Stock Groups

Macron bets on nuclear in carbon-neutrality push, announces new reactors -Breaking

[ad_1]

© Reuters. French President Emmanuel Macron gives a speech in Belfort (Fr) at the main GE Steam Power System production site. Here he revealed plans for new nuclear reactors to be built in the country under its energy strategy.

Richard Lough, Benjamin Mallet

PARIS (Reuters – France is planning to construct at least six nuclear reactors during the coming decades, President Emmanuel Macron stated on Thursday. He placed nuclear power at center of France’s effort for carbon neutrality in 2050.

Macron claimed that new power plants would be constructed and managed by EDF, the French state-controlled energy company (PA:), and that public funding of several billions of Euros would be available to help finance and secure EDF’s financial health.

Macron declared that France needs the “rebirth” of France’s nuclear sector, and stated this in Belfort, an eastern industrial city.

Promising to accelerate the development of solar and offshore wind power Macron also said he wanted to extend the lifespan of older nuclear plants in the world’s most nuclear-intensive country to more than 50 years from more than 40 years currently for certain reactors, provided it was safe.

EDF is in difficult financial times and this announcement will help to ease the burden. EDF faces delays, budget over-runs, and problems with corrosion in older reactors.

France has now committed to nuclear power. This is a key component of its postwar industrial capabilities, but its future was unclear after Macron’s promise to lower the country’s dependence on nuclear energy.

Macron’s thinking has been reshaped by the European Union’s ambitious goals for carbon neutrality within three decades, which put renewed focus on energy forms that emit fewer, or zero, greenhouse gases than fossil fuels, including nuclear.

French officials are also convinced that the region needs more energy independence because of rising energy costs and worries about Europe’s dependence upon imported Russian gas.

EDF has estimated that six reactors would cost approximately 50 billion euro ($57.36 million), depending upon financing conditions.

Macron announced that by 2035 the first new reactor (an evolution of EPR) would go online. He said that studies for eight additional reactors would also be conducted beyond the half dozen new plants.

France plans to double its solar power output by 2050, reaching more than 100 gigawatts (GW), and will build 50 offshore wind farms that have a combined capacity at least 40 GW.

ENERGY UTURN

Macron’s decision that existing plants will live longer marked an end to the pledge by EDF to shut down more than 12 of its 56 reactors before 2035.

Europe still has a fractured nuclear safety after the Fukushima catastrophe in Japan.

“Some countries made the difficult choice to abandon nuclear energy. Macron claimed that France did not make this decision.

Association negaWatt, a green energy group accused Macron of “deepening France’s dependence” on nuclear.

France has lobbied for nuclear to become sustainable in the new European Commission guidelines on green financing.

The new EU taxonomy rules will be approved and it will reduce the costs of funding nuclear energy projects.

Macron claimed that EDF’s financial security would be taken over by the state. This suggests that government capital might be available to the 84% state-owned company.

Macron declared that the state will take on its financial and financing responsibilities for EDF,”

EDF’s EPR nuclear reactors have had a difficult history. EPR projects at Flamanville (France) and Hinkley Point (Britain) are years behind schedule, billions of dollars over budget, and EPR reactors have experienced technical difficulties in China and Finland.

EDF has also reduced its forecast output for its nuclear fleet from 361 to 295 TWh to 295-315TWh. This is partly due to prolonged reactor shutdowns caused by corrosion issues in many reactors. It would drop below 300 TWh if it did.

Compounding EDF’s difficulties, Macron, who faces a re-election battle in two months and is striving to head off public anger over rising energy bills, has ordered the utility to sell more cheap power to rivals – a move that is will knock about 8 billion euros off EDF’s 2022 core earnings.

EDF shares are down 18% in 2022.

EDF has confirmed that it is buying a French-based nuclear turbine unit. General Electric (NYSE:), as the utility seeks to consolidate nuclear activities considered strategic.

($1 = 0.8717 euros)

[ad_2]