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Affichage des articles dont le libellé est edf areva flamanville. Afficher tous les articles
Affichage des articles dont le libellé est edf areva flamanville. Afficher tous les articles

jeudi 30 mars 2023

In English: EPR, the bumpy road of French nuclear power

 Studying the history of the EPRs goes back so far that it is hard to believe that it is about the same sector, still under construction.    by Paul Marion, "la Tribune de l'Économie"  26/03/2023


                                            Flamanville power nuclear station, still on construction (credit: Reuters)


Everything began at the Franco-German summit in 1989. At that time, the agreement between President Mitterrand and German Chancellor Helmut Kohl was moving forward hand in hand and both of the then partners wanted to symbolise their cooperation in ambitious projects. What could be more strategic than the energy sector? The European Pressurised Reactor programme was officially launched in 1992. In a Europe still frightened by 1984 Chernobyl disaster, the EPR promises to deliver more power with optimum safety.

But behind the good understanding of the leaders, the relationship between the French and German engineers was far from idyllic because the opinions were too different. At the end of the 1970s and 1980s, the French nuclear industry was ultra-competitive and was being exported all over the world. Moreover, EDF was not happy to have to design a new reactor and to throw away its work on the REP-2000 reactor, the announced successor to the N4+ reactor, the last model to have been commissioned to date in France at Civaux in the late 1990s.

                                            Map of French nuclear civil sites


The French and German safety authorities also have different ideas, with Germany calling for much thicker concrete and steel protective enclosures around the reactor. Without reaching agreement, each added its own regulations to the specifications, which were designed as a cathedral of standards. Until it becomes impossible to build? "The EPR is too complicated, almost unbuildable," admitted former EDF CEO Henri Proglio during a hearing at the National Assembly.

Monster of steel and concrete

"The EPR technology is not so different from that of existing reactors. All its difficulty comes from the safety architecture, involving much more concrete, steel, and warning systems than the previous reactors," summarises Nicolas Goldberg, an energy expert at Colombus Consulting, to describe this "monster" of steel and concrete that former EDF executive director Hervé Machenaud talks about.

Unfortunately, Germany is a capricious partner, which after dictating its conditions, withdraws from the project because the government changes. Indeed, in 1998 in Germany, the ecologists who entered the government stopped the German nuclear projects. The French industrialists alone inherited a reactor design that they had not really wanted and that did not guarantee them any orders.

At the end of the 1990s, the climate became unfavourable to nuclear power in France. Under pressure from his ecologist allies, represented in the government in 1997 by Environment Minister Dominique Voynet, Prime Minister Lionel Jospin delayed launching the first EPR projects.  Impatience grew in the industry.

Two failures

Faced with the absence of work in France, French companies looked abroad for new markets and found them. In Finland, Areva, ex-Framatome (manufacturer of nuclear boilers and historical partner of EDF), won the manufacturing of two EPR reactors in Olkiluoto in the south-west of the country, together with Siemens. Too happy to have the world's first reactors built, the two companies conceded considerable discounts.

Without making her fortune, Areva's boss, Anne Lauvergeon, wants to make Olkiluoto a showcase for her company's skills in order to win other contracts elsewhere. In its obsession to outstrip its rivals, whether EDF, the Americans from Westinghouse or the Koreans from Kepco, Areva has rushed and underestimated the scale of the task when only 10% of the design study has been completed.

 What should be a pioneering work is now a financial abyss that is gradually swallowing up its resources and the company itself. The budget swelled from 3.4 to 11 billion euros, as did the deadlines, which were finally twelve years late.

Deindustrialisation and loss of know-how

For EDF, the "project of the century" began in 2007, three years after the Raffarin government's approval. At Flamanville in the English Channel, proof of the proper functioning of the EPRs must be demonstrated, at a time when Areva is bogged down in Olkiluoto. From the Baltic to the English Channel, the same unpreparedness leads to the same failure. The costs are increasing in the same way, from 3.5 to 13.2 billion euros, with twelve years of delay at the very least.

In less than two decades, the reputation of the French nuclear sector has been damaged. How to explain two almost twin industrial failures? According to the conclusions of the Court of Auditors, the fierce competition between Areva and EDF has been undermining the French industry from inside, whose skills are almost lost after eleven years without any reactor production.

"De-industrialisation, synonymous with the loss of know-how in the production of concrete and the quality of welds, has weighed heavily on Flamanville in particular. The absence of mass production sites has prevented the maintenance of a network of subcontractors due to a lack of visibility. The same difficulties can be seen in all Western countries in building reactors, EPR or not. These difficulties are not inherent to the nuclear industry," insists Nicolas Goldberg, who notes that, on the other hand, "the construction of EPRs is not experiencing these difficulties in China," which is building reactors in series throughout its territory.

 In 2007, the Chinese entrusted Framatome and EDF with the construction of two EPRs in Taishan.

The Taishan and Hinkley Point plants to make people forget the Flamanville plant

Enlightened by its previous failures and supported by the recent experience of the Chinese, EDF manages this time to activate two first generation EPR reactors in Taishan within ten years. In another export victory, EDF was commissioned in 2013 to supply two EPR reactors to the Hinkley Point plant in the UK in collaboration with the Chinese CGN. Slower than Taishan but less difficult than Flamanville, Hinkley Point C is due to be completed in 2026. It is the last of the first generation EPRs to be built.

Since 2011, a second, simplified version of the EPR 2 has been in the pipeline, based on feedback from the construction sites.

"The EPR 2 should not even be called an EPR because it is so different. Compared to the EPR 1, we are removing a containment vessel, overlays, safety circuits and buildings to make a reactor that is half the price and, above all, much easier to build than the one in Flamanville," says Tristan Kamin, a nuclear engineer who points out, for example, that "we are going from 1,700 door references to less than 70.

An immense but not insurmountable challenge

Faced with the endless difficulties of the construction sites, could the pure and simple abandonment of the EPR project have been thought of for a while? "In 2011, EDF did not see itself starting from scratch. There is a ratchet effect. The further we go, the more money we invest, the less we can turn back," says Nicolas Goldberg. The completion of Taishan and Olkiluoto, the convincing progress of Hinkley Point in the United Kingdom, two EPR 2s co-built in the United Kingdom by EDF, give grounds for hope.

The future of France's energy depends on this EPR 2 model. Its design is currently being developed to reach 70% completion when the first construction sites begin. In February 2022, in the famous nuclear boiler factory in Belfort, Emmanuel Macron announced the construction of six new EPRs, marking the end of a twenty-year period of hesitation by the State for political reasons. The Head of State set a huge but not insurmountable goal. "The industry is ready to build this major project," proclaimed the Groupement des Industriels Français de l'Energie Nucléaire (Gifen), which praised the lessons of the past and the future prospects offered by the revival of the atom.

"That's it, we're out of the woods on EPRs. In China and Finland, the reactors are running. Elsewhere, the problems have been identified, even if the enormous cost of the EPR projects, which were initially presented as more economical, remains," Tristan Kamin agrees with Nicolas Goldberg. The fact remains that today, no electron has yet come out of an EPR nuclear power plant in France. Flamanville is due to go into service in mid-2024 at the earliest. That is 32 years after the start of the EPR programme.

lundi 17 avril 2017

Fessenheim nuclear plant shut down: the pros and cons.

Nuclear power station shut down in France: rather for political reasons or technical ones?

Map of French nuclear stations



Here are the parameters of the situation:


The nuclear power station of Fessenheim (Eastern France) is the oldest one of the French nuclear park (the old lady will compute 40 years of production in 2017). As such, it was considered to be the first to be closed in the wake of a green energy transition period. Nevertheless, EDF, Électricité de France, the operating utility, gathered its board of Directors in order to take a decision about the station decommissioning on April 6th.
The final decision was to postpone the closure after the commissioning of Flamanville EPR nuclear station (in Normandy, West of France), in order to avoid to produce less than the  63,2 GW limit set in the 2015 energy transition law. Though technical delays, this commissioning is still scheduled for late 2018. Moreover, the decision gives EDF the possibility to choose to close either the Fessenheim station or another one.

Nevertheless, the Fessenheim closure is still a thorny issue in a blurred political electoral campaign, but also for economic reasons.


Why all this fuss and this open opposition between EDF and the French government?


First, the closure was an electoral promise of presidential candidate Hollande
As soon as he expressed his idea, a lot of counter-measures were launched at a missile speed, the first being the job impact on the local area: indeed 2,000 workers are directly or indirectly involved in the nuclear plant. So what? 2,000 jobseekers more in a context where the joblessness is still skyrocketing?

Second, still on the political ground. in 2015, the law on energy transition was adopted. This law stipulates that the nuclear part in the French energy mix should be reduced from 75% to 50%. That’s implying that several power stations should be closed. But it implies moreover that the possibility of growth of EDF shall be sharpened widely. That’s a perspective that no company would accept easily, for the simple reason that the obvious aim of everybody’s company is to expand and expand its revenues.


What are the economic consequences of the Fessenheim closure?


Beyond the 2,000 positions jeopardised by the closure, here are some financial figures which may need a thorough analysis.
Indeed the power station delivers some €400 million of Ebitda, depending on the power wholesale prices.
Then, what is not so much emphasized in the public media, a third of Fessenheim station production is allocated to minority shareholders, mainly from Germany and Switzerland: EnBW, Alpiq, Axpo and BKW (they account for 15% of the capital of the power station), to pay for their minority stakes in the capital.

So, these financial parameters entail a compensation to be paid to EDF in case of closure, as a kind of damage: some €490 million shall be paid when both reactors will be shut down (normally in 2019 and 2021), with an adjustment made depending on power market price, until 2041.

Fessenheim power station, what is it?
The power station is composed of two reactors of 900MW each.
The station is located in an area considered as presenting seismic exposure and exposure to floods.
The staff accounts for 750 workers but gives work to some 1,250 more among contractors and
regional local firms.




EDF: a state company or an hybrid monster? 


You already know the hybrid vehicles but you don’t know what is a hybrid monster in the field of companies and societies…

The negotiations around Fessenheim closure highlight several judicial, economic and regulatory points which may be difficult to understand abroad.

Even if the French State is EDF’s main shareholder (its stake amounts to 85% of the capital), the State was unable to compel the company to abide by the presidential promise to shut down Fessenheim station. This promise was only words. Why? Because a president can’t decide by himself to close this or that: only the operator (here: EDF) or the ASN (the French nuclear watchdog) can apply a request for closure, either for lack of profitability or for security reasons (in the ASN case). The request procedure is really long and difficult.
Moreover, as a stakeholder, the State has appointed six administrators in EDF                                                                         board of Directors. But during the sessions, it’s forbidden for the State to vote when it is involved as a party in the negotiations. So its six administrators could not take part in the votes and decisions. Only the staff representing administrators and the independent ones remain able to vote, which make the final decisions really uncertain.
Then, when the president decided to reduce the part of nuclear generation in the energy mix from 75% to 25%, the law corresponding to this was amended several times, only to conclude that the part of the nuclear generation should not be above the present production, namely 63,2 GW, and EDF is interpreting this threshold not as a roof but as a bottom line.
Finally the implementation of an energy multi-year planning reportedly designed to pilot the State action in the energy field was not awarded to any ministry but to… EDF.

The Fessenheim case illustrates several dysfunctions: during five years, 2,000 jobs have been threatened by a possible closure. It’s simply non-economical.
Moreover during the discussions, the possible setting of a nuclear dismantling sector or the industrial future of the nuclear sites have never been considered.

From Véronique LeBillon and Anne Feitz, « Les Échos »





samedi 23 mai 2015

EDF bid on Areva reactor division


Energygeopole blog provides latest energy, nukes, oil and gas, renewables news from France, acting as a global actor through its role in the European Union, and through its majors in the energy sector. Stay connected with the latest trends and analysis through translations of relevant articles from the French press into English on a weekly basis.

EDF offers €2 billion for Areva nuclear division

ANNE FEITZ / JOURNALIST AND VERONIQUE LE BILLON / DEPUTY SERVICE MANAGER| ON MAY 22ND

www. lesechos.fr


JUST NEW - Friday, EDF CEO, Jean Bernard Levy sent his bid to Areva directors, namely Philippe Varin and Philippe Knoche, about the buy-out of Areva nuclear division (namely Areva NP, former Framatome), as expected. According to our information, this offer amounts to some €2 billion, after deduction of liabilities. More precisely, this amount is calculated on the EBITDA multiplied by a 7,5 ratio, of the activity, based on the perimeter and on the restructuring which will be set up. « That’s an indicative offer, which shall be followed by a set of diligences, before being modified to become a definitive bid, to be linked to suspensive conditions possibly », said a source close to the negotiation. « At that point, EDF offer covers around a third of Areva financing needs, which amount to some €7 billion », the source adds.

During his statements made this week, Jean Bernard Levy hammered it clearly. Even if EDF bid answers to a State’s request, EDF main shareholder, this offer shall be industrially based and shall focus on activities, in which EDF owns a real know-how. As such, the activity in view counts three divisions : services to the installed base, fuel assembling and equipment manufacturing, all three divisions amounting to 15,000 jobs. EDF intends to avoid the risks linked to Areva past operations. For instance, the Finland EPR (known as OL3) agreement would be kept out of this possible perimeter, as heavy losses are recorded and as an arbitration proceedings is pending between Areva-Siemens and TVO, their customer. Friday afternoon, when attending a meeting with the trade-unions, Emmanuel Macron (Minister of Economy) raised some ideas about a possible warranty awarded by the State on OL3. Moreover, EDF hopes too that the uncertainties linked to the Flamanville EPR tank damage, detected by the authority of nuclear safety several weeks ago, would be lifted before the possible negotiation closing.

The activities so targeted would be organized within an autonomous structure, with skilled managers, and would be detained by EDF as the main shareholder, with some external partners for the remaining stake. « EDF has already been approached by French companies, interested in taking a stake in the structure », a source says. When the company thus incorporated would be enough mature, it would be listed on Paris Stock Exchange.

 EDF offer includes reactor engineering and conception. The corresponding working force, namely 1,200 engineers, would be integrated in EDF teams.

According to our information, the power operator intends to finance its share in this investment by a transfer programme. Indeed the company sticks to its target, namely generating a free positive cash flow after dividend deduction in 2018.

Whereas Areva management did not show any enthusiasm for this offer, Emmanuel Macron, the Minister of Economy, did not give any precise agenda to the trade unions this afternoon. The State shall take a decision « up to summer », he indicated. A meeting focusing on Areva future shall be convened at Elysées Palace on June, 3rd, but it won’t be decisive.

Going further:
http://www.lesechos.fr/industrie-services/energie-environnement/02186049394-nucleaire-edf-fait-une-offre-a-plus-de-2-milliards-deuros-sur-les-reacteurs-dareva-1121903.php
http://www.bloomberg.com/news/articles/2015-05-18/edf-will-make-offer-for-areva-np-within-days-ceo-tells-figaro

in this blog:
http://energygeopole.blogspot.com/2015/04/nuclear-sector-fault-detected-in-steel.html
http://energygeopole.blogspot.com/2015/03/todays-article-will-deal-with-arevas.html