FLAMANVILLE, France (Reuters) – At a sprawling nuclear website in north western France, a banner subsequent to a crane and a still-under-construction water reservoir confidently states: “Closing stretch to get Flamanville 3 began safely and securely.”
A decade delayed and billions over finances, France’s nuclear-friendly authorities, its taxpayers, and energy big EDF – which is constructing the Flamanville subsequent technology reactor – can be hoping nothing else goes flawed: the plant is anticipated to start out producing electrical energy on the finish of 2023.
“I really feel right this moment a buzz which is beginning to present on the bottom, with individuals seeing the house stretch. It’s the ultimate dash and every week we really feel this optimistic stress rising,” stated Alain Morvan, head of the Flamanville European Pressurised Reactor “EPR” mission.
“I believe it’s good for the French business and good for EDF that we end a website that has confronted issues,” he advised Reuters this week throughout a uncommon press journey to the plant.
Nestled on the backside of a granite cliff in Normandy overlooking the English channel, the Flamanville 3 EPR mission was designed to be EDF’s flagship plant – a safer, extra highly effective and long-lasting nuclear reactor that may substitute its ageing fleet and enhance French nuclear exports.
However it has develop into a byword for its failings and a humiliation for the federal government, which owns 84% of EDF and is banking on nuclear to blunt the impression of a European vitality disaster worsened by the prospect of an abrupt exit from Russian fuel.
Two weeks earlier than Russia invaded Ukraine, President Emmanuel Macron introduced a 52-billion euro ($54 billion) plan for EDF to construct no less than six new EPR reactors, inserting nuclear energy on the coronary heart of France’s drive for carbon neutrality whereas additionally boosting its vitality safety. France derived 69% of its electrical energy output from atomic energy final yr.
The Flamanville plant – which as soon as absolutely operational can be producing sufficient energy to maintain a metropolis like Paris going for a yr – was initially anticipated to value 3.3 billion euros and begin operations in 2012.
It’s now on account of begin loading gasoline – one of many last levels earlier than the beginning up of a plant – within the second quarter of 2023, and on the newest rely the estimated value had risen to 12.7 billion euros.
The delay is partly on account of defective welds within the reactor circuits and firm officers stated this week they have been moderately assured they may meet the most recent deadline.
Of the three,000 individuals presently engaged on the mission, 800 are centered on fixing the welds – round 50 out of 122 nonetheless want repairing.
“I wish to consider that we now have analysed the scenario properly sufficient to keep away from any additional surprises,” Morvan stated.
European neighbours are additionally watching. EDF is constructing a brand new EPR plant in Britain, which has additionally been hit by delays and price overruns. And France was the area’s largest internet exporter of energy final yr, supplying international locations similar to Italy and Germany.
NATIONALISATION
That EDF officers are in a position to persist with the 2023 schedule set out in January for Flamanville, is without doubt one of the few items of optimistic information from the struggling energy big in a number of months.
EDF has confronted a litany of issues this yr, prompting the federal government to contemplate a full-blown nationalisation and de-listing of the corporate to have whole management over a looming restructuring, presumably by a buyout of minority shareholders, sources have advised Reuters.
Half of its nuclear reactors in France are offline partly on account of corrosion issues, simply as vitality costs are hovering on account of inflation, provide chain snags and the fallout from sanctions towards Russia.
On prime of that, the debt-laden group has been pressured to purchase energy at document excessive costs and promote it on to its rivals for affordable, according to a cap on vitality tariffs set by the federal government to defend French customers from climbing cost-of-living bills.
EDF has already stated it expects an 18.5-billion euro hit to its core income this yr on account of manufacturing losses, on prime of one other 10.2 billion-euro loss from the vitality worth cap measures – a transfer the federal government is prone to repeat for subsequent yr.
A 3-billion euro capital enhance – principally funded by the state – was accomplished earlier this yr. This week, Finance Minister Bruno Le Maire stated all choices have been on the desk for EDF when requested a couple of full-blown nationalisation, which gave its shares a uncommon enhance.
“The overall opinion on EDF is bettering on account of a sequence of optimistic indicators and feedback from French authorities on the rising potential of a nationalisation,” stated Nicolas Bouthors of AlphaValue.
“A buyback of minorities at a big premium versus present worth is as soon as once more attracting speculative curiosity from traders after they’ve deserted the inventory on account of operational and regulatory points.”
($1 = 0.9630 euros)
Further reporting by Valentine Baldassari in Gdansk; Writing by Silvia Aloisi;Modifying by Elaine Hardcastle
