) of EUR 8.76 billion). The plan also allows for the possibility of EDF to take a share of Areva.
As well as optimising the EDF/Areva EPR reactor design, the alliance would also reinforce the 'security and competitiveness' of the French nuclear fuel supply.
Despite the alliance, the 1100MW Atmea reactor project, a joint venture of Areva and GDF Suez, would continue its way through the ASN certification process, according to a press release from the prime minister's office.
In a supporting study, Francois Roussely, a former EDF top executive, said that the French international offering demonstrated organisational problems, weakness of competitiveness of supply, and availability of financing, human resources and the mobilisation of R&D. "The companies have to make considerable efforts to improve their offer against other industry giants," he said.
Related ArticlesVogtle shareholders get an edge (updated) Unistar gets state approval for Calvert Cliffs Terms agreed for Vogtle loan guarantee Constellation Energy turns back on Calvert Cliffs loan guarantee Constellation offers EDF its UniStar stake for $117 million EDF takes over UniStar Constellation-EDF jv clears federal hurdle Maryland PSC slams "orchestrated parade" promising Calvert Cliffs 3