Anne Lauvergeon, CEO of AREVA, answers some very important questions about AREVA, the company’s strategy, the EPR™ reactor, and the potential of the nuclear energy industry.

AREVA was not selected for the UAE reactor bid. What lessons do you draw from this decision?

It was bad news. When we decide to compete, we compete to win.

Our competitors and AREVA offered two very different products in terms of power rating, nuclear safety and industrial safety. To make a simple comparison, the customer had the choice between a 100 m² house with an armored door and a 120m² house with an armored door, an alarm and video surveillance. Obviously, not for the same price. The safety authorities in Western Europe and the United States, which set the standards, require that new reactor construction be able to withstand the crash of a wide-body aircraft and all types of serious accidents, including a core meltdown. This is a government requirement that does not exist in all countries. Will the safety authorities come to an agreement, or are we headed towards a dual standard for nuclear power? The answer to that question is vital to our business strategy.

But let’s be clear. AREVA is aiming for one third of the new build market. We’re not going to go after everything. And not everything is going to come to us.

Was the Korean bid really a lot lower than the French one?

Yes, but the bid was also “lower” in terms of technology and safety. The euro/dollar exchange rate was also a factor. The Korean reactors have not yet been certified by the UAE safety authority. In addition, the group is still in the running for future projects, given its fuel recycling expertise.

What do you have to say to those who think that the EPR™ reactor is too expensive and too complicated?

With our EPR™, ATMEA1™ and KERENA™ reactors, we offer customers a range of solutions at different power ratings. These are some of the most advanced reactors in the world in terms of safety and security. I believe in nuclear power, but I also have a responsibility towards my children’s generation and those that follow. That’s why we’re selling the safety of zero impact in the event of a core meltdown or the crash of an aircraft. Because we don’t want another Chernobyl, and the events of September 11 have left a mark. This safety comes with a cost; it requires more steel and more concrete. The real question is how high our standards for new reactors are. The safety authorities have set the bar high. That was the condition for public acceptance in Europe and the United States.

As to how competitive the EPR™ reactor is, let’s look at the facts: we signed the largest contract ever with China in 2007 and two EPR™ reactors are under construction there. In February 2009, we signed a Memorandum of Understanding for two others in India and, just before Christmas, we received a letter of intent for a first EPR™ reactor in California. There are a total of four EPR™ reactors under construction in the world and 19 others are planned. If it was not competitive or too complicated, how would we have been able to export it?

Do you still believe that nuclear power has a future?

I’m pragmatic: nuclear power isn’t THE solution, but how are we going to produce twice as much electricity and cut CO2 emissions in half by 2050 if we don’t use nuclear energy, the main source of clean, abundant and safe energy? For the same reason, I don’t see how we can do without renewable energies whenever appropriate. For a long time now, I’ve been promoting an objective debate on the advantages and disadvantages of each solution. If there was a silver bullet, we would know it by now!

I’m glad to see that we’re slowly leaving the ideological wars behind us, and I will continue to follow this line of action because I believe in it as a citizen, not just because it is my job. In this respect, while the Copenhagen summit didn’t culminate in a concrete agreement, it put things on the table. It also made it clear that the climate change battle concerns first and foremost the OECD and the Big Five!

Doesn’t losing this contract cast doubt on AREVA’s strategy?

Not at all. First of all, every call for bids is unique. We may not have been selected in the United Arab Emirates, but we made the short list. There are lessons to be learned from this call for bids, but our business strategy and our target of capturing one third of new build projects in global market by 2030 remain unchanged. Nor should we forget that 80% of our revenue comes from our installed base business which is our core business.

The loss of this contract will leave a void in our 2010 operations. What major projects or initiatives are there to fill it?

Negotiations are in progress in the United Kingdom and India, among others. Moreover, the South African proposal is still in progress, and there are new opportunities in Italy. In the United States, five utilities have expressed an interest in our EPR™ reactor. Fresno Nuclear Energy Group recently joined that list. And let’s not forget that 80% of our income is from the installed base business, where the 2010 outlook is strong. Our EPR™ reactor technology has been chosen for 19 new nuclear power plants – eight in the United States, four in the United Kingdom, four in Italy, two in India and one in France – and another four are under construction in Finland, France and China. Customers are also expressing interest in our KERENA™ and ATMEA1™ reactors.

Great post from Robert at ProNuclear Democrats Blog… go read the whole thing, but here’s a snippet:

I heard the USS Carl Vinson is being sent to Port-au-Prince to supply humanitarian aid and fresh water. The desalination capabilities of the aircraft carrier was briefly mentioned but no other details given beyond that which is completely understandable. News agencies are not interested in boring their audience with technical diversions and that’s why this is a perfectly good opportunity for this blog to remind everyone the USS Carl Vinson is a nuclear powered ship and uses that power source to desalinate about 400,000 gallons of sea water a day.

USS Carl Vinson

Haiti needs more water than this on a daily basis in this emergency situation but this vital supply of fresh water would otherwise be extremely logistically difficult without a transportable desalination plant like the Carl Vinson. Additionally, the energy to process this water would be extremely voluminous if done with oil and require constant resupply – yet another logistical challenge. However, with a nuclear power source, the fuel supply is extremely compact and lasts for years, it makes the logistical problem that would exist with a fossil fuel source disappear completely. There is no other power solution that can do a better job of bringing fresh water in this situation.

A Quick Survey of What’s in the Works for AREVA’s Advanced Reactor Technologies

Today as part of an on-going dialogue with bloggers and other parties also very interested in nuclear, the AREVA North America Blog had a very informative chat with Finis Southworth, chief technology officer of AREVA’s U.S. reactor division.

Finis fielded questions on all of AREVA’s work on the development of nuclear reactors.

Below are links and informational brochures on some of the projects we discussed. Even if you were not part of the conversation, this is a great resource for the work being done at AREVA for the future of nuclear energy:

ATMEA, a joint venture by AREVA and Mitsubishi Heavy Industries, is developing a mid-sized Generation III+ pressurized water reactor (PWR) using innovative, reliable, proven technology.

Technical description of ATMEA1 (pdf)

AREVA is also developing KERENA, a mid-sized boiling water reactor (BWR) for customers that prefer BWR technology.

For high- and very high-temperature reactors, AREVA participates in research carried out in the context of the International Generation IV Forum, created in 2001. The mission of the forum is to select and develop future nuclear production systems for the target dates of 2030-2035, integrating sustainable development criteria (safety, competitiveness, optimization of resources, reduction of waste, resistance to external threats, etc.).

The International Generation IV Forum brings together nine countries: South Africa, Brazil, Canada, South Korea, the United States, France, Japan, the United Kingdom, Switzerland, and the European Union (through the CEA – the French Atomic Energy Commission).

AREVA HTR Brochure (PDF)
AREVA HTR Brochure (PDF)

Thomas Friedman wrote in a Jan. 9 op-ed on why the United States should invest and develop “Energy Technology” (ET) now. If not, America’s technology, businesses, and infrastructure could be left behind as China’s makes a “green leap forward.” Here’s what he wrote:

“We are either going to put in place a price on carbon and the right regulatory incentives to ensure that America is China’s main competitor/partner in the E.T. revolution, or we are going to gradually cede this industry to Beijing and the good jobs and energy security that would go with it…

China is also engaged in the world’s most rapid expansion of nuclear power. It is expected to build some 50 new nuclear reactors by 2020; the rest of the world combined might build 15.

EPR(tm) reactor construction in China

By the end of this decade, China will be dominating global production of the whole range of power equipment,” said Andrew Brandler, the C.E.O. of the CLP Group, Hong Kong’s largest power utility.

In the process, China is going to make clean power technologies cheaper for itself and everyone else. But even Chinese experts will tell you that it will all happen faster and more effectively if China and America work together — with the U.S. specializing in energy research and innovation, at which China is still weak, as well as in venture investing and servicing of new clean technologies, and with China specializing in mass production.”

Read the rest of the opinion piece from the New York Times here.

By Katherine Berezowskyj

Yesterday, Carol Browner, the White House energy and climate advisor, held an online chat where she discussed energy independence, a new generation of clean energy jobs, and the need for comprehensive energy legislation.

The White House posted the live footage of the chat on its blog. Browner outlines the White House’s vision for energy in the United States and explains the answers to critical questions (on items including renewable energy incentives, green jobs, energy efficiency and the market mechanisms to reduce greenhouse gases).

A Reuters’ article from yesterday picked up on a clear message from Browner during the chat:

“We have not built a nuclear plant in this country in a long time but we want to work with the industry to make that happen in the not too distant future.”

“The president believes that nuclear needs to be a part of our energy future,” Browner said. “If you believe as we do that climate change is a serious problem … then you need to be open to what are all of the ways in which we can produce energy in a clean manner.”

Governor Jan Brewer

And more news about the need for both nuclear energy and renewables, Arizona Governor Jan Brewer “wants more nuclear power for in state.” According to the Associated Press, Brewer said Tuesday that “the state should include more nuclear power plants in its energy portfolio while cutting taxes and government regulation to provide a welcome mat for solar and wind projects encountering “green tape” elsewhere.

Said Brewer, “Memo to California solar industries: Arizona’s door is open, we’ll leave the light on for you.”

Brewer outlined a portfolio of positions and initiatives on energy topics during an address to a regional business summit held at a Phoenix resort.

Arizona already is home to the three-reactor Palo Verde Nuclear Generating Station west of Phoenix, and Brewer said she wants to develop more nuclear power.

No new nuclear power plant has been built in the U.S. for decades but economic and environmental factors warrant a new emphasis on that electricity source, Brewer said.

“I believe it’s the wave of the future,” she said.”

Read the rest of the piece by Paul Davenport of the Associated Press here.

Image of U.S. EPR™

By Katherine Berezowskyj

Last week, AREVA and Fresno Nuclear Energy Group (FNEG), LLC announced that they have signed a Letter of Intent to formalize their work together in the development of a nuclear power plant project for the Fresno, California area.

This Letter of Intent means that AREVA and Fresno Nuclear Energy Group will begin cooperation on the initial development and permitting process for one or possibly two of AREVA’s U.S. EPR™ plants, beginning with the preparation of the Early Site Permit and subsequent Combined License Application to be submitted to the U.S. Nuclear Regulatory Commission.

John Hutson, President of the Fresno Nuclear Energy Group commented how “AREVA shares our commitment to carbon-free, renewable energy; like us, they believe that nuclear is only part of the solution—AREVA is a world leader in designing wind, solar, geothermal and other renewable energy systems, as well.”

The objective of the Fresno Nuclear Energy Group is to provide an environmentally responsible source of electricity especially to develop the state’s critical agricultural industry and support wildlife preservations efforts that are so vital to the Central Valley of California.

And nuclear energy isn’t just an environmentally responsible energy option; a new U.S. EPR™ would create up to 11,000 direct and indirect jobs during component manufacturing (including AREVA’s Newport News heavy component facility in Virginia) and plant construction.  On top if this, construction and operation would also create more than 400 permanent jobs and spur billion of dollars in investment in the local economy.  When the U.S. EPR™ is up and running it would produce clean, reliable baseload electricity for more than 1.6 million homes.

For more information about this historic partnership for clean energy in California check out the Fresno Nuclear Energy Group, LLC, the U.S. EPR™ by AREVA, and official Press Release.

We’re taking it a little easy over here while we enjoy the holidays, but we wanted to share this cool photo of construction on AREVA’s EPR at Flamanville, France (click to enlarge):

Hope you’re having a great holiday season!

by Mary Douglas
Reprinted from AREVA Energy Business, Issue 8

Other Carbon-Free Energies

Nuclear is only one option, albeit a key one, among AREVA’s range of carbon-free energy choices. The group is developing synergistic solutions including a range of renewable energies that make sense in a balanced energy mix.

Renewable energy use is increasing worldwide. In emerging countries they supply inexpensive electricity from local resources. In Europe and North America they help reduce greenhouse gas emissions. Europe has set an objective of a 20% share for renewable energies in final energy consumption by 2020, and AREVA has technologies capable of supporting that growth.

The group is currently offering its customers a portfolio of four renewable energies: wind power, bioenergy, concentrated solar power, as well as next-generation hydrogen carrier and storage solutions. Several of these have already reached technical maturity, such as wind power and bio energies. They can still be improved in terms of yield and distribution. For example, following its acquisition of 51% of Multibrid in 2007, AREVA has developed pioneering technology to become a leader in the emerging offshore wind power market.

In bioenergy, AREVA is no. 1 in turnkey solutions. The group has built over 100 operating bioenergy power units all over the world, totaling more than 2,800 MWe of installed capacity. AREVA is also reshaping the hydrogen industry by providing CO2-free Hydrogen production. These solutions enable hydrogen to be generated via electrolysis and electricity from fuel cells, with no greenhouse gas emissions.

AREVA is also developing concentrated solar power solutions, which will deliver more than 20% efficiency and grid parity.

Improving Efficiency of Nuclear Power Generation and Fuel Management

The cleanest energy is energy that is not used at all. AREVA is working to improve efficiency in both power generation and fuel supply. The aim is to maximize the availability of operating nuclear power plants to produce more energy with the same amount of fuel. It includes working to improve load factors at new reactors such as the state-of-the-art Generation III+ EPR™ reactor.

AREVA's Saint Alban plant in France

One advantage of this new generation of reactors is its fuel burn-up coefficient. Compared to the previous generation reactor, the EPR™ reduces uranium consumption by 15% for the same amount of electricity generated. In line with its commitment to sustainable development and environmental protection – by making energy more efficient – AREVA is also helping to conserve valuable resources by improving fuel management. Reusable uranium and plutonium are recovered from used fuel for recycling in nuclear reactors as MOX fuel (a mixture of the two materials) or as enriched reprocessed uranium (ERU). Using its advanced technologies, AREVA is therefore able to recycle 96% of the materials contained in used nuclear fuel which significantly reduces the volume and radiotoxicity of final waste to be disposed of. Through its recycling operation, under strict international safeguards, AREVA also supports non-proliferation objectives since used fuel is unloaded from a power plants it can be sent directly to recycling operations and MOX production, avoiding the accumulation and aging of used nuclear fuel at multiple reactor sites worldwide..

Waking to the Dangers

The world is finally awakening to the dangers of climate change, and as a global leader in solutions for CO2-free power generation AREVA is ready to offer its entire portfolio of energy solutions to solve the problems which will increasingly face its customers.

In July, leaders at G8 agreed to at least a 50% reduction in global greenhouse gas emissions by 2050, with developed countries achieving an 80% reduction to ensure that global average temperatures do not rise by more than 2ºC above preindustrial levels.

In October, U.S. Energy Secretary Steven Chu said Washington was “deeply committed” to finding a solution to climate change in the run-up to Copenhagen. “This is a fundamental trust we are about to break if we don’t act as aggressively as we can,” he told a meeting at the IEA in Paris. AREVA is well prepared to meet this challenge.

• AREVA Leads the Way in Tackling Climate Change, Part I
• Find the article on page 22 of AREVA Energy Business Magazine

by Jarret Adams

Vice President Joe Biden

According to a report by Vice President Joe Biden, the administration’s clean energy programs are expected to help create some 700,000 jobs. He said that the $787 billion Recovery Act is helping spur investment in new clean energy technologies, including wind, solar, energy efficiency and perhaps even nuclear energy. According to the ABC News blog:

“I’m pleased to report that the administration is laying the foundation for a clean energy economy that will create a new generation of jobs, reduce dependence on oil and enhance national security,” Biden begins his memo to Obama.

Biden notes in the memo that “Recovery Act investments in renewable generation and advanced energy manufacturing of $23 billion will likely create 253,000 jobs and leverage over $43 billion in additional investment that could support up to 469,000 more jobs, putting us on track to meet the goal of doubling our renewable energy generation, including solar, wind and geothermal, in just 3 years.”

Smart grid investments through the plan are expected to create some 43,000 jobs. AREVA T&D is participating in one of these initiatives to develop the smart grid systems.

Regarding nuclear energy, the Vice President also reports that “by the end of our first two years in office, we will have provided conditional commitments for loan guarantees for two nuclear power operators to add three to four new nuclear reactors.”

That’s great, but weren’t there four companies listed as finalists for the loan guarantees? And DOE officials have said that the first loan guarantee for a nuclear project could be issued by the end of this year.