n.triple.a - The Nuclear Atkins Assystem Alliance

The French Nuclear Safety Authority (ASN) handed over its report
The ASN handed over its report the stress tests carried out on reactors in the wake of the Fukushima nuclear accident that occurred in Japan last March. The French nuclear watchdog says that no immediate shutdown is required for any of the country’s nuclear installations and stressed that they all present a “sufficient safety level”. However, the ASN also stresses that it is necessary to improve “as quickly as possible” the installations’ sturdiness so that they can face “extreme situations”, such as the ones that led to the Fukushima disaster (see next article). As far as EDF is concerned, the ASN wants the state-owned utility to install “core” safety equipment and procedures in every one of its nuclear plants, including additional power generators that may cost up to €60 million each, and “bunkered” control rooms whose cost could reach up to €100 million per unit. In addition, the ASN calls for the creation of a rapid-response team with specialized equipment by the end of 2014. André-Claude Lacoste, head of the ASN, stated that “We believe that facilities can only continue to operate if investments are made in the timeframe we’re setting, otherwise we may have to suspend some operations. If EDF estimates that what we are asking for is so expensive that it does no longer make it worthwhile to operate one facility, it can decide to shut that facility.” French Industry Minister Eric Besson will meet representatives from EDF, Areva and the Atomic Energy Commission (CEA) on January 9 to talk about these implementations.
Les Echos, Le Figaro économie, La Tribune, The Wall Street Journal Europe, Financial Times Europe, 04/01

The Cigéo waste disposal centre enters the industrial design phase
After 20 years of design and research, and the signature, on the 4th of january, of a first contracting agreement with the Gaiya group (made up of the two engineering companies Technip & Ingérop), Andra's Cigéo project is moving into the industrial design phase. The Cigéo project aims at the disposal of the most radioactive French waste, primarily from nuclear power plants and the reprocessing of their spent fuel. In 2013, Andra will launch tenders for the selection of "subsystem" prime-contractors who, under the coordination of the system prime-contractor, will carry out the preliminary design studies and will be involved in several areas: conventional surface installations, nuclear surface installations, nuclear processes (waste package handling) and underground installations.
Enerzine.com, investor.fr, 04/01

France banks on Chinese students to sustain its nuclear industry
The Wall Street Journal Europe reports on France’s strategy to train Chinese students in nuclear engineering at the Franco-Chinese Institute for Nuclear Energy, a school located in China’s Guangdong province. France aims at embedding a culture of high safety standards into future Chinese top nuclear officials and at subsequently obtaining contracts for its nuclear companies. Bernard Bigot, head of France’s Atomic Energy Commission, explains that maintaining nuclear expertise means that France must keep building new nuclear plants. With only one domestic nuclear plant under construction, France must therefore conquer new markets, and China is already a major source of revenue for many French nuclear companies.
The Wall Street Journal Europe, 29/12

Major steps forward for the Hinckley EPR project
Three major steps have been achieved in regard of the launching of the construction of two nuclear power plants at Hinckley, in western England. First, the British government accepted the implementation of a guaranteed price for “green” electricity, that is electricity that generates little CO2, including nuclear energy. The level of this guarantee should be specified in 2012. Second, Britain’s nuclear regulator has approved the interim design of the EPR. Third, EDF, which will built the EPRs at Hinckley, signed two €120-million contracts to prepare for this construction. One contract was signed with construction company Kier Bam for site-preparation works at Hinckley, and the other was signed with AREVA about the design of the EPR.
La Tribune, 19/12

French parliamentary report supports nuclear energy
France’s Parliamentary Office for Evaluating Scientific and Technology policy Options (OPECST) published its report about “The future of the French nuclear industry”, a report in which the authors support this industry based on four strategic priorities: sufficient electricity supply; assuring France’s energy independence; maintaining the country’s economy; fighting climate change. This report calls for the replacement by EPRs of half of France’s nuclear reactors once they are half a century old. In this scenario, 20 EPRs would have to be built by 2036 and 30 by 2052, at which stage they would generate 50 % to 60 % of the country’s electricity production.
Le Figaro économie, 16/12

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German cabinet agreed on accelerated nuclear phase out
Monday, the German cabinet approved bills that will phase out nuclear energy by the end of 2022. According to this draft legislation, three nuclear power plants will be shut down in 2015, 2017 and 2019, three more in 2021 and another three in 2022. Key measures were also agreed to replace nuclear power, such as a tax on nuclear fuel until 2016, the construction of new fossil-fuelled power stations, the construction of additional transmission power lines, and subsidies for renewable energies.
Les Echos, Le Figaro économie, La Tribune, 07/06

Saudi Arabia goes nuclear
Saudi Arabia announced its intentions to issue a call for tenders for the construction of 16 nuclear reactors, starting in 2020. According to Abdel Ghani Malibari, coordinator of the King Abdallah City for Atomic and Renewable Energy, the total cost of this program would amount to $80 billion, and “The first two reactors should be ready in ten years”. Thereafter, two new reactors will be completed every year so as to reach 16 operational reactors by 2030.
La Tribune, 03/06

Fukushima remains an exception
Dominique Louis, CEO of Assystem France, wrote a comment article in the prestigious French economic newspaper Les Echos, in which he states that the Fukushima-Daiichi nuclear accident is not representative of the global nuclear industry and could not reoccur elsewhere. Although the scale of the tsunami was shocking, the systemic component of the risk was not taken into account by the Japanese designers, in spite of multiple warnings from the safety authorities. Another problem is the fragmented nature of Japan’s nuclear industry. Dominique Louis adds that Japanese operators do not have the same perception of risk, and that Tepco had been heavily penalised for reprehensible actions taken in the past, for instance. It is reasonable to believe that delays in seeking outside assistance aggravated the Fukushima disaster. Therefore, he argues, the events should not call the whole nuclear industry into question, although no concessions can be made over safety and security, which should be based on strong safety authorities such as those that exist in France or the US, and a limited number of operators, whilst engineering expertise must be used to optimise preparations for extreme risks. In Europe, meanwhile, there is scope for alterations to the energy mix and reductions in energy usage, but nuclear power is one of the most promising forms of clean energy.
Les Echos – 24/05

European Commission says human factor must be taken into account in nuclear stress tests
The President of the European Commission (E.C.) Jose Manuel Barroso said on Wednesday that the human factor will have to be included as one of the risks in Europe’s nuclear stress tests. Mr. Barroso announced that “These tests will have to be complete and will have to include a panel of scenarios as wide as possible, with natural and human factors.” This announcement remains quite vague and it should give the member States some flexibility regarding the inclusion or not of terrorist attacks or airplane accidents in their stress tests. The Western European Nuclear Regulators Association (WENRA) explains that these types of risks do not come under “nuclear safety” but fall under “national security”, and André-Claude Lacoste, president of Frances’ Nuclear Safety Authority (ASN), emphasizes that in this case “it is not possible to say everything on this kind of topic”.
La Tribune, Les Echos, 12/05

Technical analysis is sole criterion to shut down nuclear plant
Luis Echávarri, General Director of the OECD Nuclear Energy Agency (NEA), was interviewed by French economic newspaper Les Echos and said that the Fukushima nuclear accident will leave its mark on the future of nuclear energy, but its impact will not be the same as Chernobyl's. Mr. Echávarri explains that "The origin of the Chernobyl accident was nuclear, linked to the exploitation of the plant. Fukushima was caused by an exceptional natural disaster (...). Nobody has died in Japan because of this nuclear accident."Regarding the shutdown issue over existing nuclear power plants, Mr. Echávarri answers that "Stress tests are being conducted everywhere. If the technical analysis shows that a reactor does not meet the new standards or that works of adaptation would be too expensive, it will have to be shut down. But it has to be a technical analysis. It's a mistake to shut down a nuclear plant for political reasons. (…) Some of the German reactors which have been shut down are among the best and safest ones in existence!"
Les Echos, 28/04

Abu Dhabi maintains its initial choice for nuclear plant
In the wake of the Fukushima nuclear events, a rumor spread that said Abu Dhabi may reconsider its first choice for the country’s first nuclear power plant, a contract awarded to a Korean consortium in favor of the French EPR reactor. However, a source close to Abu Dhabi’s Federal Authority for Nuclear Regulation (FANR) said this construction project will suffer no delay and no moratorium. The first reactor should be operational in 2017.
Le Figaro économie, 25/04

France wants to benefit from new Chinese nuclear safety standards
In China, the nuclear plants operators are currently conducting safety audit of their facilities. France believes that once these audits are completed, China will select nuclear projects that meet its new safety standards. China’s more stringent nuclear safety regulation would thus give better chances to third-generation nuclear reactors, such as the EPR, which are supposed to be more resistant to accidents.
Les Echos, 21/04

Finns not alarmed by nuclear energy
In a tensed context for the nuclear industry, Finland “puts things into perspective”, according to Simo Brummer, consultant at Finnish consulting firm Embea Oy, who adds that the important thing is to gain experience from Fukushima. Finland is not located in an active seismic area, and has managed to find a solution to the storage of spent nuclear fuel (buried underground in specific canisters), which encourages the Finns to trust this industry. EPR technology is present on Finnish soil through project Olkiluoto 3, whose project owner is Areva.
L'Usine Nouvelle, 15/04

Toshiba re-examines nuclear targets
the company, one of the world’s largest manufacturers of nuclear reactors, expects the nuclear industry to slow down on the short term, following Fukushima’s accident. However, the group’s President remains confident that the global demand for nuclear energy should remain stable on the long term.
Ft.com, 14/04

Energy efficiency at the heart of energy and climate issues
As the world population will increase by 50 % by 2050, demand in energy should double over this period. One of the most promising solutions to solve the energy demand problem lies in energy efficiency. Philippe Delorme, general manager for innovation and strategy at Schneider Electric, explains that energy efficiency allows for a rapid return on investment of about three years: “Solutions for reducing energy consumption in buildings, data centers of in the industry are simple and quick to implement”. In commercial buildings, Schneider Electric offers solutions that allow up to 70 % in energy efficiency and up to an average of 30 % in industry.
La Tribune, 21/03

French nuclear industry willing to learn the lessons
French Energy Minister Eric Besson and Minister for Ecology, Sustainable Development Nathalie Kosciusko-Morizet attended a French parliamentary hearing committee on nuclear energy aimed at discussing the review of the French nuclear park. Besson said that “France has to learn as much as possible from this catastrophe” but yet claimed that the country was right to opt for nuclear energy since it provides energy independence, cheaper electricity and reduced carbon emissions. French Ecology Minister Nathalie Kosciusko-Morizet explained to the commission that independent experts will be asked to check the safety and security standards of the French nuclear reactors.
Le Figaro, 17/03

Governments under increasing pressure on nuclear power
Several governments are increasingly coming under pressure regarding the safety of their nuclear parks. In the United States (U.S.), where the first calls for a moratorium on nuclear energy are being heard, President Barack Obama reasserted the importance of nuclear power within the U.S. new energy policy which is based on clean energies. In Germany, Chancellor Angela Merkel had to declare a three-month moratorium regarding the life extension of the country’s 17 nuclear power plants. An independent commission will have to verify each plant’s safety measures and to take into account that in Japan what was considers as “improbable” happened. Russian Prime Minister Vladimir Putin also ordered the relevant ministries to “analyze the current state of the nuclear power plants and the perspectives for the future” within a month. The European Commission decided on Tuesday that stress tests of all the nuclear power plants in Europe will have to be conducted, Energy commissioner Gunther Ottinger explaining that “The goal is to re-evaluate all the risks: earthquake, floods, tsunami, terrorist attack, power breakdown”.
Les Echos, Le Figaro, The Wall Street Journal Europe, Financial Times Europe, 16/03

Egypt to launch tender for first nuclear reactor
The Egyptian Nuclear Power Plants Authority (NPPA) has confirmed its will to launch a tender concerning the country’s very first nuclear reactor, which would be constructed in al-Dabaa. Egypt’s civil nuclear program is supervised by the International Atomic Energy Agency (IAEA), and is intended to provide for the country’s increasing needs in terms of energy. Hassan Younis,Egypt’s Minister of Energy, intends to maintain fair competition among all candidates.
Ubifrance, Af.reuters.com, 09/03

Successful kick-off event of the Nuclear Assystem-Atkins Alliance
Both companies have officially launched their nuclear joint-venture on Tuesday, February 8th in Paris. French Minister for Industry, Energy & the Digital Economy Eric Besson, Anne Lauvergeon, CEO of Areva, and Sir Peter Westmacott, the British Ambassador to France, were attending. In his speech, Eric Besson stated that “Great Britain was among France’s best allies” in the nuclear field, and insisted that such strategic alliances “are necessary in order to develop the ability to intervene in markets on an international scale” and compete with American companies. According to him, this operation goes further than just making Assystem & Atkins better able to provide for their clients’ needs, and has a truly strategic aspect that constitutes “the basis of a Franco-British alliance in nuclear engineering”.
AFP, Les Echos, Enerpresse, 08/02

French “nuclear team” prepares for South Africa
Anne Lauvergeon, CEO of Areva, Henri Proglio, CEO of EDF, Gérard Mestrallet, CEO of GDF Suez and Patrick Kron, CEO of Alstom, welcomed Elizabeth Dipuo Peters, South Africa’s Energy minister, during her visit in France. Eric Besson, the French Industry and Energy Minister, said that France wants to set an industrial and institutional partnership with South Africa, which plans to adopt a new energy policy, which will double its electrical capacity by 2030 and install 9,600 megawatts of nuclear power, which represents the equivalent of six EPR reactors. South Africa has a long story of cooperation with France, as Framatome (which later became Areva) built the only 2 reactors in the country during the 1980s.
La Tribune, 07/02

Jordan about to launch invitation to tender for nuclear power station
The Atmea (Areva), the Candu (EACL) and the VVER (Rosatom) reactors are competing for the contract, while GDF Suez is considering submitting a common offer with Areva. The station is to be built in Amman, which implies that wastewater from the nearby city will be used as cooling water. Although this technology has already been used in Palo Alto (USA), it still remains a “technological challenge”.
Les Echos, 21/01

DCNS considers developing small size nuclear reactor
Naval company DCNS is eager to develop an underwater small size nuclear reactor, as part of its diversifying strategy. The company is about to launch studies to approve the “FlexBlue” project. DCNS is confident enough to announce it will develop the project with AREVA, EDF and the Atomic Energy Commission (CEA). “FlexBlue” will be a 100-meter long cylinder that will weigh 12,000 tons. DCNS plans to build it 100 meters deep. The 50-to-250 megawatt reactor will be linked to the ground by cables. According to Les Echos, the companies are still in talks and AREVA is eager to study the economic viability of the project for the moment. DCNS plans to start the construction of the reactor in 2013 and to achieve it in 2016.
Les Echos, 20/01

Duke Energy buys Progress Energy
The North Carolina-based energy group, Duke Energy, announced its deal to buy Progress Energy for USD13.7 billion and create the largest power utility in the United States. The two companies said that their deal was intended to create a less risky business that would be better able to execute their plans for heavy capital investment. Duke and Progress have some nuclear power projects to complete. They already have seven nuclear power plants and twelve reactors for a total capacity of 9 gigawatts. Progress plans to build two AP100 reactors in Florida and Duke will build two Westinghouse reactors in South Carolina. The deal will help the two companies service their nuclear plants. Duke had previously signed an agreement with Areva in June 2009 to carry studies for the construction of an EPR.
Les Echos, 11/01

A difficult year for the French nuclear sector
Les Echos & Le Point assess the year 2010 for the French nuclear sector. Both insist on the strained relationship between Areva and EDF and its direct consequences, recall Areva’s failure in Abu Dhabi and the open war between Henri Proglio, CEO of EDF and Anne Lauvergeon, CEO of Areva. As soon as he was appointed at the helm of EDF, at the end of 2009, Henri Proglio questioned Areva’s strategy and said that the French nuclear sector was “a mess”. One month later, Areva lost a $40 billion nuclear deal to South Korea's Kepco in Abu Dhabi. Then, the Roussely report, issued in the summer 2010, said that Areva’s EPR reactor was safe and reliable but too complex and too expensive. He added that the EPR reactor may have to be rethought and simplified. By the end of the year, EDF lost its partner Constellation for the construction of two EPR reactors in the United States and Areva finalized a long-awaited capital increase, raising only €900 million instead of the €3 billion initially expected.
Les Echos, 03/01, Le Point, 06/01

China announces nuclear fuel breakthrough
China announced on January 03rd that its state-run company, China National Nuclear Corp, just mastered technology for reprocessing fuel from nuclear power plants. This breakthrough may enable China to greatly increase the supplies of carbon-free electricity to support its booming economy, according to state television CCTV. The new technology will extend by many times the amount of power that can be generated from China's nuclear plants as fissile and fertile materials are recovered to be new fuel. “China's proven uranium sources will last only 50 to 70 years, but this now changes to 3,000 years,” CCTV reported. However, no details were given on when or even whether China would begin reprocessing this on an industrial scale. Moreover, this only represents the first step towards mastering the entire nuclear cycle.
Le Figaro Economie, 05/01

Fortum has the green light to build a second EPR reactor
Matti Ruotsola, Executive Vice-President of Fortum explains that its company is eager to spur competition in the French market of electricity in an interview published in Les Echos. Fortum is a shareholder of TVO, who is building a EPR reactor with AREVA in Finland. He adds that Fortum has the government’s green light to build a second nuclear reactor. EPR is one the possible choices but there is no rush as the company has five years to apply for a construction license.
Les Echos, 30/12

State-run corporation Rosatom is growing faster and faster in the nuclear power sector
Rosatom is experiencing a fast growth worldwide. Its subsidiary ARMZ completed on Monday the buying of a control stake in the Canadian miner Uranium One for $610 million plus a stake in its uranium mines in Kazakhstan for Uranium One. The Russian firm already held 23.1% of Uranium One and has increased its stake to 51.4%. On December 15th, AMRZ also bought the Australia-based miner Mantra Resources for $1.2 billion. Rosatom is also planning a partnership with Siemens, former partner of AREVA. The Russian company concluded a deal with Turkey for the supply of four 1.2-megawatt VVER reactors budgeted $20 billion. In November, Rosatom signed a contract for the units 3 and 4 of Tianwan plant in China. In October, it won three orders: one for a 1.000-megawatt reactor in Venezuela, another one for two 1.2000-megawatt units in Vietnam and the last one in Ukraine for the supply of two reactors and the construction of a nuclear fuel factory.
Les Echos, 29/12

General Electric, Hitachi and EDF may have to change their objectives in the nuclear sector
General Electric & Hitachi have a target of securing orders for 38 nuclear plants by 2030, 10 of which were expected to come from the United States. According to Hiroaki Nakanishi, the president of Hitachi, the demand is waning in the US and the country is unlikely to build any additional nuclear plants until 2020. EDF subsidiary Unistar may also have to change its plan after it lost its partner Constellation for the construction of an EPR reactor in Maryland. The American Department of Energy offered a $7.5 billion loan for the project. EDF had not reply immediately to the offer as it owned only 50% of Unistar at that time. EDF recently said that it was in talks for the loan.
Les Echos, 29/12