France has decided to rescue its Areva nuclear energy company once again, this time by combining the nuclear power station creation business with state-controlled power operator EDF, its biggest client, reports Forbes.
Only a few years back, in 2010, Areva’s finances had been restored by the forced sale of its transport and transmission activities to industrial group Alstom and electrical engineer Schneider. Meanwhile, GE of the United States controls the Alstom power activities as part of its own rescue recapitalisation.
The rest of Areva includes uranium mines, nuclear waste recycling, transport, storage and some alternative energy activities.
For all intents and purposes, Areva is dead. It was created in 2001 by throwing together various nuclear energy related state assets, as a sort of desperate leap forwards to provide cash-generating activities to the loss-making nuclear power station building activities.
Now, EDF and Areva will have a month to finalise a deal. EDF is likely to pay for the assets, but the state will also have to dip in for a capital increase, which means that France will pay twice for ending what was once a great dream – partly via its electricity consumers and partly by the tax payer.
Nuclear was a key competence of France and a major building block of its energy strategy. France has to import its oil and gas, it has closed its coal mines and is uneasy about entering into shale energy. It has big water reservoirs, sea tide turbines and is expanding its park of wind turbines, but that does not come close to compensating its energy appetite.