74 EnErgyBiz January/February 2009

»dePArTMenTnAMe»InTroduCInG

france’s areva has developed a busIness

plan that envisions building one-third of the new nuclear reactors in the United States. To better understand the aspirations of the European nuclear giant, energyBiz submitted a dozen questions to Jacques Besnainou, president of Areva Inc., the group’s North American subsidiary. His written responses follow.

EnErgyBiz What new policies are needed in the United States to foster development of nuclear power in the country? BEsnAinou The government loan guarantee program is critical for fostering the development of new U.S. nuclear plants, especially in the current economic climate. Areva supports the continuation and expansion of the loan guarantee program so that energy companies can secure credit under the best possible terms.

Certainly, the licensing activities of the Nuclear Regulatory Commission are also important as the agency reviews applications for new plants as well as design certification. The government should ensure that the NRC has adequate funding so that it can carry out its reviews in a timely manner.

EnErgyBiz France is more reliant on nuclear power than any other major industrial country. What policies have been most important in helping France achieve this milestone? BEsnAinou The sustained commitment to a con-sistent energy policy by successive governments, regardless of party, has been a major factor in the success of France’s nuclear energy program. This has supported the development of France’s nuclear industry and its fleet of reactors over a 20-year period – an impressive achievement. Today, thanks to the large contribution of nuclear power, France has one of the lowest carbon emissions per capita of any developed country. Its electricity costs also are very low compared to other European countries.

EnErgyBiz What mistakes has France made in its nuclear policies that the United States should avoid? BEsnAinou There was little public debate during the original development of nuclear power plants in the 1970s. As a result, some in France faulted the industry for a lack of transparency with the general public. Today, we consider transparency as a motto for our company.

EnErgyBiz Why is the question of disposal of nuclear wastes in France less of an intractable

The french solutionareva Points the way to exPanded nUClear oPerations

An InteRVIew wItH JACques BesnAInOu

By martin rosenBerg

jacques besnainou Photo courtesy of Areva

»dePArTMenTnAMe

www.energycentral.com EnErgyBiz 75

»InTroduCInGpolitical issue than it is in the United States? BEsnAinou First and foremost, the industry in France has a long history of managing used nuclear fuel in a safe and environmentally friendly manner. This record, along with a tradition of openness with the general public, has enabled us to establish a level of trust regarding our management of used fuel. Government policies have helped. In 2005, France held a yearlong national public debate on used fuel management and considered a wide range of views as it formulated its policies.

EnErgyBiz What are the main reasons that Areva has run into delays and cost escala-tions building a new reactor in Finland? BEsnAinou Whenever you undertake a first-of-a-kind project such as the evolutionary power reactor – the EPR model – adjust-ments to the construction schedule are normal. Moreover, the original schedule was an aggressive one. Moreover, the EPR in Finland is the first Generation III+ reactor under construction in the world. We consider this reactor a showpiece in terms of new technology and the valuable experience we are gaining. We are already putting our experience toward other projects in France and China. When the time comes, we will use that knowledge in new U.S. EPRs.

EnErgyBiz How could such problems be avoided in future nuclear projects? BEsnAinou We believe the experience we are gaining in Finland, as well as in France and China, will help us as we move on to new projects, especially those in the United States. This experience will give us an edge on our competitors as we move to other new projects.

EnErgyBiz How many nuclear power plants would Areva like to be involved in constructing in the United States in the next decade? BEsnAinou Our goal is to build one-third of the new reactors in the United States. At present, seven U.S. EPRs are under consid-eration by energy companies, and license applications for four of these have been submitted to the NRC.

EnErgyBiz Areva is marketing its reactor through a venture between Electricité de France and Constellation Energy called

Unistar. How will those efforts be affected by the recent financial upheavals at Constellation? BEsnAinou We’re confident that the EPR technol-ogy stands on its own merit, and we will continue to pursue the deployment of a fleet of reactors to meet America’s growing energy demands. At this point, we do not have any reason to believe that MidAmerican’s purchase of Constellation will have any effect on the progress toward construction of the U.S. EPRs.

Since the proposed acquisition, Constellation

areva[worldwide]

headquarters

paris

employees

72,000

revenue [2007]

12 billion or $15 billion

operations

all aspects of the nuclear fuel cycle, electricity transmission and distribution and renewables

total nuclear plants built or under construction

100

areva north america

headquarters

bethesda, md.

employees

6,000

revenue [ 2007]

$2 billion

operations

development of new nuclear projects, reactor services, fuel cycle activities, t&d and renewables

projects under development

7 evolutionary power reactors, the eagle rock enrichment facility (Idaho), the moX fuel fabrication facility (s.c.) and areva newport news (va.)

76 EnErgyBiz January/February 2009

»dePArTMenTnAMe»InTroduCInGhas submitted a license application to the NRC to build an EPR at Nine Mile Point in upstate New York. Additionally, Unistar Nuclear awarded a contract, in the hundreds of millions of dollars, to Areva and Bechtel to complete the detailed design and engineering of the U.S. EPR.

EnErgyBiz Areva and Northrop Grumman plan to invest $363.4 million to build nuclear-reactor vessels, steam generators and other heavy equip-ment at Northrop’s Newport News, Va., shipyard. What impact will this project have on the worldwide bottleneck and delays in reactor vessel production? BEsnAinou The new manufac-turing facility at Newport News will help ensure the supply chain for new U.S. EPRs. Today, there is a worldwide strain on supplies of heavy reactor components, such as reactor vessels and steam gen-erators. This new facility will help ensure that our projects in the United States will have these components when they are needed. The new facility will also create more than 500 new jobs in the local area.

EnErgyBiz Why did Areva enter the joint venture with Northrop Grumman at this time, as opposed to building up its manufacturing capability in France? BEsnAinou We formed Areva Newport News first and foremost to support the deployment of U.S. EPRs. The output of this facility will initially be devoted to EPRs that will be built in the United States. Already Areva’s Chalon Saint Marcel plant is running at full capacity. As we reviewed our options, we felt that developing production capacity in the United States was the best course of action. Locating the facility in the country also reduces our exposure to fluctuating exchange rates.

EnErgyBiz Will there be enough skilled laborers in the United States to build a fleet of new nuclear plants in the next 20 years? What policies can address this problem?

BEsnAinou We at Areva are actively recruiting new workers in the United States. AREVA currently employs 6,000 workers in the country. In addition, we hired 600 new employees this year and expect to do the same next year.

Areva is focused on recruiting the best talent to meet our needs, but we also recognize that we will have to cultivate some of this talent ourselves. For example, we have partnered with the Central Virginia Community College, near our Lynchburg, Va., facility, to train new technical staff.

EnErgyBiz Will there be enough senior executives and engineers in the United States to build and operate a new generation of nuclear plants in the next two decades? BEsnAinou Areva is engaged in recruiting many new engineers and other professionals at sites throughout the United States and Canada. We have formed partnerships with the University of Virginia and others to help address our aggressive recruit-ing plans. Our goal is to hire some 500 new engineers and support staff at our Lynchburg facility. In addition, we will need to hire engineers and others at our new manufacturing facility in Newport News.

EnErgyBiz Areva reported a doubling of its profit to $1.2 billion in the first six months of 2008. What is the financial outlook for your company for 2009 and coming years?

BEsnAinou We believe that Areva’s financial outlook will remain strong for 2009 and beyond. At present, we have a five-year backlog of orders, and we continue to pursue new contracts around the world. We are currently bidding on new reactor orders in Canada, South Africa and the United Arab Emirates. Areva recently received an order for four new EPRs in the United Kingdom. We will continue to pursue new business, not just for new reactors, but also for business throughout the nuclear fuel cycle, in transmission and distribution equipment and in renewable energies.

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