EDF-Areva, the epilogue of a French disaster – Le Point

What are the Socialists, they break up. Areva was born in June 2001, the will of the Jospin government to create a global champion of nuclear power. Under the strong leadership of Anne Lauvergeon, Topco then combines the activities of the private group Framatome, reactor manufacturer, and public group Cogema, which manufactures fuel, recycles at La Hague and is a mine field. Shortly after, Topco become Areva, a blown name to Anne Lauvergeon by his father and that references – one wonders why -. At the Royal Monastery of Arevalo in Spain

Thus was born the integrated model whose Anne Lauvergeon has made the apostle, highlighting the benefits of a group capable of providing everything from floor to ceiling. Natural uranium extracted from its mines in Niger, Kazakhstan and Canada is enriched by him, and then recycled, and also feeds the built and maintained by him reactors; in the end, the spent fuel is recycled.

EDF receives the poisoned chalice

Fifteen years later, the integrated model has disintegrated. Areva, now led by a tandem Philippe Varin Philippe Knoche, signed a memorandum of understanding to sell Areva NP, activity reactors construction and maintenance, that of the former Framatome. No longer remain in her lap as the activities of former Cogema, reducing the group’s turnover of 3.1 billion (about 8.3 in total). Incidentally Areva would pocket a check for € 2.7 billion, once the agreement approved in September. This has all the appearances of a return to square one, that which existed before Topco project.

Well not at all. For Areva NP does not fall into the hands of a private group, but EDF group could not be more public (80%), which picks up the ante, poisoned by the setbacks of the super-reactor (EPR 1600 MW), France, where technical problems (steel tank) accumulate, especially in Finland, where costs have skidded 3-8000000000 euros without one catch a glimpse the end of construction . The poison is such that EDF refuses to assume the financial risks of the EPR Olikuoto and asked the State to endorse.

Areva is virtually bankrupt. In 2014, the group lost 4.8 billion euros, more than half of its turnover! Its debt (€ 5.8 billion) exceeds the turnover of the new Areva. Everything has been said about this fiasco. Including that Lauvergeon, eager to impose the EPR, has negotiated a ridiculous price with Finland and squandered the money group in fanciful mining investment (Namibia). But one of his biggest mistakes was to want to build reactors from the expertise of EDF, although greater than that of Areva. For if realized Framatome reactors, it is the EDF engineers who were the architects. This is EDF that designed the French nuclear fleet, not Areva. One in Finland from an unlikely alliance with Siemens of Germany was – in hindsight allows to affirm – a fatal error

The Russian model

The show offered. Today the hexagonal nuclear industry is surprising. This looks like Rosatom, the Russian Atomic Energy Agency and its subsidiaries, which also, include construction and operation. Except that Rosatom is also competent for nuclear weapons. But after all, the Office of Atomic Energy, which also has military activities, is not it the majority shareholder Areva? We see, we are not so far away.

And we still closer with the absorption of Areva NP by EDF. Certainly, it is not at all expected that Areva is a subsidiary of EDF. But in reality, it’s a bit what happens because EDF is by far the main customer of Areva for fuel reprocessing and more. Post-Fukushima has reduced the prospects of nuclear power in the world (except China, became quasi-autonomous), Areva will struggle to find new customers. As for EDF, it can happen Areva.

To keep alive the French Rosatom, the state will be forced to recapitalize the former world champion as directed for nuclear long the most powerful ex-wife in the world (according to Forbes, like what everyone can be wrong). In times of budget scarcity, find 3-5000000000 euros (estimated amount of the recapitalization of Areva) is no fun. The state, master teacher at EDF and Areva, was so void as a shareholder he must now pay the bill for his negligence.

A man, only one, pulled out of the game this French disaster: Henri Proglio, the former CEO of EDF and sworn enemy Lauvergeon. He praised his services to the Russian Rosatom. True.