nuclear-news

EDF chief weighs asset sales as Paris pushes for new nuclear focus

Insiders say Fontana’s stance signals he is aligned with the French
government unlike his predecessor. EDF’s new boss is conducting a
portfolio review that could lead to the French energy group selling some
assets, as he seeks to meet government demands to focus on building new
nuclear reactors in France.

Bernard Fontana has told insiders that he
wanted to assess which assets were not profitable or did not fit with the
state-owned group’s strategic priorities, according to several people
with knowledge of the situation. Fontana, who took over as chief executive
of the state-owned group last month, told the people that sales could come
after the review, although he has not yet concluded which parts of the
business should be sold off.

The state “has said that we have to make the
new nuclear programme in France a success, and exploit the current nuclear
centres. For the rest, if there aren’t the means, we’ll have to
arbitrate”, said one of the people.

Its other assets and subsidiaries
include the construction engineering division Framatome — of which
Fontana was previously CEO

— renewable installations in France and across
the world, Italian utility business Edison and services company Dalkia.

Several people familiar with EDF said Dalkia and Edison are among the
business units that could be sold. Renewable assets, with the exception of
EDF’s hydraulic power projects, could also be under consideration, the
people said.

Still, the company’s aims could be complicated if it tries
to sell assets during a difficult economic environment, potentially forcing
it to offload some assets at deep discounts, especially in the US where it
has a number of offshore wind and solar projects.

Asset sales would also do
little to meet the enormous costs of delivering the new EPR2 programme,
people familiar with the business said. The government and EDF recently
agreed a funding mechanism for the project, but the total cost is yet to be
determined.

Building the EPR2s and meeting EDF’s other priorities such as
guaranteeing low energy prices to consumers and industrial groups, and
completing Hinkley Point make for a “complicated economic equation
… unless someone has found a magic wand”, said one of the people.

 FT 25th June 2025
https://www.ft.com/content/e2c4ba72-b40a-4d7b-a820-70957b06958e

June 26, 2025 - Posted by Christina Macpherson | business and costs, France