NPCIL, Areva sign pact for uranium supply

The Nuclear Power Corporation of India Limited (NPCIL) and the French company Areva have signed an agreement for supply of 300 tonnes of uranium to the fuel-starved nuclear plants of India which are virtually running at 45 per cent of their capacity.

With this accord, Areva has become the first private company to get the nod, after the approval by the Nuclear Suppliers Group easing restrictions on nuclear commerce with India.

Areva will supply uranium to nuclear reactors which will be under International Atomic Energy Agency safeguards. The contract comes as a follow-up of the nuclear cooperation agreement India signed with France when Prime Minister Manmohan Singh visited Paris in September.

India has so far signed civil nuclear cooperation agreements with the U.S., Russia and France.

NPCIL sources said they were approached by several companies, including from Kazakhstan and Canada, for uranium sale but such supplies could begin only after a few procedures such as ratification of the agreements in France and Russia were completed.

Reacting to the agreement with Areva, Minister of State for Power Jairam Ramesh said that with fuel supply resuming once again, it was expected that by June 2009, the country could generate nuclear power at at least 90 per cent of the plants’ capacity. The generation was likely to go up to around 4,100 Mwe from 1,800-1,900 Mwe now.

India plans to add at least 19 nuclear reactors with a total capacity of nearly 16,000 MWe in the 11th Plan period. Of these, eight would be indigenous Pressurised Heavy Water Reactors of 700 MWe each, 10 imported Light Water Reactors of 1,000 MWe each and an Advanced Heavy Water Reactor of 300 MWe.

(Source: The Hindu)

Three nuclear power projects moving forward with Areva’s design

Three nuclear power projects that would use Areva’s latest reactor design are moving forward this week to seek federal loan guarantees that could help them secure financing.

One other proposed reactor that would use Areva’s design, a UniStar Nuclear Energy project in New York, temporarily has been dropped from that process, due to stiff competition.

The second part of applications for the guarantee program is due Friday.

The Department of Energy’s loan guarantee program is designed to help companies get lower-cost financing to develop energy projects. If a plant covered by a loan guarantee were to default, the federal government would pay the lender.

Lynchburg has a significant interest in the outcome. Already one of the region’s largest employers, Areva is in the process of hiring 500 people to finish the detailed designs of its Evolutionary Power Reactor (EPR) and get several built in the U.S.

This year Congress allowed DOE to issue up to $18.5 billion of guarantees for new nuclear plant construction.

UniStar submitted two Part I applications for the guarantees, for a site in southern Maryland and a site in New York. Both proposed projects would use Areva’s EPR design.

Two other companies submitted Part I applications and named the EPR as their choice: AmerenUE in Missouri and PPL in Pennsylvania.

Those four applications had a lot of competition. DOE received Part I applications for a total of $122 billion in guarantees to support 21 new nuclear reactors. The department reviewed the Part I applications and gave a priority ranking to each project.

According to Bethany Shively, spokeswoman for DOE, the rankings were intended to help companies decide whether to submit Part II applications, which have a $600,000 filing fee.

The rankings were not made public.

Maureen Brown, spokeswoman for UniStar, said Monday that the company plans to submit a Part II application for its proposed reactor in Maryland. However, UniStar is delaying the submittal of a Part II application for the upstate New York site because “the program is significantly oversubscribed,” she said.

Because there is such a high demand for the loan guarantees, “We would hope that Congress would see the need to allocate additional loan guarantee funding for this program, and (we) would move forward with the (New York) approval process at that time.”

Spokesmen for AmerenUE and PPL confirmed this week that their companies intend to submit Part II site for their proposed EPRs.

Susan Hess, spokeswoman for Areva in Lynchburg, said Areva would not comment on UniStar’s decision to postpone the loan guarantee application for the New York site.

(Source: News Advance)

Areva inks pact with NPCIL to supply 300 tonnes of uranium

French energy firm Areva, the world’s largest nuclear power company, has signed an agreement with government-run monopoly Nuclear Power Corporation of India (NPCIL) to supply about 300 tonnes of uranium annually. This is the first major nuclear fuel supply agreement by the Indian firm after the approval of the Indo-US civil nuclear deal early this year.

The fuel is enough to generate about 1,500 mw power, which is over 35% of the country’s installed nuclear power generation capacity.

Minister of state for power and commerce Jairam Ramesh confirmed the move. “Availability of fuel will help NPCIL’s existing plants to start operating at full capacity from June 2009,” he said. NPCIL plants are running at 45% plant load factor (PLF) due to fuel shortage. NPCIL operates 17 nuclear reactors at six locations with a total generation capacity of 4,120 mw.

India’s estimated uranium reserves are sufficient to generate only 10,000 mw. The quality of the domestic uranium ore is also low (0.1% uranium content against global standards of 12-14%). Uranium mining in India is insignificant and in most parts of the country is resisted by locals on health grounds, leaving little scope for stepping up production.

The fuel supply agreement with Areva also ends India’s nuclear isolation from the Nuclear Suppliers’ Group (NSG). So far, the country was dependent on domestically sourced uranium and some fuel from Russia.

Apart from the fuel supply agreement, Areva is also interested in supplying 1,700 mw nuclear reactors to NPCIL. These would be the largest reactors to be used in the country.

NPCIL is also getting 1,000 mw reactors from Russia for its 4,000 mw nuclear power plant at Koodankulam. “The first in the series of four 1,000 mw Russian reactors would be put up by September 2009,” Mr Ramesh said.

Besides France and Russia, the department of atomic energy (DAE), the nodal agency for coordinating nuclear power generation activities in the country, is negotiating with non- NSG countries such as Namibia and Niger to access their huge uranium resources.

Nigeria has around 10% of world’s uranium reserves. Shortage of uranium has already forced NPCIL to delay commissioning of two 220 mw units at Rajasthan Atomic Power Station.

It also forced the government to downsize additional nuclear power generation capacity to 3,880 mw in the 11th Plan (2007-12). NPCIL wants to add over 10,000 mw capacity in the 12th five-year Plan to cover for shortages in the existing plan.

(Source: The Economic Times, India)

Eskom's nuclear plan hit by crises

Plans by South African utility Eskom to invest heavily in new nuclear generating capacity look uncertain. Political turmoil within the ruling African National Congress (ANC) and doubts about the utility's ability to secure international funding for the program have fuelled concerns that the country's energy woes are far from resolution.

In early 2007, Eskom's board approved a plan to boost electricity output to 80 GWe by 2025. This included the construction of 20 GWe of new nuclear capacity, which would see nuclear's contribution grow to 25% from the present 5%. The plan for the nuclear new-build program would kick-start with up to 4 GWe of pressurised water reactor (PWR) capacity, to be constructed from about 2010 with commissioning in 2016. Five sites in the Cape Province were under consideration, although the most likely initial site would be that of Koeberg, where South Africa's only nuclear power plant of some 1900 MWe has been in operation for the past 22 years.

Following the ANC decision that President Thabo Mbeki should step down on 21 September, a further eleven cabinet ministers and three deputy ministers have also resigned. Whilst the resignation of Mbeki had very little impact on market sentiment, bad planning and a lack of public information saw the business sector and the market react unfavourably to the announcement of the resignation of long-standing finance minister Trevor Manuel. Other high profile resignations included Deputy President Phumzile Mlambo-Ngcuka, minister of science and technology Mosibudi Mangena, and public enterprise minister Alec Erwin.

Mbeki resigned after accusations that he interfered in the prosecution of ANC president Jacob Zuma on corruption charges. The ANC - which is rupturing on what is commonly believed to be tribal differences of long-standing between the Zulu supporters of Zuma and those supporters of the original Xhosa leadership of Mandela and now Mbeki - has chosen ANC deputy president Kgalema Motlanthe as South Africa's President until next year's general election.

The resignations of Mbeki and the government ministers have raised investor concerns over political stability in South Africa. Zuma has pledged that the ANC would ensure a smooth transition and economic policy continuation. However, process so far has only raised question of whether this is possible. The political turmoil comes at exactly the time Eskom indicated, after the last decision was postponed, that it would make its announcement on the preferred supplier of its nuclear new build - or 'Nuclear 1' plans. Eskom initially indicated it would make public its decision during the first half of 2008, but this was postponed until September. The company is now saying there will be a 'decision before the end of the year'.

Eskom has shortlisted Areva's EPR and Westinghouse's AP1000 reactors for Nuclear-1. Areva heads up the EPR Consortium which includes South African engineering group Aveng, French construction group Bouygues and Electricité de France (EdF), which has submitted a bid to supply two EPR units of 1650 MWe. Toshiba's Westinghouse is matching this with a bid of three 1134 MWe AP1000 units. The Westinghouse-led N-Powerment consortium includes the Shaw Group and the South African engineering and construction firm Murray & Roberts.

Areva and Westinghouse have also offered to build the full 20 GWe - with a further ten large EPR units or 17 AP1000 units by 2025. This would be coupled with wider assistance for the local nuclear industry, in Westinghouse's case including development of the Pebble Bed Modular Reactor (Westinghouse is an investor in the PBMR company).

The question though on industry watchers' minds is whether Eskom, in the current climate, has the muscle or influence any longer to fund a nuclear expansion program. The utility has been downgraded by credit rating agency Moody's, with further downgrades also possible from Standard & Poor's and Fitch Ratings.

The current global economic crisis may also make foreign funding hard to come by. The country's National Treasury has committed to a mere 60 billion rand ($7 billion) over the next three years, leaving a very significant shortfall to reach Eskom's 343 billion rand ($42 billion) expansion plans.

(Source: World Nuclear News)

Reliance Power Plans Atomic Plants After Rules Change

Reliance Power Ltd., the energy company controlled by billionaire Anil Ambani, is in talks with General Electric Co. and Areva SA to build nuclear plants after India changes rules to allow companies to invest in atomic energy.

The utility plans to build nuclear stations at two sites, Chief Executive Officer Jayarama Chalasani said by telephone in Mumbai. Reliance Power is also in talks with Toshiba Corp.'s Westinghouse Electric Co. and Russia's Rosatom Corp., he said.

India may end a government monopoly on nuclear power generation after winning the backing of a 45-nation suppliers group this month to trade in atomic fuel and technology. Reliance joins state-run Nuclear Power Corp., GVK Power and Infrastructure Ltd. and GMR Energy Ltd., which said last week they are in talks with overseas companies to set up atomic plants.

``Private sector presence in India's nuclear business has a long way to go,'' said Girish Solanki, an analyst at Angel Broking Ltd. in Mumbai ``Entering the business may be a positive for Reliance and other private sector companies but it's too early to talk about the impact.'' He has a ``neutral'' rating on the stock.

Reliance Power shares climbed 3.7 rupees, or 2.4 percent, to 160.65 rupees at the close in Mumbai trading. The stock earlier today dropped 17.2 percent to the lowest since July 23, according to data compiled by Bloomberg. India's 30-share, benchmark Sensitive Index declined 0.1 percent.

Private Companies

The government may unveil a policy to allow private companies access to the nuclear market after national elections due by May, Rajendra Pachauri, an adviser to Prime Minister Manmohan Singh on climate change, said Sept. 12. Pachauri also chairs a United Nations panel of climate scientists who shared the 2007 Nobel Peace Prize with Al Gore.

The setting up of nuclear projects may be opened up to include private and other state-run companies, India's Planning Commission has said. The effect of allowing private companies may become visible after 2011, the panel said.

India, the world's second-fastest growing major economy, won a waiver of a ban on trade from the Nuclear Suppliers Group on Sept. 6 as part of a U.S.-backed deal. The South Asian nation plans to add 40,000 megawatts of nuclear power capacity by 2020, a third of the current total output, to beat shortages of as much as 17 percent during peak hours.

The NSG endorsement may give France's Areva and Russia's Rosatom a head start on Indian orders because U.S. companies need congressional approval to participate in supplying technology and fuel. U.S. President George W. Bush has submitted the agreement with India to Congress for final approval, seeking to win ratification before it adjourns on Sept. 26.

`Small Team'

Nuclear Power plans to start talks with General Electric and Areva this month while waiting for Congress to clear the deal, Chairman Shreyans Kumar Jain said Sept. 8. The state monopoly, which may buy $14 billion of equipment in 2009, operates 17 reactors that produce 4,120 megawatts of electricity.

Mumbai-based Reliance Power has hired 10 people, some of them former employees of Nuclear Power, Chalasani said.

``We've been preparing for the last two years,'' Chalasani said yesterday. ``There is a small team in place that is studying the market.'' As many as 200 people may be hired to manage its planned nuclear power business, he said.

Reliance Power wants land to be assigned for nuclear projects. The government should decide where the new plants should be located after conducting studies, Chalasani said.

Generation Capacity

The company, which raised $3 billion in India's biggest share sale, plans to spend $28 billion on building 28,200 megawatts of coal-fired and water-based electricity generation capacity in the next five years. Reliance currently generates 941 megawatts.

The generator may build 3,000 megawatts of nuclear capacity, according to Chalasani. The cost to build one megawatt of nuclear power may be as much as 80 million rupees and isn't included in the spending plans already announced, he said.

The utility is currently building two so-called ultra-mega power projects at Sasan in central India and Krishnapatnam in the south. Each coal-fired plant will be capable of generating 4,000 megawatts.

The company ``has a lot on its plate in terms of implementation,'' Angel Broking's Solanki said.

(Source: Bloomberg)

Westinghouse, Areva eye India nuclear plants-paper

India's Nuclear Power Corp has tentatively picked four suppliers, including U.S.-based Westinghouse Electric and France's Areva, for planned new projects, the Hindu Business Line reported on Monday.

Citing unidentified government sources, the newspaper said General Electric-Hitachi and Russia's atomic energy agency Rosatom had also been qualified by India's monopoly nuclear power generator for placement of orders.

The United States on Thursday proposed to waive restrictions on critical nuclear trade with India in a draft circulated among member nations of the Nuclear Suppliers Group (NSG).

The draft would lift a 34-year embargo on nuclear trade with India and would be discussed by the 45-nation NSG next week in Vienna.

If trade with global players open up, India hopes to double its target to 40,000 megawatts of nuclear capacity by 2020, the newspaper said.

India has 17 nuclear power plants with a capacity of 4,120 megawatts, while six units of 3,160 MW are under construction.

State-owned Nuclear Power Corp has identified four coastal sites to build nuclear park or reactor clusters housing up to eight reactors of 1,000 megawatts each, the newspaper said.

(Source: Reuters)

Canada May Abandon Nuclear Agency If It Loses Bid, Globe Says

The Canadian government is preparing to end support for Atomic Energy of Canada Ltd. if it loses a bid to build two nuclear reactors in Ontario, the Globe and Mail reported, citing unidentified people.

If the government-owned nuclear power developer loses the multibillion-dollar contract to either Areva SA of France or U.S.-based Westinghouse Electric Co., the federal government will blame the province of Ontario for the demise of the nuclear agency, the newspaper said today.

The result of the competition for the Ontario contract will be a critical factor in the federal government's decision on whether to sell the company or provide it with more funds to be globally competitive, the Globe said.

(Source: Bloomberg)

Chinese Company Wants to Build Belarusian Nuclear Power Plant

China's Guangdong Nuclear Power Group has expressed its intention to participate in the construction of Belarus's first-ever nuclear power plant, Belarusian Deputy Energy Minster Mikhail Mikhadzyuk told reporters in Minsk on Monday [11 August].

"China has 20 years of experience in the construction and maintenance of nuclear power plants, and that is why we will consider this proposal of the Chinese side for possible cooperation in the development of a nuclear power industry in Belarus," Mikhadzyuk said.

He said that cooperation could have various forms, such as supplies of equipment and services. China also could provide loans to fund the project, he said.

The Belarusian government sent an invitation to submit bids to three companies, including Russia's Atomstroyeksport, the French- German Areva Group and US-Japanese Westinghouse Toshiba. The former two accepted the invitation, while the latter reportedly never replied by the deadline, 1 August, according to earlier reports.

The deputy minister said that Westinghouse Toshiba had replied, saying that Belarus should first sign an intergovernmental agreement with the United States on the peaceful use of nuclear power. "At the same time, they said that it would take a few years to conclude such an agreement," he said.

Rosatom that controls Atomstroiexport confirmed its readiness to build the plant under a turnkey contract and "study issues concerning the provision of funds for this project," Mikhadzyuk said.

Mikhadzyuk said that the Belarusian government was examining all proposals.

Talks with Areva were postponed to a later date, Belarusian officials said last week.

Belarus plans to start the construction of the nuclear power plant in 2009. The government is considering three possible locations for the plant: near the village of Kukshynava between Horki and Shklow, Mahilyow region; in the Astravets district, Hrodna region; and near the village of Chyrvonaya Palyana near Bykhaw, Mahilyow region.

The 2,000-MW plant is supposed to supply some 15 percent of the country's electricity needs. One of the two 1,000-MW reactors is to be put into operation in 2016 and the other one in 2018.

(Source: RedOrbit)

Areva: no need to repeat MOX trials

Areva has refuted claims that its MOX nuclear fuel assemblies failed in-core tests essential to the US program to use the fuel, which would be made in part from dismantled nuclear weapons.

A recent statement from Friends of the Earth and the Union of Concerned Scientists contended that the in-core test had been a failure which would derail the program to use MOX fuel while being carried out again. An Areva spokesman today said "there's no reason to expect the test would have to be repeated."

Plutonium oxide recovered from 'surplus' nuclear weapons can be combined with uranium oxide as mixed oxide (MOX) nuclear fuel for use in commercial light-water reactors. The US Department of Energy (DoE) has 34 tonnes of plutonium it wishes to use in this way and is constructing a dedicated $4.8 billion plant to manufacture MOX fuel at Savannah River.

A necessary step before MOX fuel assemblies can be used in the USA is a long-term in-core test. France's Areva supplied four MOX 'lead test assemblies' for the trial, carried out at the first reactor of Duke Energy's Catawba nuclear power station. The ultimate plan would be to use 20-40% MOX fuel loads in the four reactors at Catawba and McGuire from around 2010.

This plan was cast into doubt on 4 August by a statement from Friends of the Earth and the Union of Concerned Scientists, which they said was based on a report from Duke Energy detailing the results of the second inspection of the MOX assemblies.

The activists' statement said that the fuel had become excessively elongated and now posed a safety hazard. Furthermore, the apparent failure of the fuel would necessitate Areva re-designing the assemblies and a complete repeat of the in-core test. This, they said, would put the MOX program back by at least eight years - and therefore it should be scrapped. The integrity of fuel assemblies is important in nuclear safety, as the metal alloys that contain the highly-radioactive used fuel constitute the second barrier between the dangerous material and the environment. The first barrier is the insoluble ceramic structure of the fuel pellets, while further barriers come from power plant structures and systems - including a reinforced concrete containment.

Areva today refuted the claims. Spokesman Jarret Adams told World Nuclear News that the assemblies completed their test run after their second 18-month operating cycle. At that point, an inspection revealed that they had "extremely slight" growth beyond an acceptance limit, defined separately from safety limits. Fuel assemblies for a pressurized water reactor like Catawba 1 are typically around four metres long and feature springs to accommodate the thermal expansion of around 15mm expected during their lifetimes in the reactor core.

It had been planned to use the assemblies once again for a third operating cycle to gain more data, and Adams said Duke was still considering this.

Delays to the program could be costly for the DoE, but the initiative is seen as too advanced to cancel. The 34 tonnes of 'surplus' former weapons material is to be destroyed according to an agreement with Russia which will see equivalent amounts in both countries used for power generation. In total, some 400 billion kWh of electricity could be generated by the materials.

Work has already started on the Savannah River MOX plant, which Areva is constructing with Shaw, and it could begin operation from 2016. It was originally agreed that Russia would also build a MOX fuel plant, but officials would now prefer to use the plutonium in starter fuel for fast breeder reactors instead.

(Source: World Nuclear News)

EDF May Sell U.K. Nuclear Sites to Win British Energy

Electricite de France SA, the world's largest owner of nuclear power stations, may sell U.K. atomic sites to gain approval for the purchase of British Energy Group Plc, two people with knowledge of the talks said.

The British government will ensure Paris-based EDF allows fair competition among developers of reactors after buying the U.K.'s largest nuclear plant owner, according to the people, speaking yesterday, who declined to be identified because the negotiations are private. Francois Molho, a spokesman for Electricite de France in Paris, declined to comment.

The French utility is close to an accord to buy British Energy, including the British government's 35.7 percent stake, for about 12.5 billion pounds ($24.8 billion), three people said this week. Gaining control of the East Kilbride, Scotland-based, company, which operates eight U.K. atomic plants, would give EDF most of the sites on which new ones can be built amid a British nuclear revival.

``There is no guarantee that EDF will have exclusive use of the sites,'' said Florence Roche, a fixed-income credit analyst at Societe Generale SA in Paris. Without that exclusivity, it makes the deal even more expensive, she said yesterday. ``At the level of valuation reported by press, the assets are not very attractive.''

U.K. Energy Minister Malcolm Wicks said in a Bloomberg Television interview on April 17 that Britain is wary of a monopoly company or business group having control of all new nuclear power stations in Britain. The government, which is reviving nuclear power to replace older plants due to shut down, is identifying suitable sites for new reactors.

Nuclear Report

A report produced for the government by Jackson Consulting recommended that any new capacity should be developed first at one of the country's existing nuclear sites. Those are owned by British Energy and the U.K. Nuclear Decommissioning Authority, an agency set up to run and clean up older plants.

Those locations already have much of the infrastructure required and grid connections, and local communities may be more likely to have the required skill base.

EDF recently bought land adjacent to the Wylfa power station, owned by the Nuclear Decommissioning Authority, as a backup plan in case it misses out on British Energy. The French power producer has said it wants to build as many as five nuclear reactors in the U.K.

Centrica Role

British Energy in November signed an agreement with the national grid operator to connect six new nuclear reactors on four southern England sites to the country's power transmission network from 2016.

Centrica Plc may acquire about 25 percent of British Energy as part of the transaction, the people said. The takeover may be discussed by Electricite de France directors at a board meeting today, they added.

EDF said today it will hold a press conference in Paris at 8:45 a.m. local time tomorrow. Francois Molho, a spokesman for the company, declined to comment on the reason for the previously-unscheduled event. EDF also releases earnings tomorrow.

The proposed price EDF may offer is about 775 pence a share, two of the people said this week. That's 8 percent above yesterday's close of 720 pence and 27 percent more than March 14, the trading session before British Energy said it may receive an offer. On July 29 Dow Jones reported EDF would offer 765 pence a share for the government's stake, citing a person familiar with discussions on the deal.

Contingent Value

The Financial Times reported today that part of the EDF bid will be in the form of contingent value rights, securities which have future payouts dependent on the performance of British Energy after it has been taken over. It said these securities are less well-known to U.K. investors than to those in the U.S. and continental Europe, and may complicate negotiations.

The Financial Times said EDF's proposed bid includes an all-cash alternative, which would be at a lower level than the potential value of the option of cash plus CVRs.

EDF rose 1.59 euros, or 2.9 percent, to 55.88 euros at 12:55 p.m. in Paris trading. British Energy fell 3.5 pence, or 0.5 percent, to 716.5 pence in London.

Prime Minister Gordon Brown said on June 22 in Jeddah, Saudi Arabia, that he backs new atomic plants to meet demand. Brown favors nuclear power because it emits less carbon dioxide, the gas blamed for global warming, than gas and coal-fed stations.

New Plants

Among the first in line to acquire potential reactor sites in the U.K. may be GDF Suez SA, the world's second-largest utility by market capitalization.

Chief Executive Officer Gerard Mestrallet has said the Paris-based company wants to own and operate ``third- generation'' reactors in western Europe and would be interested in developing generators in Britain.

Suez SA, which combined with Gaz de France SA on July 22, has held talks with British Energy on possible sites for new atomic plants, Mestrallet has said. Suez announced May 23 it had ended talks on a possible bid for British Energy to focus on completing the long-planned merger with Gaz de France.

GDF Suez and Electricite de France are backing the European Pressurized Reactor design developed by Areva SA for new generators.

(Source: Bloomberg)

Bharat Heavy to Triple Nuclear Investments After Pact

Bharat Heavy Electricals Ltd., India's biggest power-equipment maker, plans to triple spending in nuclear components once overseas companies are allowed to supply technology and fuel under an agreement led by the U.S.

``If the nuclear deal comes through we are quite confident there will be a lot of orders in this area and we don't want to be left out,'' Chairman and Managing Director K. Ravi Kumar said in an interview at his office in New Delhi, where the company is based. ``We will invest depending on the volume.''

Bharat Heavy rose the most in five months in Mumbai on optimism the government's victory in a confidence vote last night will lead to the lifting of a ban on overseas supplies of nuclear technology. Areva SA, the world's biggest maker of reactors, and General Electric Co. may win orders when the accord between India and the U.S. is sealed, Nuclear Power Corp. of India has said.

``The orders could be divided and companies such as Areva, Siemens AG and ABB Ltd. will be involved,'' said Taina Erajuuri at Glitnir Asset Management in Helsinki, which manages $158 million in Indian assets, including Bharat Heavy. ``The government may prefer some local companies as well, like Bharat Heavy and Larsen & Toubro Ltd.''

Shares of state-controlled Bharat Heavy surged 11 percent to 1,773.35 rupees at close of trading in Mumbai. Larsen, India's biggest engineering company, rose 7.8 percent to 2,772.9 rupees.

Investment Plans

Bharat Heavy plans to spend 15 billion rupees ($351 million) in two years building plants to supply components for reactors of 1,600 megawatts capacity, Kumar said yesterday. Without the accord, Bharat Heavy will invest 5 billion rupees to build steam turbine generators and other components for 700 megawatt plants designed in India, he said.

The accord with the U.S. can generate more than $10 billion of orders for Indian companies, including Bharat Heavy and Larsen & Toubro Ltd., by 2012 if the planned projects are awarded, UBS AG analysts Suhas Harinarayanan and Pankaj Sharma wrote in a note to clients on July 10.

``We estimate Bharat Heavy's business potential at about 25- 30 percent of the contract size for the turbine generator sets and electrical equipment,'' the analysts said. They have a ``neutral'' rating on Bharat Heavy stock.

Joint Venture

Bharat Heavy will set up a 50-50 venture with state-run Nuclear Power Corp. that will supply components for nuclear plants with a capacity to generate 700 megawatts, 1,000 megawatts and 1,600 megawatts of power, Kumar said. The company will also seek overseas partners to provide technology for these plants, he said, declining to name the companies.

The company aims to expand its nuclear power-plant business because of wider profit margins, Kumar said. The gross profit margins for such plants would be as much as 30 percent, compared with about 22 percent for thermal power plants, Kumar said.

Bharat Heavy has provided 80 percent of the equipment used by Nuclear Power Corp.'s installed capacity of 4,120 megawatts. In April, Bharat Heavy agreed to set up a venture to make nuclear plants that will seek technology to make steam turbine generators of 700 megawatts or more.

Areva, GE

Areva, General Electric, Toshiba Corp.'s Westinghouse Electric Co. and Russia's atomic energy agency Rosatom are among four manufacturers of reactors that would share $14 billion of orders from India when the U.S. agreement is signed, Nuclear Power Corp. said in August.

NTPC Ltd., the nation's biggest utility, rose 5.5 rupees, or 3 percent, to 190.45 rupees. Reliance Infrastructure Ltd. surged 10.6 percent to 1,016.7 rupees. Areva T&D India Ltd., a unit of Areva, gained 79.05 rupees, or 4.9 percent, to 1,686.45 rupees.

The agreement will allow India to generate as much as 40,000 megawatts of nuclear power by 2020, sufficient to light up four cities the size of New York, from 4,120 megawatts now. Electricity demand in Asia's third-biggest economy during peak hours widened to 17 percent in the last fisal year from 14 percent a year ago.

Singh was forced to seek a vote of confidence in the nation's lower house of parliament after his former communist allies withdrew support over the accord with the U.S. The Left parties have said the nuclear agreement will weaken India's ability to pursue an independent foreign policy.

Fuel Imports

The accord will allow India to import technology and fuel without joining the 1970 Nuclear Non-Proliferation Treaty. India last week presented a nuclear inspections agreement to the United Nations' International Atomic Energy Agency, which needs to approve the plan before the government in New Delhi can push forward with expansion of power production.

The IAEA's board will vote Aug. 1 in an extraordinary meeting on whether to endorse the plan, which will give inspectors access to 14 civilian atomic reactors. The inspections agreement is a key condition for a U.S.-Indian nuclear cooperation treaty.

Nuclear suppliers have been barred from providing India with atomic technologies since it tested a nuclear weapon in 1974 without being listed as an atomic weapons state in the Nuclear Non-Proliferation Treaty.

(Source: Bloomberg)

France orders tests on all nuclear power stations after leak

Fears over France's nuclear reactors have been raised as the government orders ground water tests at its 58 power stations, after a uranium leak at one polluted local water supplies.

The safety lapse at a plant in Provence run by French nuclear giant Areva has raised questions over President Nicolas Sarkozy's drive to roll out reactors around the world – in Britain but also in states with less stringent safety norms.

"I don't want people to feel that we are hiding anything from them," said ecology minister Jean-Louis Borloo as he announced the blanket tests.

Residents in Bollène in the Vaucluse, southern France – a top tourist area – have been told not to drink water or eat fish from nearby rivers, after 74kg of liquid uranium was spilled on July 7 at the Tricastin nuclear plant.

Swimming and water sports were also banned along with irrigating crops with the contaminated water, which reached two rivers.

French authorities last week ordered the closure of a nuclear treatment facility at the plant, which also has a nuclear reactor, after liquid was spilled during its transfer from one container to another.

The site is run by Socatri, a subsidiary of Areva, whose president, Anne Lauvergeon, is due to visit.

Areva aims to dominate the design and construction of at least eight new power stations which are to be fast-tracked in England over the next decade.

According to Gordon Brown, they are essential to reduce Britain's dependency on fossil fuels, but environmentalists have already raised safety fears, saying the Areva reactor design is 'untried and untested'.

Ben Ayliffe, head of nuclear campaigns at Greenpeace, said: "Such unpredictable and nasty side effects are the risks you take with nuclear.

"We believe the leak in France resulted from human error.

"Liquid uranium was accidentally poured onto the ground. We're not talking about dishwater here. This is a dangerous radioactive material.

"The risk of accidents like this in the UK should be enough to make reasonable people baulk at the thought of having more nuclear power stations here."

Although ranked as only a level-one incident on a scale from zero to seven, Mr Borloo said he wanted government nuclear safety inspectors to look into the environmental conditions at all sites, in particular the state of the surrounding ground water.

"I'm told that everything is under control, but I want to be sure," Mr Borloo told Le Parisien newspaper.

French environmental group Sortir du nucléaire welcomed the move, but said that tests should be carried out by an independent body not linked to the industry or the French state – its main shareholder.

France has the world's second largest network of nuclear reactors after the United States and they generate more than 80 per cent of its electricity.

While the spill at Tricastin did not affect the reactor, Mr Borloo stressed that "there is no room for negligence" in nuclear energy.

France's IRSN nuclear safety institute said it had located four areas with abnormally high levels of uranium in the ground water and that this could not have been caused by the Tricastin leak alone.

This has led to suggestions that military nuclear waste buried nearby in an underground storage site from 1964 to 1976 may be to blame.

In 1998, a study by French nuclear body Cogema estimated that up to 900kg of uranium had leaked into underground water supplies from the site, and that another 1,700 kilogrammes were still buried there.

However, IRSN said the pollution "incident" had "nothing to do with this mound of waste" – located roughly a mile further south.

It has been declared all vegetables and crops irrigated just after the leak fit for consumption, but residents around Bollène, where the power station is located, said they feared for their health.

"We've been drinking water from this water table for 20 years," said Sylvie Eymard, who cultivates herbs and vegetables on a farm within sight of Tricastin's cooling towers. Most of her plants have died due to the water restrictions.

"We've done chemical tests before, but never thought of a radiological risk.

"I can't help thinking about the possible consequences of this pollution on my children", she told Le Parisien.

The municipality is supplying tanks of drinking water and local stores have sold out on mineral water, while some residents have stocked up on iodine pills – usually taken as protection against airborne radioactive particles.

"The local population is worried and no longer believes official figures", said André-Yves Becq, the deputy mayor. He said Socatri inspectors "suspiciously" told one family that dangerously high levels of contamination in its water supply were due to a "dirty measurement instrument".

France is fiercely proud of its nuclear prowess thanks to mainly state-owned energy giants Areva, Electricité de France and newly merged GDF Suez. The country has already embarked on the construction of a new generation of higher-yield EPR reactors.

In April, Mr Sarkozy hailed French nuclear technology as "one of the safest in the world' while on a trip to Tunisia – the latest in his nuclear sales tour of mainly Muslim states including Algeria, Libya, Morocco and Saudi Arabia, but also China.

"Without energy, you will not know growth. Without growth, you will not have development. You will have poverty, under-development and unemployment, and thus terrorism. Everything is linked", he claimed.

(Source: Telegraph.co.uk)

France to build second Areva EPR nuclear power plant - Sarkozy

President Nicolas Sarkozy, confirming a report in Les Echos, said France will build a second EPR European pressurised water nuclear power reactor.

Sarkozy, who made the announcement on a visit to ArcelorMittal's factory at Le Creusot, gave no indication of where the plant will be built, not when it will start output.

The first of Areva's 1,600 megawatt third-generation reactors to be ordered in France is under construction for EDF at Flamanville.

The president, Areva CEO Anne Lauvergeon and ArcelorMittal CFO Aditya Mittal signed an agreement for a 70 million euro investment aimed at increasing production at the Industeel plant, the nuclear energy company said.

The investment, which will be staggered between 2008 and 2010, will increase ingot production capacity significantly from 35,000 tonnes to 50,000 tonnes per year, it said.

Dieter Furniere of Dexia said it is unclear who will be picked as the operator of the reactor, since EDF does not see the necessity to construct new nuclear capacity before 2020.

In a note to clients, the Dexia analyst mentioned Suez and Poweo as among companies which might be interested in the additional nuclear capacity.

The first commercial EPR plant on which construction began, at Olkiluoto in Finland, is two years behind schedule.

In November, Areva received an order to supply EPRs to China in a contract worth 8 billion euros including fuel, the biggest contract in civilian nuclear engineering.

France has 58 nuclear reactors of earlier models and produces 80 percent of the country's electricity from them.

(Source: Forbes)

Jordan's first nuclear plant looms amid deals with Western powers

Jordan's first nuclear plant is looming in sight as it inked a preliminary nuclear cooperation deal with Britain on Sunday, the third one in a month with Western nuclear powers on pumping nuclear energy.

Under the latest deal, Britain and Jordan will jointly promote "the establishment of a reliable source of nuclear fuel for future civilian light water nuclear reactors" in the Arab kingdom, said Chairman of Jordan Atomic Energy Commission Khalid Touqan.

The deal with Britain came a day after a memorandum of understanding (MoU) with Canada's Atomic Energy of Canada Limited (AECL) and SNC-Lavalin International, one of the world's largest engineering and construction firms.

According to Touqan, the MoU with Canada aims to help Jordan assess the feasibility of the introduction of a Canada Deuterium Uranium (CANDU) nuclear power program.

It includes engineering and economic studies on a possible Enhanced CANDU 6 reactor, along with assessment on infrastructure development, site selection, fuel fabrication facilities, technology transfer, manpower training and the potential use of Jordan's uranium resources in the program, Touqan added.

Jordan also reached a nuclear collaboration agreement with France in late May, under which France would provide assistance for the Arab country in mining and extracting nuclear material as well as training Jordanian nuclear personnel.

In exchange, French energy services company Areva was given the chance to extract the uranium deposits from Jordan's 1.2 billion tons of phosphate reserves and build a nuclear reactor.

News came out on June 16 that a feasibility study for the creation of Jordan's first uranium manufacturing facility is underway. The study is due to be completed in seven months.

According to Jordan Phosphate Mines Company (JPMC) Chairman and CEO Walid Kurdi, the study will identify the best technologies of uranium extraction from phosphoric acid, set the engineering designs of the facility and determine the total capital and operational cost.

Jordan also borrows expertise from the United States through an MoU signed last September, which says that the two sides will work together to develop specifications and requirements for an appropriate power reactor, including fuel service arrangements, personnel training, nuclear safety and energy technology.

In addition, the Arab kingdom pumps technical assistance from the European Union (EU) on establishing legislative and regulatory framework to promote highest standards of nuclear safety.

This is covered in a "Joint Declaration on Priorities for Energy Cooperation," which was inked at the end of last October on the sidelines of a conference on energy security in the Egyptian resort of Sharm el-Sheikh.

Unlike its oil-rich neighbors, Jordan imports 95 percent of its energy needs and has an annual water deficit of more than 500 million cubic meters, official estimates showed.

Jordan's King Abdullah announced a civil nuclear energy program in January 2007, saying the country was seeking an alternative energy to generate electricity and desalinate seawater.

Under the strategy, a nuclear plant will be set up by 2015 and nuclear power is expected to make up 30 percent of its energy production by 2030.

Jordan's nuclear ambition has received support from the International Atomic Energy Agency (IAEA).

IAEA Director General Mohamed ElBaradei promised during a regional tour in April 2007 that the UN nuclear watchdog was ready to help Jordan to benefit from nuclear energy for peaceful purposes, while Abdullah pledged that the kingdom "will seek to acquire nuclear energy in line with international standards and laws related to the use of nuclear energy."

It is estimated that Jordan can extract 80,000 tons of uranium from its uranic ores and that the country's phosphate reserves also contains some 100,000 tons of uranium, officials with Jordan's energy ministry revealed.

(Source: Chinaview.cn)

Brazil: AREVA Awarded Service Contracts for Angra 1 and 2 Nuclear Power Plants

AREVA (Paris:CEI) was awarded six contracts totaling over 45 million euros by Brazilian utility Eletronuclear, to carry out extensive service works on the Angra 1 and 2 nuclear power plants.

With a duration period of three to five years, the scope of the contracts mainly covers works on Angra 2 and comprises key service needs for a nuclear reactor in operation.

AREVA will carry out examination and maintenance operations on the reactors’ mechanical and electrical main components and will provide local support to meet its customer’s needs.

In the framework of these orders, AREVA will implement its proven integrated service concept not only during plant outage but also during operation. AREVA’s comprehensive offer will lower operating costs for Eletronuclear while enhancing the reliability of its plants.

These new successes will further strengthen the cooperation between the two companies in Brazil.

The group already provides services for both Angra plants and, together with Eletronuclear, has been performing the yearly outages for Angra 2 since its connection to the grid in 2001.

(Source: Business Wire)

Total In Talks With Areva, Suez On Nuclear Power

French oil giant Total SA (TOT) confirmed Monday it's in talks with two other major French energy groups over possible projects in the nuclear energy sector.
Total has a stated objective to expand into the nuclear energy sector.
At a seminar for journalists, Philippe Boisseau, Total's director general for gas and new energies, said the company is looking to join up in the nuclear sector with the big French state-owned nuclear engineering group Areva (CEI.FR) and utilities group Suez (SZE.FR), without providing details of specific projects they may cooperate on.
Total is positioning itself in the nuclear market via its competence in managing large projects, Boisseau said.
It also has the capacity to assume long-term capital intensive projects, he added. He also cited the company's history of relations and partnerships with energy producing countries.
Boisseau noted that the nuclear industry will be required to make substantial investments in the next 30 years as most nuclear installations will need to be replaced.
Chief Executive Christophe de Margerie said later at the seminar that it's much too early to talk of Total becoming an operator of nuclear plants.
Outlining future investments, he said the company will spend $1 billion on reasearch and development is 2008, up 20% from 2007. It will spend $1.8 billion on exploration.
In France alone, around 75% of electricity is produced by nuclear power plants. The company is also looking to partner with Suez and Electricite de France (1024251.FR) in solar energy.

(Source: http://www.easybourse.com/)

French power myths

France may export massive amounts of nuclear power, but that success doesn't come without its difficulties

In his rebuttal to Lawrence Solomon's May 13 column on France's nuclear power system, French ambassador Daniel Jouanneau made a number of highly misleading claims (letter, May 16). These assertions are especially relevant in light of France's recent entry into Ontario's potential multi-billion market, in which Franco-German Areva NP, the world's largest nuclear vendor, is competing against Japanese-owned Westinghouse Electric Co. and Atomic Energy of Canada Ltd.

Working in France on nuclear issues for 25 years, four of them as a direct advisor to the Environment Minister's Office, I am familiar with the French nuclear establishment. The Ontario government should thoroughly scrutinize both the French nuclear program in general and, in particular, the ongoing difficulties of Areva NP in meeting quality-control standards, deadlines and budget terms at its current building sites in Finland and France.

The ambassador's general claims conveniently confuse electricity and energy. While nuclear energy provides 78% of France's electricity, this corresponds to only 18% of the total energy that consumers use. In other words, France's nuclear program does not come close to "ensuring its energy independence." Oil meets almost half, and fossil fuels over 70%, of France's final energy needs, as is the case in many other countries. Moreover, all of France's uranium is imported.

"Since 1970, 50% of France's CO2 emissions have been avoided thanks to nuclear energy." That statement by the French ambassador is flatly wrong. France's carbon dioxide emissions in 2006 were some 13% lower than in 1970, but even higher than by the middle of the 1980s.

"Efficiently meeting the power needs of its population"? Let's rather say, the government-owned electricity utility -- Electricite de France (EDF) -- deploys massive efforts to encourage ever more electricity use, in particular in the form of highly inefficient space heat. Picture this: To generate electricity, you heat water and lose between half (a modern gas plant) and two-thirds (a nuclear plant) of the energy in the transformation process, plus an additional 7% to 10% in the grid before the electricity heats air in the home. A modern natural gas or oil-based central heating system loses less than 10% of the energy in the form of waste heat.

"Environmentally responsible"? The Hague plutonium factories emit thousands of times the amount of radioactivity of a French nuclear power plant and cause a collective dose to the world population comparable with those that resulted from the major accidents in 1957 at Kyshtym in Russia or Windscale in the U. K.

France's nuclear energy policy is anything but "innovative." The best example is the nuclear establishment's total inability to adapt to the failure of the plutonium-fuelled fast-breeder program. Having squandered tens of billions of dollars on the plutonium economy, it now sits on two giant plutonium factories at The Hague, despite having lost nearly all of its foreign commercial reprocessing clients. Yet Areva continues to boast that one gram of plutonium is "equivalent" to one ton of oil. It is amazing that such an apparently valuable resource gets a zero value in the accounts of EDF, owner of a stunning 50-ton plutonium stockpile -- at US$100 per barrel of oil, the plutonium should be worth more than US$30-billion! Even more amazing, the Dutch pay EDF to rid them of their plutonium separated at The Hague. Usually, one sells a valuable resource.

(read more)
(Source: National Post)

Areva May Participate in Power Plant Construction in Romania

A new nuclear power plant being planned by the Romanian government in Transylvania, central Romania will have Areva, the French constructor of nuclear power plants, participating in the project, reported Romanian news agency Rompres, citing Power Engineering International's online story as its original source.

It is reported that the government is contemplating on commissioning the project by 2020 and may base the 1,200MW plant near the Mures, Somes, or Olt Rivers.

The new plant, which is being built in the country following the steep rise in oil and gas prices globally, will reportedly use new technology unlike the existing nuclear power plant at Cernavoda that uses Canadian Candu reactor.

"Romania needs a second plant as energy demand is permanently on the rise and fossil energy will be replaced," Philippe Garderet, scientific director of Areva, was quoted as saying by the publication.

(Source: RedOrbit)

Idaho Selected By AREVA For $2 Billion Uranium Enrichment Plant

The French-based AREVA company has notified Idaho’s Senator Larry Craig, Governor Butch Otter, Senator Mike Crapo and Congressman Mike Simpson that it has selected Bonneville County, Idaho, as the site of its $2 billion first U.S. uranium enrichment plant.

“AREVA has the technology and the experience, and eastern Idaho has the workforce, the infrastructure, the commitment to advancing nuclear technology and the critical understanding of this industry. It’s a great match that will result in secure jobs and a stronger economy,” Governor Otter said. “This highlights the Idaho National Laboratory’s importance to our entire state, and it shows what a great investment it was to provide state funding for the Center for Advanced Energy Studies at the INL. We now have public and private resources, industry and academics working together to bring about this new opportunity. I’m grateful to the people of Bonneville County and to all those who helped make this announcement possible.”

“This is phenomenal news for Idaho’s energy economy – for jobs and prestige – and for attracting more clean energy initiatives to Idaho, and I was honored to hear personally from Madame Lauvergeon, AREVA’s CEO, of her decision to site AREVA’s first U.S. uranium enrichment plant in Bonneville County,” Senator Craig said. “Last June, when AREVA first expressed an interest in Idaho and asked for my help in finding a suitable site, my staff began a concerted effort to utilize all of Idaho’s resources to not just meet AREVA’s technical requirements, but also to demonstrate our unprecedented experience and business support for clean nuclear power . Working with the Governor’s Office and key State Legislators, we were able to find the right location and create the right business environment for what will be the largest commercial energy project in Idaho’s history.”

“AREVA is a natural fit for Idaho because both are world leaders in nuclear research and technology.” Senator Crapo said. “Today’s announcement is a credit to the Idaho National Laboratory personnel whose proven record of hard work, dedication and skill opened the door to landing this facility. Educating the world about the expertise, opportunities and business-friendly atmosphere we have in Idaho is also a big part of this announcement and I credit Grow Idaho Falls for its strong efforts leading to AREVA’s selection of Idaho. Clean energy like nuclear power is essential as a part of our nation's energy portfolio. AREVA’s record of safety in France is further evidence of this safe, clean energy source that we need to add to our energy options.”

“In a weakening economy, we should openly welcome this investment of $2 billion in our state’s economy and the creation of hundreds of very good jobs,” said Congressman Simpson. “There is a strong, and growing, domestic and international market for the fuel AREVA will create in Idaho which means these jobs will be a stable addition to our economy for decades. AREVA is a good company, with a strong safety record, and a long history of doing similar work in France – one of the most environmentally conscious countries on earth. Put simply, this is outstanding news and I am grateful to the strong group of Idahoans who have worked so hard to make this project a reality.”

AREVA is one of the leading global suppliers of enriched uranium for use in commercial nuclear reactors. The enrichment plant that will be built in Bonneville County will be the same design as AREVA’s George Besse II enrichment plant that is currently under construction in France, and the same as the Urenco LES enrichment plant currently under construction in eastern New Mexico. AREVA’s U.S. enrichment plant will employ more than 250 full-time staff to process natural uranium for use in domestic commercial nuclear power plants. During the plant construction phase, which will last for several years, more than 1,000 workers will be employed.

The company will now begin licensing the plant through the Nuclear Regulatory Commission (NRC) so that plant construction can begin by 2011. AREVA plans to have the plant operational by 2014.

Craig credited passage of the 2005 Energy Policy Act (EPACT) with leading a revival in nuclear power, and he said the construction of domestic uranium enrichment capability will ensure a supply of fuel for the current U.S. reactor fleet and hopefully many new reactors in the future.

In addition to Idaho, four other States were under consideration for the AREVA plant: Washington, Ohio, Texas and New Mexico.

(Source: http://www.allamericanpatriots.com/)

Areva plans to build $2 billion uranium plant in Idaho

French-owned energy services company Areva NC Inc. will build a $2 billion uranium enrichment plant near the eastern Idaho city of Idaho Falls, after winning tax concessions from the state Legislature.
The plant will be built near the Idaho National Laboratory, where scientists have done research into nuclear energy since the 1940s, the company said Tuesday.
A late-session push in the Legislature earlier this year extended a sales tax exemption for production equipment that handles nuclear fuel and capped property tax valuations at the proposed plant at $400 million.
Areva plans to build the plant by 2014. A program in which Russia has been converting weapons-grade uranium to uranium suitable for use in electricity-producing reactors and selling it to an Areva rival expires in 2013.
"The United States needs more clean energy to support its economic growth," Michael McMurphy, Areva NC's president and chief executive officer, said in a statement. "To enable us to meet those needs we have to expand our domestic nuclear infrastructure, secure our supply of enrichment services, and reduce our reliance on foreign imports. This new enrichment plant is a critical part of this process."
Before the plant is built, Areva still must get approval from local, state and national agencies, including a license from the Nuclear Regulatory Commission to construct and operate the facility.
Areva selected Idaho over sites in Washington state, Ohio, Texas and New Mexico.
"While we had several attractive sites to choose from, we opted for Idaho Falls, which has strong ties to nuclear energy, and which welcomed Areva and its proposed enrichment facility to become a new member of its community," McMurphy said.
Areva NC, headquartered in Bethesda, Md., is a subsidiary of France's Areva Group. Areva also is building a similar, larger uranium enrichment plant in France.
The federal Nuclear Regulatory Commission took applications to build seven new commercial U.S. nuclear reactors last year, with 25 more licensing requests expected through 2009. As interest in nuclear power grows, there are two other uranium enrichment plants being built in the United States, one in southeastern New Mexico and another in Piketon, Ohio.

(Source: Seattle Times)