nuclear-news

The News That Matters about the Nuclear Industry Fukushima Chernobyl Mayak Three Mile Island Atomic Testing Radiation Isotope

Employee’s legal threat hangs over EDF’s U.K. Nuclear Project

justiceflag-franceEDF Unions Threaten to Go to Court Over U.K. Nuclear Project, Bloomberg, April 22, 2016

  • Employee representatives ask to be consulted before decision
  • Trade unions say they’ll sue if not consulted in advance
  • Electricite de France SA’s unions are threatening to take the company to court if employees are not consulted in advance on a decision concerning a proposed 18 billion-pound ($25.8 billion) U.K. atomic plant project.

    EDF’s workers committee, which includes representatives from the biggest unions, met near Paris and voted to take legal action should the company fail to consult employees on Hinkley Point, according to a statement Thursday. The project is key to EDF earnings and has prompted disagreements between management and unions, it said.

    “We ask that the workers’ committee is consulted before any decision by management or the board,” the committee said. If that didn’t happen then “the committee would be forced to take legal action to have any decision linked to the Hinkley Point project suspended or annulled.”

     The threat marks the latest attempt by workers to delay a decision, given concerns about EDF’s finances amid falling power prices across Europe. Union FO has already threatened to call for a strike. EAS, an association of EDF employees holding the company’s shares, is asking the stock market regulator to require that the French government, which owns 85 percent of EDF, repurchases shares at the initial public offering price…..http://www.bloomberg.com/news/articles/2016-04-21/edf-unions-threaten-to-go-to-court-over-u-k-nuclear-project

April 25, 2016 Posted by | employment, France, Legal | Leave a comment

French corporation EDF and its zombie nuclear reactors

AREVA EDF crumblingEdF: Living with its ZOMBIE REACTORS!, Jonathon Porritt, 24 Apr 16, 

You seriously wouldn’t want to be a Director of EdF at the moment. The agenda for an average Board Meeting must be seriously gloomy on each and every occasion. Here’s how I imagine the key agenda items for their last meeting on 16th February – helpfullysummarised by EdF’s Company Secretary.

Item 1: Existing EPR construction projects
1.1 Olkiluoto (Finland)
Continuing, horrendous cost overruns, leading to ongoing legal stand-off with Finnish partners. Already delayed by seven years, but (hopefully!) could be finished by 2018.
1.2 Flamanville (France)
Continuing, horrendous cost overruns. Already delayed by nine years, but (hopefully!) could be finished by 2018.
1.3 Taishan (China)
Serious problems with both reactors under construction, but, this being China, everything’s shrouded in secrecy. WARNING: This could be much worse than we currently understand.
1.4 Pressure vessels
Still waiting for final safety assessment from French regulators. WARNING: There could be really serious problems here, despite our best efforts to ‘work with’ the regulator.
1.5 Deadlines/UK Treasury
These deadlines are now CRITICAL – as in EXISTENTIAL.
UK Treasury’s loan guarantees are linked to Flamanville operating successfully. And if it is not working properly by 2020, loan guarantee will be completely withdrawn.

Item 2: New reactors at Hinkley Point, Somerset………

Item 3: Extending the life of our UK reactors……

Item 4: Extending the life of our French reactors…….

Item 5: Energy Transition Law (France)…….

Item 6: Financial position…….

…..The implications of all this for the UK couldn’t possibly be more severe. Initially, HinkleyPoint was meant to be on stream by 2025, generating a whacking great 7% of total electricity supply. Earlier delays meant that this had already slipped to 2030. Now that the start date has slipped again, to 2019, AT THE EARLIEST, that 2030 date looks insanely optimistic…….http://www.jonathonporritt.com/blog/edf-living-its-zombie-reactors

April 25, 2016 Posted by | business and costs, France, UK | Leave a comment

France gives €3bn bailout to EDF’s Hinkley nuclear plant

Tax - payersflag-franceFrance gives €3bn lifeline to Hinkley nuclear plant, Sunday Times, Robin Pagnamenta, Energy Editor, 24 Apr 16, A decision on the proposed nuclear power station will not be taken until after an EDF shareholders’ meeeting Erance has thrown its support behind EDF, the French electricity company, and its plan to build the £18 billion nuclear power station at Hinkley Point, Somerset, by supplying a €3 billion lifeline.

President Hollande’s administration has agreed to put in the money towards a proposed €4 billion (£3 billion) cash-raising the company is proposing by issuing new shares. EDF said last night that the confirmation of the fundraising made it possible for the company to proceed with investments including Hinkley Point C by putting it on a “solid financial footing”……http://www.thetimes.co.uk/article/union-threats-force-edf-to-delay-hinkley-decision-0zf56xjms

April 25, 2016 Posted by | France, politics | Leave a comment

EDF wants to extend depreciation period for nuclear plants this year, but nuclear watchdog may not be willing

Poster EDF menteurEDF to extend depreciation period for nuclear plants this year – CEO https://au.news.yahoo.com/world/a/31423313/edf-to-extend-depreciation-period-for-nuclear-plants-this-year-ceo/ Reuters on April 23, 2016 PARIS – French utility EDF will extend the depreciation period for its nuclear plants this year, its CEO said in a newspaper interview, an accounting move that will free up cash for costly investment projects in France and Britain.

“By the closing of our first-half results, we will draw the accounting consequences of our intention to extend the lifespan of our existing nuclear plants beyond 40 years,” EDF CEO Jean-Bernard Levy said in Saturday’s Le Figaro newspaper.

EDF had said before it intended to extend the lifespan of its French nuclear plants to 50 or 60 years, beyond the 40 years they were initially built for. Energy Minister Segolene Royal said in February that the government was willing to give the go-ahead for such a move.

But French nuclear watchdog ASN is the only authority allowed to grant such an extension, and it has said a decision on the matter would not come before 2018-2019. To make the accounting change, which would automatically boost EDF’s profits, the company must convince its auditors that there is a good chance of the extension being granted.

In 2003, EDF extended the depreciation schedule for nuclear reactors in its accounts to 40 years from 30 years – six years before the ASN agreed to the move.

The utility, 85 percent-owned by the French government, said on Friday it would seek to raise 4 billion euros ($4.5 billion), amid concerns that a 23 billion euro nuclear plant project at Hinkley Point in Britain would put a strain on its finances.

(Reporting by Michel Rose; Editing by Toby Chopra and Hugh Lawson)

April 25, 2016 Posted by | France, safety | Leave a comment

EDF plan to help finance Hinkley nuclear project could be illegal

justiceflag-EULegal challenge fuels doubt over Westcountry nuclear power station By WMNK Rossiter  http://www.plymouthherald.co.uk/Legal-challenge-fuels-doubt-Westcountry-nuclear/story-29157974-detail/story.html April 22, 2016 By Keith Rossiter A French government plan to help energy company EDF to build a nuclear power station in Somerset could be illegal, barristers have warned.

Greenpeace and green energy company Ecotricity released a legal opinion on a proposed package of financial support.

French economy minister Emmanuel Macron insisted this week that the £18 billion Hinkley Point C power station will go ahead, in spite of doubts over the viability of the project.

EDF won the contract to build Hinkley Point, but has delayed giving the final go-ahead for months. The company has still not signed off a contract with its Chinese partner China General Nuclear Power Corporation.

Mr Macron said he was “actively working” with EDF and the UK Government to draw up the “final points” of a deal for Hinkley and that it was “very important for France” that the project went ahead.

EDF declined to comment on the Greenpeace claims.

The latest speculation, fuelled by Mr Macron, is that the French government would accept dividends from EDF in the form of shares rather than cash.

The legal experts say that the capital injection this would give to EDF would constitute state aid.

“This would destroy a level playing field for European energy companies,” Greenpeace said.

John Sauven, Greenpeace UK executive director, said: “The only way Hinkley can be kept alive is on the life support machine of state aid.

“The UK Government needs to stop penalising the UK renewable energy industry in favour of propping up an ailing state-owned nuclear industry in France.

“The UK should be a haven for renewable energy investment given the massive potential for wind, solar and tidal to cost effectively meet our energy needs.”

The legal opinion from competition and EU law barristers Jon Turner QC, Ben Rayment and Julian Gregory says that the reported refinancing plans for EDF are likely to be illegal under EU law unless and until they are approved by the European Commission.

Greenpeace has written to Amber Rudd, the Energy Secretary, and George Osborne, the Chancellor, warning them not to proceed with the project unless the French state support has been notified to and approved by the Commission.

Ecotricity says State aid for Hinkley would be harmful to EDF’s competitors.

Dale Vince, Ecotricity founder, said: “It’s time for everyone to realise that we’ve reached the end of the road for Hinkley Point – it’s not going to happen.

“Illegal state aid is one thing, but there are technical problems too. EDF is yet to build one of these reactors and their first two attempts are, between them, 16 years late and billions over budget.

“Our government needs to change its stance on green energy, which powered a quarter of the country last year and could do so much more if the sector received even a fraction of the economic and political support given the nuclear industry.”

Molly Scott Cato, Green MEP for the South West, has already asked the European Commission to investigate whether a proposed rescue plan for Hinkley C was in breach of European state aid rules.

She said: “The numbers for the Hinkley deal have never stacked up and it is clear that the commercial case for this white elephant is dead.

“We now have a political battle where the stakes for both the UK and France are just too high to admit failure.”

This week Amber Rudd said that further delays or even a cancellation of Hinkley would not compromise national energy supply.

Dr Scott Cato said: “We know the lights won’t go out if there is a concerted effort to implement Plan B based on renewable energy, energy efficiency and innovative smart grid and energy storage solutions.

“This could be delivered in time to prevent blackouts and create 122,000 quality jobs – many more than nuclear could ever hope to deliver.”

April 23, 2016 Posted by | France, Legal, UK | Leave a comment

France’s nuclear corporation EDF warned on legal action over the Hinkley nuclear project debacle

text Hinkley cancelledPoster EDF menteurPressure rises on EDF board over Hinkley Point nuclear plant, FT.com, 19 Apr 16,  Michael Stothard in Paris  A group of managers at French utility EDF have sent a letter to its board of directors warning they could all face legal action if the company pushes ahead with its contentious Hinkley Point C nuclear project in the UK.

The letter, dated April 19 and seen by the Financial Times, said that if a board decision in favour of Hinkley Point led to the “destruction of the value” at EDF its directors could be held personally responsible……….

French president François Hollande is also meeting ministers at the Élysée Palace on Wednesday to discuss financing options for Hinkley Point. The French state has an 85 per cent stake in EDF.

The letter by the group of EDF managers highlights the internal battle that has raged within the company over Hinkley Point, with chief financial officer Thomas Piquemal resigning last month because of concerns that the UK project could threaten the company’s future…….

Two other nuclear projects in France and Finland using the same reactor technology proposed for Hinkley Point are both severely delayed and billions over budget…….. http://www.ft.com/intl/cms/s/0/d6d16bd0-0628-11e6-9b51-0fb5e65703ce.html#axzz46IzsG72i

April 20, 2016 Posted by | France, Legal, politics, UK | Leave a comment

EDF’s minority shareholders want French govt to be forced to buy them out.

AREVA EDF crumblingflag-franceEDF staff investors demands France buys out minorities in nuclear dispute  

Staff shareholder group says state abuses majority

* Minorities say EDF used as government policy tool

* EAS fears Hinkley Point will crimp future dividends (Adds detail on dividend, EDF no comment)

Reuters By Geert De Clercq  PARIS, April 19 An EDF employee shareholders group has asked the AMF market regulator to force the French state to buy out the utility’s minority shareholders, in a dispute over its plans to build nuclear plants in Britain.

In a letter to the AMF, seen by Reuters on Tuesday, EDF Actionnariat Salarie (EAS) asks the market regulator to consider requiring the state to launch a so-called public withdrawal bid.

EAS alleges that the government is abusing its position as a majority shareholder by forcing EDF to go ahead with building nuclear plants in Britain, which EAS says is too risky for EDF and will prevent it from paying dividends in coming years……..

HINKLEY POINT CONSEQUENCES

EAS argues that in pushing EDF’s 18 billion pound (22.8 billion euros) project to build two reactors at Hinkley Point, in Britain, the government defends the interests of the country’s nuclear industry rather than those of EDF, at the expense of its minority shareholders…….

Hinkley Point is crucial for the survival of reactor builder Areva and France’s many smaller nuclear companies, in an industry that employs about 200,000 people. With three quarters of its power generated by nuclear, France needs no more reactors, and export prospects are limited after the 2011 Fukushima disaster.

“While the state only owns 85 percent of EDF’s capital, it behaves as if it is the sole proprietor and uses the company as a lever for its industrial policy,” EAS said.

It also said the UK project will prevent EDF from paying a dividend for at least seven years……..

On Wednesday, the government will discuss EDF’s finances ahead of an EDF board meeting on Friday. Sources close to the company said the board will review financing options but will not decide on Hinkley Point. (1 euro = 0.7906 pounds) (Editing by Alexander Smith)  http://www.reuters.com/article/edf-nuclear-shareholders-idUSL5N17M5CN

April 20, 2016 Posted by | France, politics | Leave a comment

France’s nuclear corporation faces massive costs for decommissioning nuclear reactors

Nuclear reactor clean-up weighs on EDF, FT.com, 19 Apr 16,  Michael Stothard in Paris French utility faces questions about whether it has set aside enough to decommission power plants

nuke-reactor-deadIn 1997 French utility EDF started to dismantle its first nuclear power plant, a 30-year-old heavy water reactor in Brennilis, north-western France. It was expected to cost €250m.

The bill is now set to be at least half as much again, and the decommissioning is still not done. In fact, there has never been a full dismantling of a reactor in France, the only European country to get three-quarters of its electricity from nuclear power.

EDF, the operator of all 58 of France’s reactors, is preparing to build a new £18bn plant at Hinkley Point in the UK that some at the Paris-based company have warned is too dangerous given its stretched balance sheet. EDF’s other big reactor project, at Flamanville in France, is already six years behind schedule and €7.2bn over budget.

Hinkley and Flamanville have focused attention on another looming challenge for EDF: has the company set aside enough money to cover the huge cost of dismantling and cleaning up its existing nuclear power stations in France?

Unlike the UK, where the state has assumed much of the financial risk of taking apart nuclear reactors, in France it all falls on EDF, which has established a €23bn special fund for this purpose.

The €23bn — much of it invested in equities and bonds — has been set aside to cover what EDF estimates will be the €54bn cost of decommissioning the 58 reactors and safely storing their radioactive waste. This includes €23bn for dismantling the power stations, and €26bn for managing spent fuel………..

EDF faces several major investments. As well as the £18bn Hinkley Point project, EDF is involved in bailing out reactor designer Areva by buying a controlling stake in its reactor business for €2.5bn. It is also extending the life of France’s existing nuclear power stations until 2025, at a cost of €55bn.

And it is not just the decommissioning of the 58 reactors that is of concern. The estimated cost of storing radioactive waste — potentially for thousands of years — has been steadily rising………..http://www.ft.com/cms/s/0/c82ae2c4-0582-11e6-9b51-0fb5e65703ce.html#axzz46IzsG72i

April 20, 2016 Posted by | decommission reactor, France | Leave a comment

France committed to investing in Hinkley nuclear plant, even if it bankrupts EDF

Hinkley-nuclear-power-plantflag-franceFrench ‘committed’ to investing in Hinkley C nuclear plant  Plymouth Herald  April 17, 2016 By Kate Langston The French government is “completely committed” to building the Westcountry’s new nuclear power plant at Hinkley, the country’s ministers have confirmed.

In an interview with the BBC, the French economy minister Emmanuel Macron stressed the £18 billion project is “very important” to the French state, which owns 85% of energy firm EDF.He added that backers still need to finalise some “technical and industrial” aspects of the Hinkley C deal, but should be in a position to sign in a “week or more”.

The assurances from Mr Macron come less than a week after he sparked fresh fears for the Somerset-based development by announcing he had “not yet made a decision” about the investment.

They also follow the publication of a letter from the main union representing EDF workers stating the firm is “on the edge of bankruptcy”, and should not be risking billions of pounds in the UK……..

The original date for the generator to come online has been pushed back from 20203 to 2025, and the estimated cost has soared from £16 billion to between £18 and £24.5 billion…….

Mr Macron told journalists that Hinkley is “important for [France’s] commitment to nuclear energy”. “We back Hinkley Point project, it’s very important for France, it’s very important for the nuclear sector and EDF,” he said.

“Now we have to finalise the work, and especially the technical and industrial work, very closely with EDF, with the British government, to be in a situation to sign in the coming week or more.”

The EDF board was due to meet to make a final decision on its investment in Hinkley in January, but this was postponed and is now expected to take place in May.

But John Sauven, director of environmental pressure group Greenpeace which is opposed to the new plant, has accused Mr Macron of saying one thing to a UK audience “and another to the French”.

“He has made it abundantly clear in French that no decision has been made,” he told the BBC. “The reasons are clear: the costs are rising, the problems are mounting, and the opposition in France is growing.
“The alternatives are looking increasingly attractive no matter which language you speak.”……….http://www.plymouthherald.co.uk/French-committed-investing-Hinkley-C-nuclear/story-29126276-detail/story.html

April 18, 2016 Posted by | business and costs, France, politics international, UK | 1 Comment

EDF in America going for wind power, abandoning nuclear

wind-nuclear-EDF shows that wind makes better sense than nuclear,Ecologist Chris Goodall April 2016 EDF in the UK may be propelled by its disastrous nuclear ambitions, writes Chris Goodall. But across the Atlantic it’s another story: the company is the US’s biggest wind developer, and selling its power, profitably, for under 40% of the price it has been promised for Hinkley C, including federal tax credits…….

Across the Atlantic, it’s all go for renewables!

Within the same company, they do things very differently on the other side of the Atlantic; there EDF focuses wholeheartedly on wind and has no nuclear under development.

It has just proudly announced that it has become the largest wind developer in North America with a portfolio in 2015 of over 1 gigawatt of newly constructed wind farms.

If it continues at the current rate, it will be generating more electricity from wind by 2025 than would be provided by Hinkley Point C. The numbers are as follows. Hinkley will generate about 25 terawatt hours a year. EDF’s 2015 annual portfolio of new wind projects will provide about 3 terawatt hours a year at average US utilisation factors.

If it continues to develop new wind projects at the rate of 1 gigawatt a year, it will be generating well over 30 terawatt hours a year from wind by the end of 2025. 2025 is when EDF says Hinkley will be finished.

What about the capital cost of wind versus nuclear? The latest US estimates suggest a figure of about $1,700 per kilowatt of capacity. That means EDF’s projects completed in 2015 cost about $1.8bn. Over ten years, that rate of installation will mean a total cost of around $18bn or about £13bn. Wind is therefore at least 30% cheaper to construct.

And it is much cheaper to operate. The most important project it completed in 2015, the 250 MW farm at Roosevelt in New Mexico, has sold its electricity for the next 20 years to a utility for $23.39 a megawatt hour, less than 20% of the price agreed for Hinkley of £92.50/MWh.

Note that the Roosevelt price is somewhat subsidised by Federal tax credits but even without this benefit the cost of wind would be less than 40% of the price of UK nuclear. Wind saves consumers money when compared to the nuclear alternative.

It’s simple really: renewables are a better and more secure investment

EDF finances many of its US wind projects on the back of power purchase agreements with major companies such as Microsoft, Procter and Gamble and Google. They commit to buy the electricity produced at a fixed price, not the inflation adjusted figure that the UK will pay for Hinkley. The EDF press release said:

“Corporate America is increasingly turning to renewable energy to power its business operations, based both on consumer preferences and because renewable energy simply makes economic sense.”

We never hear this line from EDF in the UK.

EDF cannot guarantee the wind will blow or the sun shine. Unlike in Britain, its US business is also investing heavily in energy storage. The US company has announced 100MW of battery systems in the US because “Energy storage is an attractive, cost-effective addition to intermittent energy generation projects.” However there’s no mention of batteries on EDF’s UK web site.

For sensible reasons large international companies often pursue varied market strategies in different countries. EDF in the US has decided to back wind while the UK has gone for nuclear.

But even a quick look shows that the energy and financial returns to the US strategy seem far clearer and better for the company, and its customers, than the tactics of the UK business. http://www.theecologist.org/blogs_and_comments/commentators/2987489/edf_shows_that_wind_makes_better_sense_than_nuclear.html

 

April 15, 2016 Posted by | France, renewable, USA | Leave a comment

Luxembourg would pay France to shut down all too near nuclear power station

safety-symbol-SmLuxembourg offers France money to close nuclear plant  http://en.rfi.fr/france/20160412-luxembourg-offers-france-money-close-nuclear-plant  By RFI Luxembourg offered on Monday to chip in financing to close an ageing French nuclear power plant near its border, saying the tiny nation could be obliterated if the station malfunctioned.

During a press conference with his French counterpart Manuel Valls, Luxembourg’s Prime Minister Xavier Bettel said a problem at the Cattenom plant could “wipe the duchy off the map”.

“The Cattenom site scares us, there’s no point in hiding it,” he said of the plant that has been in operation since the mid-1980s. “Our greatest wish is that Cattenom close.”

Luxembourg “would be prepared to make a financial commitment to a project, which would have to be cross-border… at Cattenom that is not nuclear in nature.”

Valls — who was on a one-day visit to the nation of about 500,000 — said France has pledged to cut its reliance on nuclear energy from more than 75 percent to 50 percent by shutting 24 reactors by 2025.
“Message received,” he added.

   France has several ageing nuclear power plants that are unsettling its neighbours. Germany demanded last month Paris shutter its oldest station, Fessenheim, which sits near the German and Swiss borders.

Fessenheim houses two 900-megawatt reactors and has been running since 1977. Due to its age activists have long called for it to be permanently closed.

French President Francois Hollande has pledged to shut down the Fessenheim plant by the end of his five-year term in 2017.

 

April 13, 2016 Posted by | France, safety | Leave a comment

France is dangerously ill-prepared to deal with a nuclear accident – report

France is ‘not prepared for a nuclear accident’, report says http://www.thelocal.fr/20160407/france-flag-franceunprepared-for-nuclear-accident  exclamation-, according to a worrying new report, that the Swiss and Germans will want to read with interest.

That’s the conclusion of a new report by France’s ANCCLI commission that reports on the state of the country’s nuclear facilities.

“France is not ready to face a serious nuclear accident,” warned the commission’s president Jean-Claude Delalonde. “Even though a national response plan was made public in February 2014, nothing has been put in place,” he said.

The report comes after both Switzerland and Germany have expressed concerns about the safety of some of France’s 19 nuclear power stations, with authorities in Geneva even launching legal action.

According to Delalonde’s association the French government has not learned the lessons from previous disasters like Chernobyl that was presented as a “Soviet” accident.

The Fukushima disaster in Japan prompted the French to improve certain safety measures around nuclear reactors but ANCCLI want more.

They want the “emergency zone” around nuclear power stations, where measures are put in place in the event of accident, extended from the current 10km radius to 80 km.

The fact this hasn’t been done already creates a dangerous situation for Europe, the report says.

For example France distributes iodine tablets, which protect against the potentially cancer-causing effects of radioactivity, to those living within the 10km radius of a nuclear reactor, but in Belgium the same measure is taken within a 20km radius.

After Fukushima, the radius was extended to between 20km and 50km in Switzerland. The entire state of Luxembourg is part of an emergency zone even though there are no nuclear power stations on its territory. It’s due to the fact the Cattenom reactor in France is close to the border.

The duchy has previously forwarded to the European Commission a study commissioned by Germany’s Greens party, which according to Luxembourg “listed the Cattenom plant’s security problems”.

ANCCLI wants French authorities to work out a plan and carryout “digital simulations” for how Iodine tablets would be distributed to the whole of France before a radioactive cloud passes and also how the population would be evacuated in the event of a disaster.

The extent of the problems France would face in the event of a disaster are made clear by the fact more than 1.25 million people live within 30km of the Bugey power plant near Switzerland and over one million live around the Fessenheim power station – the oldest in the country.

Delalonde points out that India’s contingency plans are far more developed than they are in France.

“They anticipate the amount of food that will be needed, the number of emergency beds needed, blankets and even how many saris would be needed,” he said.”This power plant is very old, too old to still be in operation,” said a spokesman for Germany’s Environment and Nuclear Safety Minister Barbara Hendricks.

Meanwhile, the Swiss canton of Geneva on Wednesday filed a complaint against French nuclear plant Bugey located in the neighbouring French region of Ain, claiming that it “deliberately puts in danger the life of others and pollutes the waters”.

 

April 8, 2016 Posted by | France, safety | Leave a comment

France suggests UK’s Hinkley Point nuclear project could still be postponed

text Hinkley cancelledflag-franceHinkley Point nuclear project could still be postponed http://www.theweek.co.uk/60778/hinkley-point-nuclear-project-could-still-be-postponed

Delaying £18bn development is ‘up for discussion’, says France’s Segolene Royal  Plans to build the world’s most expensive nuclear power station at Hinkley Point, near Somerset, could hit further delays, a French government official has hinted. Speaking during a radio interview this week, ecology minister Segolene Royal was asked whether the £18bn project, which is two-thirds funded by French state-backed energy giant EDF, would be postponed. She responded by stating simply that it is “still under discussion”, says The Guardian.

“There’s an agreement between France and Britain so things should go ahead. But the trade unions are right to ask for the stakes to be re-examined,” Royal said.

In particular, there should be “further proof” that the venture would not affect investment in renewable energy, she added.

Last week, the Financial Times reported that a group of senior engineers at EDF had circulated a white paper among executives calling for a delay of at least two years to overcome deficiencies in design and the “very low” competency of fellow state-owned reactor supplier, Areva. Board member and employee director Christian Taxil has also publicly called for the plans to be postponed.

Supporters for the deal include the British government, which has staked its reputation on Hinkley Point as the core part of its carbon-light energy strategy for future decades, and French economy minister Emmanuel Macron, who has said it will almost certainly get approval at an EDF investor meeting next month.

The incentives for the company are long-term and come in the form of an energy price guarantee that is almost three times current wholesale prices. A new agreement also offers £20bn protection against a future UK government pulling the plug.

The FT reports that 100 EDF engineers also responded to their colleagues concerns by issuing an open letter stating that the company can “build and deliver the two Hinkley Point reactors on time”.

 EDF’s relationship with Areva is indirectly one of the main reasons for the high profile divisions over Hinkley Point. EDF is being compelled to invest tens of billions of euros to bail out its partner and upgrade France’s nuclear power fleet but is already labouring under its own €37bn (£26bn) debt pile.

April 8, 2016 Posted by | France, politics, UK | Leave a comment

EDF senior engineers call for delay in UK Hinkley nuclear power development

text Hinkley cancelledDissenting EDF engineers urge delay to Hinkley nuclear project Complexity makes completion date unrealistic, argues report, but French group sticks to timetable Ft.com  : By Michael Stothard in Paris, 29 Mar 16, 

Senior engineers at French utility EDF have called for at least a two year delay at the controversial Hinkley Point nuclear project in the UK and recommended a redesign of the reactor technology.

An internal white paper written by dissenting EDF engineers, which has been seen by the Financial Times, argues that Hinkley Point is so complex and untested that the company should announce a later completion date than the target of 2025.

The paper, circulated among top executives, said that the “realistic service date was 2027” due to the size of the project, continuing design modifications to the European Pressurised Reactor system and the “very low” competency of French supplier Areva in making some of the large components……..

The unsigned white paper was written after Mr Piquemal’s resignation by a group of senior engineers and other dissidents, according to people with knowledge of the document. The company plans to make the final investment decision on the project at a board meeting on May 11……..

The paper also addresses wider fears that the Hinkley project will in any case not be completed by 2025 and might suffer years of construction delays.

One person on the EDF board who had read the white paper said: “Few believe that we can build this [Hinkley Point] by 2025 any more.”…….

Three people close to the company said that CGN, EDF’s Chinese partner for Hinkley, also feared possible delays, attempting to insert a clause so it would take on a lower financial risk if there were a large problem.

In the case of a £5bn cost overrun, despite EDF having a 66.5 per cent stake in the project, EDF would be liable for 80 per cent of the additional costs, according to a document sent by the EDF finance department to the board’s audit committee in January…….https://next.ft.com/content/2ef61abe-f5b1-11e5-96db-fc683b5e52db

March 30, 2016 Posted by | business and costs, France, UK | Leave a comment

Years more delay for EDF’s Flamanville nuclear power station

EDF’s French nuclear plant faces years of further delay, Ft.com 20 Mar 16 Kiran Stacey and Tom Burgis EDF’s new nuclear power station in France faces years of further delays if tests confirm that the steel used in its reactor is flawed, the country’s atomic watchdog has warned.

It is one of the clearest signals to date of the scale of the setback faced by the French utility. The flagship plant at Flamanville in Normandy has already been subject to years of delays and cost overruns, which have made it difficult for EDF to fund the identically designed £18bn reactor at Hinkley Point in the UK — a key element in Britain’s energy strategy.

Initially, Flamanville was expected to cost €3.3bn and start operations in 2012 — it is now planned to start in 2018 at a cost of €10.5bn.

But Julien Collet, the deputy director of France’s Nuclear Safety Authority, has said that it could be delayed further by several years, depending on the results of tests started last year and due to end this summer on the steel being used in the reactor core.

Flamanville 15

If the steel fails the tests, regulators could order EDF to rip out and replace the top and bottom of the reactor vessel. Mr Collet told the Financial Times: “It takes a lot of time to build new components like this — we’re talking years.”……

The concerns over the steel used in the Flamanville plant are only the latest in a string of misfortunes at that project and another in Finland, both of which use Areva’s European Pressurised Reactor, or EPR, model.

These delays have caused difficulties for EDF’s contentious new project at Hinkley Point in Somerset, which was originally planned for 2017 but is now set to be built by 2025…….

EDF was thrown a lifeline last week, however, when Emmanuel Macron, the French economy minister said his government would recapitalise the company if necessary.

But executives will come under scrutiny on Wednesday when they are grilled in Westminster about Hinkley Point by MPs on the cross-party energy select committee. http://www.ft.com/intl/cms/s/0/73d62552-ec65-11e5-bb79-2303682345c8.html#axzz43g9nsyxB

March 23, 2016 Posted by | business and costs, France | Leave a comment