France aims to streamline, unify nuclear industry
PARIS (Reuters) - France's nuclear policy council on Monday unveiled measures to streamline and unify a nuclear industry plagued by technical issues and public disputes that have tarnished its image abroad.
Among a set of measures aimed at reshaping one of France's most sensitive industries after the loss of a landmark deal in Abu Dhabi in December 2009, the council called on Areva to turn its uranium mining arm into a subsidiary, and cooperate with EDF and GDF Suez to develop a new reactor.
The government holds over 80 percent of EDF's capital and about 90 percent of Areva's.
The council, chaired by President Nicolas Sarkozy, also announced the start of discussions to set up a wide-ranging partnership with top nuclear client China.
"Beyond the supply of products and services for existing and future facilities, this partnership could include the building of new EPR (reactors), the joint development of a medium-sized 1,000 megawatt reactor," Sarkozy's office said in a statement.
China, which currently has 13 working reactors with just under 11 gigawatts of total generating capacity, aims to raise its capacity to 40 gigawatts by 2020.
EDF TAKES THE LEAD
Sarkozy's office said Energy Minister Eric Besson would set up a nuclear power strategic committee, which will gather all of France's nuclear power players. Besson will chair the committee, and EDF Chief Executive Henri Proglio will be his deputy.
This appeared to be another effort by the government to put behind public disputes between Areva's and EDF's heads in the wake of the Abu Dhabi loss, and delays in a key Finnish project, which have harmed the French nuclear industry's image abroad.
EDF, which has asked to lead the French nuclear industry in bids abroad, saw its wish largely granted.
"When France will be requested to provide architect skills to assemble (a nuclear power plant), EDF will be the leader of the French nuclear industry. In other instances, the leader or leaders will be designated depending on the situation and the needs of the country requesting help from French companies."
Areva has said it is opposed to nuclear power giant EDF leading the French nuclear industry's export drive, saying this would deter EDF's rival utilities from buying Areva reactors.
Areva, whose chief executive Anne Lauvergeon is tipped to be replaced in June at the end of her mandate, has also opposed EDF's calls to dismantle the group whose activities range from uranium mining and enrichment to reactors and waste recycling.
But on Monday, the council asked Areva to turn mining, which analysts value at 5 billion to 8 billion euros ($6.83 billion to $10.93 billion), into a subsidiary.
"While reaffirming that this mining business is a core asset for Areva, the nuclear policy council asks that the business is put in a subsidiary as a preliminary step to study strategic and financial scenarios to ensure its development."
The council also asked Areva and EDF, Areva's biggest enriched uranium client, to strike a long-term supply deal. In January 2010, Areva had briefly suspended deliveries of nuclear fuel to, and waste collection from, EDF after the expiry of a deadline to renew a contract.
Areva, EDF and EDF rival GDF Suez will also work jointly on the development of ATMEA, a medium-ranged reactor, which industry observers say is more fit to win deals abroad.
Industry observers have said France lost the Abu Dhabi contract mainly because the product on offer, a state-of-the-art 1,650 megawatt reactor EPR, was too powerful and pricey for the Gulf emirate.
($1=.7316 Euro)
(Additional reporting by Matthias Blamont and Gilles Guillaume; Editing by Erica Billingham and Hans Peters)