Video can be viewed here.

AREVA and Fresno Nuclear Energy Group announced an initial agreement in for Clean Energy Park at the beginning of the year and strengthened the partnership to bring nuclear power and renewable energy to the area with a Memorandum of Understanding in April (http://us.arevablog.com/2010/04/28/areva-and-the-fresno-nuclear-energy-group-move-closer-to-clean-energy-park/).

At the beginning of July, AREVA signed an agreement to develop a third Clean Energy Park project, this one for New Brunswick, Canada.

Despite recent negative reports in the media, Saskatchewan is the most supportive province in Canada for the nuclear industry.  These results from recent polls showing support for nuclear energy and uranium mining are no surprise to Saskatchewan industry.  We run our own polls twice a year and have data going back into the 1990s.  Basically, Saskatchewan residents are nuts about uranium mining, with public support ranging as high as 84% and not going below 70% anytime in the past decade.  There is not a politician or an interest group in the world that wouldn’t be happy with these results!

At a My Future Is Here town hall meeting, attendants were asked to post their age and opinion on nuclear power.

In addition to supporting uranium mining, Saskatchewan residents demonstrate a high level of trust in both AREVA and Cameco to do their jobs properly.  The majority of Saskatchewan residents also support nuclear power, isotope/research reactor development, uranium enrichment/conversion and even nuclear waste management in the province.  When supporters are asked if they would also support the location of a nuclear facility in a suitable location in their community, the majority say “yes.”  Interestingly, during the Uranium Development Partnership hearings and wild discussions on isotope production, support for a research/isotope reactor in the province climbed to 75%.

Jim Prentice, Minister of the Environment, Canada

“Nuclear will play a key role in our clean energy strategy. And the reality is: nuclear is non-emitting. Nuclear energy displaces between 40 and 80 million tonnes of greenhouse gas emissions annually relative to producing the same quantity of electricity from gas or coal.

Canada has been a pioneer in the development of nuclear technology for peaceful purposes. Today our nuclear industry generates billions of dollars of economic activity and accounts for thirty thousand direct and indirect jobs…. One of the key phrases that you hear is that we’re undergoing a nuclear renaissance. It’s a form of electricity that is being embraced by many countries around the world.

At the International Energy Agency Meetings in Paris last week, leaders around the world re-stated what we have known for some time: without a significant increase in nuclear power, the world will be unable to meet required greenhouse gas reduction targets….

The nations of the world are responding to the challenges of climate change. Canada has developed many innovative technologies that will be vital in meeting those challenges. We are researching, developing and deploying many new technologies. But the nuclear technology that we did so much to pioneer a half century ago will remain at the forefront of the global quest for clean and reliable energy.”

– Jim Prentice, Minister of the Environment, Canada

We’ve collected some of the highlights from last Friday’s first “Jacques Talk” conference call with AREVA North America President Jacques Besnainou. The conversation was wide-ranging and open, and we’re really glad Jacques had the opportunity to talk directly with the nuclear energy blogging community. If you’re a nuclear energy blogger and you’d like to be in on the next conference call, send us an email.

They’re all in MP3 format.

Jacques Besnainou on the NYT Article about Olkiluoto

Jacques Besnainou on Recycling

Jacques Besnainou on Canadian Loan Guarantees

Jacques Besnainou on Lessons Learned from Olkiluoto

Jacques Besnainou on International Enrichment Markets

If you’d like to listen to the whole call unedited, you can download it here.

It is not enough, however, to consolidate existing resources. We must also prepare the future, by hiring the right people and by organising a strong global supply chain.
Crisis or no crisis, AREVA needs the best people available to deliver the best products and services to our customers. In 2008, AREVA hired 12,000 new recruits globally. We have now, however, decided a recruitment pause. Sorry for the latecomers.
 
At the same time, we invested massively in the supply chain. In some cases, this was done through acquisitions. Two years ago, AREVA purchased Sfarsteel, one of two companies on Earth that can deliver very large, nuclear quality forgings. Sometimes also, we expanded capacities or created new factories, as I have mentioned before.
 
But in other cases yet, we chose to build long-term, strategic partnerships in order to ensure future deliveries. Let me give you a few examples of these partnerships. For convenience, I will limit myself to the news of the last six months.
 
Last October, AREVA partnered with Northrop-Grumman to build new manufacturing capacities for heavy components in Newport News, Virginia. This will be the first new nuclear manufacturing factory in North America in four decades.
 
One month later, last November, AREVA signed an agreement with Japan Steel and Works – the second company (with Sfarsteel) which knows how to produce the largest forgings of the quality required for nuclear components. JSW will give AREVA enough forging manufacturing slots for six nuclear plants each year from 2012 to 2020. We
were the first non-Japanese company ever to be invited to take a share in JSW’s capital.
 
Last December, we signed long-term partnership agreements with Rolls Royce and Balfour Beatty for the local engineering, manufacturing and construction of AREVA nuclear reactors in the United Kingdom.
 
And in February, we reached an agreement with the Indian nuclear commission to build a partnership with various Indian players for the delivery of at least two reactors in Jaitapur, Maharashtra.
 
Typically, these partnerships serve both a global and a local purpose.
 
Globally, they give AREVA’s partners an opportunity to provide highly specialised components to new builds around the world. Between us, this is already happening with Canadian companies as well. The plant that we are building in Finland has Canadian valves and a Canadian simulator. Canadian simulators are being installed in France as I speak, including one just below AREVA’s head office.
 
Locally, these partnerships allow us to build at a lower cost, and with maximum benefits for the local economies. They help us build local skills in a way that is consistent with our responsibilities as the industry leader.
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How does this apply to the Canadian situation? Well, it applies directly. Since AREVA has a strong record of partnering with local companies on other markets, I do not see why anyone could believe that the situation would be different in Canada.
 
Canada has a great nuclear tradition, especially in Ontario. Even more importantly, this country kept its skills alive when others – some of them very close to here – were letting their own industry decay in times of low demand. There are 69,000 engineers in Ontario alone, and AREVA’s database includes the resumes of 25,000 Canadian nuclear professionals. This is a very attractive situation for a company like AREVA which needs the best skills worldwide. It would therefore be absurd to believe that, were AREVA to win a reactor in Canada, anybody with nuclear skills in this country could lose their job. The exact opposite is true: we would not only need to preserve the existing skills, but to build even more of them in Canada, as we have done in the United States, China, Japan, India and so on.
 
This is even more necessary when you consider that Ontario is much more than its own market. This province is at the center of a much larger North American market. This, of course, is very convenient for me today since I am not allowed to talk about the Ontario market itself.
 
First, there is Western Canada. Some oil sand projects have been delayed recently; but I don’t think that anyone doubts that they will start again when the price of oil shoots up. These projects will require enormous amounts of energy for extraction and upgrading.
 
Last year, AREVA did a simple, but telling study. We added all the oil sands and refinery projects scheduled to come on line between now and 2030. Then, we assessed what it would cost to power these new projects with natural gas alone. This showed that powering the Alberta oil industry alone would require as much natural gas in 2030 as all of Canada consumed in 2007. This would happen just as Canadian reserves for natural gas reach their natural peak. As a result, Canada would become a net importer of natural gas 15 years from now.
 
This shows that Western Canada needs to diversify its power sources, if only to continue powering its industry when the natural gas resource dries up. I am convinced that nuclear will be part of the solution.
 
But there is also the United States. U.S utilities have already announced that they will build seven AREVA reactors. Four of these projects are already in front of the U.S safety authority, while three others have been delayed due to the current economic crisis. When this crisis is over and AREVA finds itself building two reactors or more at the same time in the U.S market alone, we will need all the help we can get – engineers, valves, electrical equipment, construction capacities … you name it. The Canadian industry would be a very valuable partner in this adventure.
 
And nuclear is not the whole of this story. AREVA believes in clean air in general, not only in nuclear. This nuclear energy should therefore be complemented by the development of renewable energy where it makes economic sense. Two years ago, AREVA acquired a majority stake in Multibrid, a wind power company based in Germany with a technological leadership for large, offshore wind turbines. Demand for these turbines largely exceeds supply, so Multibrid is now looking for a site to build a second plant for blade manufacturing and assembly in North America. A team is being set up in Canada to compare possible sites and to liaise with developers all over the continent. With its recent Clean Energy Act, Ontario showed that it was ready to commit to clean energy. I do not want to anticipate on future announcements, but I can tell you already that AREVA has taken note. And we will obviously give priority to jurisdictions where AREVA, as a whole, feels welcome.
 
The electricity industry is at the dawn of a new era – an era that promises to deliver steady, reliable, zero emissions energy to meet the growing need in both developed and developing nations. AREVA is proud to be the industry leader at this time. We look forward to helping Canada carve for itself a significant role in this growing market.

I am very glad to have this opportunity to address the largest think-tank in Ontario and to exchange views with such an impressive audience.
 
I want to say first, at the risk of disappointing some of you, that I will abide by the rules that stop all vendors from discussing the current RFP in Ontario. I am allowed to say, however, that the current Ontario process is part of a global phenomenon – that of the nuclear renaissance.
 
This renaissance has been slowed by the ongoing global economic and financial crisis. Some potential customers, such as South Africa, suddenly discovered last Fall that they had lost access to the financial markets for the financing of very large projects. Others, such as some U.S utilities, have delayed their investment plans as they felt the need to clean their balance sheets before going forward.
 
But in spite of these delays, the nuclear renaissance remains a reality. Twenty-three building sites are active as we speak: sixteen in Asia, five in Russia and two in Europe. Licensing for future projects is going ahead in the U.S, Canada and U.K, among other countries.
 
More importantly perhaps, the nuclear industry is still investing. My own company announced just last week a major investment plant to expand the capacity of existing equipment factories in Europe.
 
This is a sign of an industry which remains confident that it will have to answer a growing global demand. Part of this demand is currently delayed, to be sure. But we are used to thinking in terms of decades, not weeks or months. Whatever the current difficulties, it is a simple truth that in the next few decades, huge investment will be needed to cover the world’s energy demand. In the long term, demand for energy will continue to grow. This is a moral imperative – there is simply no way to reduce poverty in a growing world population without increasing our energy consumption. The current generation capacities will age and need replacement. The prices of fossil fuels may be low today, but oil & gas reserves are not infinite. These prices will almost certainly escalate when economic growth resumes. In the meantime, the world will keep looking for CO2-free electricity generation to reduce global warming.
 
These are all reasons why the demand for nuclear remains strong. But in order to go through an economic crisis such as the one that the world is experiencing now, demand is not enough: we need to adapt and organize to answer that demand. This is what has happened all over the world in the nuclear industry in the past few years.
First of all, we have experienced significant consolidation. Initially, this was due to the increased costs of designing and building nuclear plants that are both safer and more economical than the existing fleet – the models known as Generation 3 reactors. It took hundreds of millions of dollars to design Generation 2 reactors. The bill amounts to several billions for each Generation 3 design.
 
This means that no one can go it alone anymore. Our industry has had to give up on the quaint, outdated notion of national champions able to do everything by themselves. AREVA was created in 2001 through the merger of French, German and American companies. And in 2007, we partnered with Mitsubishi to create ATMEA, a joint-venture for new plant design and for the development of new nuclear fuels. My accent may have made you think otherwise, but the truth is that I am not representing a French company at all; I represent a multinational company headquartered in Paris. This company does not sell a French technology, but a global one. A technology that evolved out of an U.S design thanks to the common work of French and German engineers, who for our next products will be complemented by Japanese teams; and that was proven out of experience feedback from China and Finland. Out of the 102 nuclear plants that AREVA built or is currently building, only 59 are in France and the rest can be found in ten different countries over four continents.
 
And this is the only way it can be today. AREVA was not the only company to gain a global industrial foothold in the last decade; all our major competitors did. In 2006, Toshiba purchased Westinghouse, creating the third-largest nuclear company in the world, straddling the Pacific Ocean. In 2007, General Electric and Hitachi joined forces in a series of joint-ventures. This is the new face of nuclear -large multinational companies reaching across the continents, which can bring together R&D teams of thousands and invest billions of dollars in the development of new designs. AREVA spent 1.2 billion dollars in research and development last year; this does not include Mitsubishi’s share of our new reactor developments.

Today’s announcement of a memorandum of understanding for 80 offshore wind turbines for AREVA’s subsidiary Multibrid signals a major step forward for our renewable business.  Apart from the fact that this will be a contract worth over $900 million for AREVA, it reinforces our position as a major player in the renewables sector.

These wind turbines will be located off the North Sea coast of Germany, but AREVA is looking for opportunities for new business at various locations in North America. Our company remains one of a handful capable of producing the 5 MW offshore wind turbines.

AREVA also is involved in other renewable sectors, such as biopower (biomass to electricity). We have constructed 100 biomass facilities around the world and are now looking to build more in the United States.

Last September, AREVA and Duke Energy formed ADAGE, a joint venture focused on providing biopower solutions to U.S. electricity customers. Since its formation, ADAGE has moved forward with the goal of building 10-12 facilities over the next six years. In February, ADAGE announced a preliminary agreement with Energy Northwest to market 50 MW biopower facilities in Pacific Northwest.

Developing solutions for power generations with a small environmental impact from renewables, such as wind and biomass, along with clean nuclear energy is a main focus of our business.

“AREVA Canada is very pleased that a report of this calibre has been produced for the people of Alberta,” said Armand Laferrere, President and CEO of AREVA Canada Inc. “A knowledgeable discussion is critical for Albertans to make important decisions about clean energy options for the rovince’s future.”

The Report on Nuclear Power and Alberta will be the starting point for a province-wide public consultation process that will guide the government’s position on nuclear power generation in the province.

“We believe that Alberta is on the cusp of leadership on diversified and clean energy sources for the province. Broad public consultation is an important step in assuming that leadership role,” said Laferrere. “AREVA has worked to keep the public aware and informed about the latest technology that makes nuclear generated power exceedingly clean and safe, and we look forward to participating in future consultation when asked.”

AREVA Canada has been in Canada for more than 40 years and employs 925 people in 18 locations across the country. Its Canadian operations include uranium mining, electricity transmission and stribution, equipment manufacture and engineering services for nuclear power generators.

by Armand Laferrère, president and CEO of AREVA Canada Inc.

Clean energy and new technologies to produce environmentally-friendly products will play a major part in Ontario’s economic renewal program. Given its ability to produce reliable, emission-free, base load electricity, Ontario’s nuclear industry can and should play a central role in the creation of a stronger and more sustainable provincial economy.

Ontario has a running start in becoming a worldwide centre of excellence for nuclear energy. Almost 90% of Canada’s nuclear reactors are located here, producing half of the province’s electricity. We’ve been generating nuclear power for almost 50 years, so we have a deep pool of skilled nuclear scientists, engineers and operators, and a world-leading safety record.

Building new nuclear generation and infrastructure creates thousands of high-paying, long-term jobs for contractors and subcontractors in several industries. Given the long lead time, new reactors aren’t exactly in the “shovel-ready” category of infrastructure projects. However, by announcing a comprehensive strategy to become a leader in nuclear technology and generation, the government would unleash a host of planning and procurement processes. These processes alone, given their size and scope, have the potential to boost confidence in the province’s economy.

This kind of program would also dovetail nicely with emerging energy policy in the United States. We already know that nuclear will play a larger role in U.S. power generation. The Nuclear Energy Institute says, “Maintaining nuclear energy’s current 20% share of generation would require building three reactors every two years starting in 2016.”

As this “clean energy imperative” matures, the energy provenance and carbon footprint of imported goods will be more closely scrutinized than ever before. With an industrial and manufacturing base powered primarily by nuclear energy, Ontario would become known as a place where green products are made, helping to cement our export relationship with the United States.

Nuclear energy also fits Ontario’s vision of economic renewal. The government has announced its intention to help fill our future with electric cars. A TV ad from Ontario Power Generation shows commuters pulling electric cars into their driveways at the end of the day, plugging them in for the next morning’s commute. The voice-over asks where the power will come from. The answer follows: “nuclear that runs night and day, day in and day out.”

This makes sense. Hundreds of thousands of electric cars being plugged in simultaneously before suppertime will require a reliable source of clean base load power, and lots of it. And if those cars are being plugged in on a hot, windless day in the midst of a summer heat wave — when wind turbines won’t turn, reservoir levels above hydro dams are lower and air conditioning is cooling homes and businesses — then demands on the province’s future power grid will be sky high.

Finally, there’s the matter of energy prices. Put simply, countries with large nuclear capacity enjoy cheaper electricity. For proof, look to France and the United States. France has the largest proportion of nuclear energy in Europe and the cheapest electricity on the continent. As for our southern neighbours, a recent policy paper by the Institute for 21st Century Energy and the U.S. Chamber of Commerce confirmed that America’s 104 nuclear reactors provide the cheapest base load electricity per kilowatt hour.

Looking beyond the recent, recession-induced decline in the price of oil, the long-term outlook for energy indicates higher costs, tighter supply and greater demand for zero-emission sources. Countries that have invested heavily in nuclear already have a price advantage over other sources of energy, and the new generation of reactors under construction will widen the gap even further.

It goes without saying that clean, secure, reliable, low-cost energy is an enormous advantage for homeowners and a major incentive for new business investment. The fundamental link between energy and the economy has already been recognized in Washington, where the Obama administration has made these two areas top priority during its first weeks in office.

The Ontario government is moving in a similar direction with its vision of economic renewal that includes innovation and clean energy. That vision should include an expansion of the province’s nuclear assets beyond current and planned capacity. By making a commitment to establish Ontario as a leader in 21st-century nuclear technology, and by encouraging our educational institutions to foster the next generation of nuclear engineers and technicians, the government would be investing in infrastructure today that will create the jobs of tomorrow.