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Released May 07, 2013 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - French energy giant, Electricite de France (EPA:EDF) (Paris), has found a new potential partner for its U.K. nuclear projects in the shape of China Guangdong Nuclear Power Corporation (CGNPC) (Shenzhen).
EDF, alongside French engineering company Areva S.A. (EPA:CEI) (Paris, France) and CGNPC have signed a "tripartite agreement" to foster what they called "deeper industrial and commercial cooperation".
The news comes a few months after EDF lost its key U.K. partner for new nuclear projects when Centrica plc (OTC:CPYYY) (Windsor, England) pulled out, blaming concerns over costs and project delays. Centrica had the option to own a 20% stake in four reactors. For additional information, see February 8, 2013, article - Centrica Abandons U.K. Nuclear Projects.
EDF has refused to confirm if CGNPC will fill the vacancy left by Centrica's departure but the possibility is now one step closer.
As part of the agreement, the three firms have reaffirmed their willingness to successfully complete the construction of the first two reactors in Taishan, and to carry out a successful start of their commercial operation. EDF and Areva will also help improve the safety, maintenance and performance of CGNPC's reactors currently in operation and aid with "the evolution of its fleet". The partners have also stated that they will "consider cooperation in future international projects".
Henri Proglio, EDF's CEO, declared: "Signing this agreement confirms the long-term relationship with CGNPC that began over 30 years ago with the construction and commercial operation of the Daya Bay and Ling Ao plants. Our shared interest, which was formalised today, is to continue with and strengthen this collaboration, which will benefit the whole nuclear sector in France."
In March, the U.K. heralded the start of a new nuclear age for the country when the Department of Energy and Climate Change (DECC ) granted planning consent to the construction of a new nuclear plant at Hinkley Point in Somerset, the first new nuclear power station in the U.K. since 1995. For additional information, see March 20, 2013, article - U.K. Heralds New Age of Nuclear Power.
However, EDF has yet to make a final investment decision on Hinkley . It remains locked in discussions with the government over the Contract for Difference (CfD) strike price for nuclear. EDF was hoping to kick-start the project at the end of last year but no agreement has been reached over how much the government will guarantee EDF for each megawatt (MW) of electricity produced over the plant's 40 years of operation.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
EDF, alongside French engineering company Areva S.A. (EPA:CEI) (Paris, France) and CGNPC have signed a "tripartite agreement" to foster what they called "deeper industrial and commercial cooperation".
The news comes a few months after EDF lost its key U.K. partner for new nuclear projects when Centrica plc (OTC:CPYYY) (Windsor, England) pulled out, blaming concerns over costs and project delays. Centrica had the option to own a 20% stake in four reactors. For additional information, see February 8, 2013, article - Centrica Abandons U.K. Nuclear Projects.
EDF has refused to confirm if CGNPC will fill the vacancy left by Centrica's departure but the possibility is now one step closer.
As part of the agreement, the three firms have reaffirmed their willingness to successfully complete the construction of the first two reactors in Taishan, and to carry out a successful start of their commercial operation. EDF and Areva will also help improve the safety, maintenance and performance of CGNPC's reactors currently in operation and aid with "the evolution of its fleet". The partners have also stated that they will "consider cooperation in future international projects".
Henri Proglio, EDF's CEO, declared: "Signing this agreement confirms the long-term relationship with CGNPC that began over 30 years ago with the construction and commercial operation of the Daya Bay and Ling Ao plants. Our shared interest, which was formalised today, is to continue with and strengthen this collaboration, which will benefit the whole nuclear sector in France."
In March, the U.K. heralded the start of a new nuclear age for the country when the Department of Energy and Climate Change (DECC ) granted planning consent to the construction of a new nuclear plant at Hinkley Point in Somerset, the first new nuclear power station in the U.K. since 1995. For additional information, see March 20, 2013, article - U.K. Heralds New Age of Nuclear Power.
However, EDF has yet to make a final investment decision on Hinkley . It remains locked in discussions with the government over the Contract for Difference (CfD) strike price for nuclear. EDF was hoping to kick-start the project at the end of last year but no agreement has been reached over how much the government will guarantee EDF for each megawatt (MW) of electricity produced over the plant's 40 years of operation.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
