Areva S.A.is a Frenchmultinationalgroup specializing innuclear powerheadquartered in Courbevoie, France.[1]Before its 2016 corporate restructuring, Areva was majority-owned by the French state[2]through theFrench Alternative Energies and Atomic Energy Commission(54.37%),Banque publique d'investissement(3.32%), andAgence des participations de l'État(28.83%).[3]Électricité de France,of which the French government has a majority ownership stake, owned 2.24%;Kuwait Investment Authorityowned 4.82% as the second largest shareholder after the French state.[4]

Areva S.A.
Company typeState-owned enterprise
IndustryNuclear industry
PredecessorsFramatome
Cogema
Technicatome
Founded2001;23 years ago(2001)
SuccessorsFramatome
Orano
Technicatome
Headquarters,
France
Area served
Worldwide
Key people
Philippe Braidy(chairman and chief executive officer)
ProductsNuclear reactors
Nuclear fuel
Uranium
Electric power
ServicesNuclear enrichment
Nuclear material transport
Nuclear reprocessing
OwnerGovernment of France
Number of employees
45,340 (2013)
Subsidiaries
  • Areva NP
  • Areva NC
  • Areva TA
  • Areva Mines
  • Euriware
  • Areva Med
Websitewww.areva

As a part of the restructuring program following its insolvency, Areva sold out or discontinued its renewable energy businesses, sold its reactors business subsidiaryAreva NP(nowFramatome) toEDFand itsnuclear propulsionand research reactors subsidiary Areva TA (now Technicatome) to Agence des participations de l'État, and separated its nuclear cycle business into a separate company New Areva (becomingOrano). As a result, Areva S.A. became wholly state-owned by the French government, remaining responsible only for the liabilities related to theOlkiluoto 3project inFinlandand holding a 40% stake in Orano.

History

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Creation

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Former Areva headquarters, rue Lafayette in Paris

Areva was created on 3 April 2001 by themergerof Framatome (later: Areva NP, now: Framatome),Cogema(later: Areva NC, now:Orano Cycle) and Technicatome (later: Areva TA, now: Technicatome). It was based on the structure of its precursor, CEA-Industrie.Anne Lauvergeonbecame its first CEO.[5][6]

Jean-Pierre Raffarin,the formerPrime Minister of France,announced the privatization of Areva in 2003, but it was postponed several times, the French government opting finally for the privatization of GDF and EDF. At the end of October 2005, French Prime MinisterDominique de Villepinannounced that he had suspended the privatization process.

In 2003, Areva secured a contract for theOlkiluoto 3project, which foresaw construction of thethird generationEPR-typepressurised water reactor.In 2004 a contracted fixed price was established as €3.2 billion.[7]Construction started in 2005.[8]

In 2004, Areva acquiredAlstom's transmission and distribution activities, which became Areva T&D. It was sold back to Alstom andSchneider Electricin June 2010.[9]

On 15 September 2005, Areva andConstellation Energyof Baltimore announced ajoint venturecalled UniStar Nuclear to market the commercial EPR in the United States.[10]The joint venture later becameUniStar Nuclear Energyin 2007. In 2010, EDF acquired 100% of UniStar Nuclear Energy.[11]However these plans failed to come to fruition, and in February 2015 Areva suspended the EPR Design Certification Application Review process at the U.S.Nuclear Regulatory Commission(NRC).[12]

In 2006, Areva created its renewable energies business group.[13]Creusot Forge and Creusot Mécanique merged into the Areva group,[14][15]even though there were quality concerns over Creusot Forge's work.[16]In 2007, Areva purchased 51% of offshorewind turbinemanufacturer Multibrid.[17]Multibrid has been a start-up and German offshore wind pioneer, producing wind turbines in Bremerhaven. The innovative M5000 wind turbine has a compact medium speed drive train and carbon rotor blades. The patented air treatment to prevent corrosion was unique. The turbine design been made byaerodyn Energiesysteme GmbH. In 2015 the renewable unit of Areva changed into ADWEN GmbH.

In June 2010, Areva purchased the remaining 49% and formedAreva Wind.In February 2010, Areva bought Ausra, and renamed itAreva Solar.[18][19]

In 2007, Areva purchased UraMin, which later became Areva Resources Southern Africa (now part of Orano).[20]

In 2007, Areva started construction of theFlamanville 3EPR reactor. In addition, in November 2007 Areva agreed to an €8 billion deal with theChina Guangdong Nuclear Power Groupto supply them with two EPRs forTaishan Nuclear Power Plant.[21][22]Under the terms of the agreement, Areva also had to help operate the plant, including the reprocessing of spent fuel.[23]Also in 2007, Areva andMitsubishi Heavy Industriescreated a joint venture namedAtmeato develop a 1,100 MWe Atmea-1 pressurised water reactor (Generation III reactor).[24]In 2009,Siemenssold its remaining shares of Areva NP and Arvea NP became wholly owned by Areva.[25]At the same year, Areva NP acquired 30% stake in the Mitsubishi Nuclear Fuel company.[24]

On 6 May 2008, Areva announced that it would seek all necessary approval to build an enrichment facility in Bonneville County,Idaho.[26]The project was later cancelled. Also in 2008, Areva was awarded an operations contract to clean up theSellafield nuclear reprocessing siteas part of the Nuclear Management Partners consortium, made up of URS, Amec and Areva.[27]

In June 2008, Areva reached an agreement withKazatompromto create a joint-venture Katco.[28]

On 4 February 2009, Areva signed a memorandum to supply two to six nuclear reactors to theNuclear Power Corporation of India Limitedfor theJaitapur Nuclear Power Projectin the Indian state of Maharashtra.[29][30]

In March 2010, Areva indicated work was being done on a new type ofburner reactortype capable of breaking downactinidescreated as a product ofnuclear fission.[31]

In 2011, Areva was listed at theEuronextstock exchange in Paris.

Post-Fukushima problems

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In December 2011, Areva suspended building work at several sites in France, Africa and the United States, one day after forecasting a €1.6 billion ($2.1 billion) loss.

Areva halted "capacity extensions" at itsLa Hague Reprocessing Plant,in northern France, at its Melox factory in the southwest, and at two sites attached to its Tricastin power plant in the south. Work has also stopped on extensions to uranium mines inBakoumain the Central African Republic,Trekkopjein Namibia, and Ryst Kuil in South Africa,[32]and caused a potential delay in construction until a capital solution is secured for theEagle Rock Enrichment Facilityin the United States.[33]Areva wrote off most of the $2.5 billion purchase cost of Canadian uranium mining company Uramin, purchased in 2007, after concluding that its uranium ore deposits were of negligible value.[34]

In September 2014Standard & Poor'sstated it might downgrade Areva's credit rating following weak first-half results, leading to Areva indicating it would cut capital spending and dispose of some assets.[35]In March 2015 Standard & Poor's further downgraded Areva's credit rating to BB− after Areva posted a €4.8 billion loss for 2014.

In 2012, Areva acquired a hydrogen technology developerCompagnie européenne des technologies de l'hydrogène(CETH) and renamed it Areva H2Gen. At the same year, it inaugurated a hydrogen storage system called the MYRTE platform nearAjaccio,Corsica (MYRTE is the French acronym forMission Hydrogène Renouvelable pour l’intégration au réseau électrique).[36]The system aims to establish the feasibility of a storage solution forsolar energyusing hydrogen technologies, which would serve as a back-up system to stabilize Corsica's power grid.[36]In 2014, Areva's energy storage and management system, the Greenergy Box, was added to the existing installation, in operation since early 2013. In January 2014, Areva and Spain's wind turbine manufacturerGamesa Corporación Tecnológicacreated on the bases of Areva Wind a joint ventureAdwen.[37]In August 2014, Areva exited the solar industry.[38]

In October 2013, Areva won a $2.7 billion contract to supply two EPR nuclear reactors with nuclear steam supply and control systems at theHinkley Point Cplant inSomerset,England.[39][40]It will also provide uranium extraction and enrichment for the fuel fabrication stage.[41]

In December 2013, Areva andChina General Nuclear Power(CGN) agreed to a partnership in renewable energy, with a focus on offshore wind, biomass, concentrated solar power, and energy storage.[42]

In October 2014, CEO Luc Oursel took a leave of absence for health reasons.[35]He died in December of the same year.[43]On 20 November 2014 Standard & Poor's downgraded Areva long-term debt to BB+ and short-term-debt to A-3.[44][45]

In May 2014, Areva through its subsidiary CETH2, and the ADEME (French Environment and Energy Management Agency), announced the creation of the AREVA H2-Gen joint venture.[46]

In December 2015 operations atLe Creusot Forgewere stopped following a discovery at theFlamanville Nuclear Power Plant.[47][48]About 400 large steel forgings manufactured by Le Creusot Forge since 1965 found to have carbon-content irregularities that weakened the steel. A widespread programme of reactor checks was started involving a progressive programme of reactor shutdowns. This caused power price increases in Europe as France increased electricity imports, especially from Germany, to augment supply.[49][50]In December 2016 international inspectors found evidence of recent doctored paperwork, which had not been detected by Areva's independent quality control checks.[51][52]In April 2017Autorité de sûreté nucléaire(ASN) published the requirements for forging to resume at Le Creusot Forge.[47][48]In August 2017 ASN published a draft decision requiring the examination of Le Creusot Forge manufacturing records of all components during scheduled reactor refuelling outages.[53]

Restructuring

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In June 2016 Areva's restructuring plans were made public, including the sale of the majority of its reactor business to EDF in 2017, excluding theOlkiluoto 3 EPRunder construction in Finland which will remain with Areva SA.[54]In December 2017, Areva and EDF signed agreements on the transfer of Areva NP's nuclear reactor operations.[55]As part of the restructuring plan, Areva created a new fuel cycle company, dubbed as New Co or New Areva. The new company combined Areva Mines,Areva NC,Areva Projects, and Areva Business Support companies.[56]It was created as a wholly owned subsidiary of Areva; however, Areva lost control over the company as the French government invested to recapitalize the company. On 23 January 2018 that company changed its name to Orano.[56][57]In January 2017, Areva sold its stake in the wind turbine manufacturer Adwen.[58]In March 2017, Areva sold its nuclear propulsion and research reactor subsidiary Areva TA toAgence des Participations de l'Etat.[59]

Current operations

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Olkiluoto-3under construction in 2009

As of 2019,Areva S.A. is responsible only for the liabilities related to the Olkiluoto 3 project. The reactor, which is one of the first of the newGeneration III reactors,was initially expected to begin producing electricity in 2009, but project completion was delayed eventually until 2023, and it has faced several price increases.[7]Areva and TVO have reached an agreement, according to which Areva would pay €450 million in compensation over the delays and lost income. The agreement would settle all legal actions between the two companies.[60][61]

Areva also holds of 40% stake in Orano.

Past operations

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Areva was a company with apresence in each industrial activitylinked to nuclear energy:mining,chemistry, enrichment, fuel assembly, reprocessing, engineering, nuclear propulsion and reactors, treatment, recycling, stabilization and dismantling. Areva also offered technological solutions for renewable energy.[62]Areva's activities were divided into five business groups.[63]

Nuclear operations

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The mining business group managed the exploration of uranium ore, its extraction, and processing, as well as the restoration of sites after mine closure.[64]It had staff on five continents and operated uranium production sites in Canada, Kazakhstan, and Niger.[65]As of the end of 2013, the Mining Business Group employed 4,463 people.[66]Uranium production accounted for 19% of Areva's consolidated revenue in 2013.[67]It is now part of Orano.

The front end business group provided access to fuel for Areva's customers, and oversees operations to convert uranium into nuclear fuel, including the chemical conversion of ore intouranium hexafluoride,the enrichment of uranium, and the design and production of fuel for nuclear reactors.[68]As of the end of 2013, 8,555 people worked for Areva's front end business group.[69]It accounted for 24% of Areva's consolidated revenue in 2013.[69]It is now part of Orano.

The reactors and services business group designed and builtpressurized water reactorsandboiling water reactors,and offers products to service nuclear reactors. It is now part of Framatome. The business group also designed and built naval propulsion and research reactors, which is now Technicatome. The business group had 15,592 employees at the end of 2013 and generated 36% of Areva's revenue in the same year.

The back end business group developed recycling solutions for used fuel for reuse in reactors. It also offered storage and transportation solutions for radioactive material, and site rehabilitation at nuclear facilities. It is now part of Orano. At the end of 2013, it had 11,583 employees and made up for 19% of Areva's revenue. In 2017 the NUHOMS Matrix advancedused nuclear fuel storageoverpack, a high-density system for storing multiple spent fuel rods in canisters, was launched.[70]

Renewable energy operations

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Areva created its global renewable energies business group in 2006 as an expansion of itsclean energyportfolio withrenewable energy.[13]This group represented four business lines:concentrated solar power,offshorewind power,biomasspower, and hydrogen power storage and distribution. Areva builtbiomasspower plants worldwide, representing 2.5 GWe of installed capacity.[71]These plants are located in Brazil, Chile, Germany, the Netherlands, India and Thailand.[71][72][73]Its subsidiary Areva Renewables Brazil built biomass power plants based on bagasse (organic waste from sugar cane).[74]In the United States, Areva formed a partnership withDuke Energyto build and operate 55 MW biomass power plants based on wood waste.[75]

Areva acquired a bio-coal production technology called Thermya,[76]which produces a biofuel issued from biomass torrefaction that can replace coal to generate thermal energy and electricity.[77][78]Areva also developed AdCub, a modular concept for compact power plants targeting small-scale biomass resources that addresses relatively untapped growth opportunities in Europe. The objective is to combine innovative solutions which optimize customer costs for small-scale power plants (between 3 and 6 MW) and reduce construction time. This new biomass plant concept also aims to improve upstream technologies for multi-fuel acceptance and higher availability.[77]

Areva designed, manufactured and industrialized turnkey energy storage solutions and products to generate electricity withfuel cellsand produce hydrogen by electrolysis. Areva supported research in the hydrogen field through partnerships with a number of industrial companies and national research organizations includingAgence Nationale de la Recherche,the Horizon Hydrogen Energy (H2E) program, PAN-H (Plan d'Action National sur l'Hydrogène et les piles à combustible) and Pôle Capenergies, an innovation cluster dedicated to the development of renewable forms of energy without greenhouse gas emissions.[79]

Other operations

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Areva was involved inmilitary technology,such as designing the nuclear reactor for theFrench Barracuda class submarine.[80]One of Areva's subsidiaries,Euriware(founded in 1991) was specialized in consulting and IT services and employs 2,200 people.[81]Areva also owned 1.99% ofSafranand 1.4% ofSuez Environnement.[82][83]

CERCA, a subsidiary of Areva that produces fuel for research reactors, was also involved inTRIGA,a research reactor established in 1996 with the US firmGeneral Atomicsthat is used for training, research, and the production of radioisotopes.[84]

Areva was a former corporate member of theBruegelthink tank.[85]

Notable incidents

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2007 fine

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In January 2007, Areva was fined €53 million by theEuropean CommissionforriggingEU electricity markets through acartelinvolving 11 companies, includingABB,Alstom,Fuji,Hitachi Japan,AE Power Systems,Mitsubishi Electric Corp,Schneider Electric, Siemens,Toshibaand VA Tech ELIN.[86]According to the commission, "between 1988 and 2004, the companies rigged bids for procurement contracts, fixed prices, allocated projects to each other, shared markets and exchanged commercially important and confidential information."[86]

Areva is not accused of any cartel involvement other than through the acquisition of an Alstom unit in January 2004. "This subsidiary was acquired by the Areva group towards the end of the infringement, in January 2004. The parent entities of the Areva group share a joint liability with that subsidiary for the period after its acquisition."[87]"A few months before the cartel ended, Alstom sold the unit involved to Areva, which knew nothing of the cartel. It [Areva] and Alstom have joint liability for 53.6 million, which they must decide how to split."[88]

EU Competition CommissionerNeelie Kroesdeclared that "The commission has put an end to a cartel which has cheated public utility companies and consumers for more than 16 years".[89]

Libya deal

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On 13 August 2007, the French newspaperLe Parisienalleged that theFranco-Libyan civil nuclear power agreementsigned by PresidentNicolas Sarkozydid not concern desalinization of sea water, as claimed by the French government, but instead focused in particular on selling the EPR to Libya, a contract potentially worth $3 billion.[25]Le Parisiencited Philippe Delaune, deputy to the deputy director of international affairs for theCEA atomic agency,which is the main share-holder in Areva.[25]Following allegations that the deal had been related to therelease of the Bulgarian nurses,theFrench Socialist Party,through the spokespersonJean-Louis Bianco,declared that this deal was "geopolitically irresponsible".[25]TheGerman governmentalso denounced the agreement.[25]

Bakouma assault

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On 24 June 2012, an armed group assaulted a uranium plant operated by Areva atBakoumain the southeast of theCentral African Republic.A statement by the military described that "a violent clash on Sunday afternoon pitted" Central African troops against "an unidentified group of armed men attempting to launch an assault on the site of mining company Areva".

According to the report the army successfully repelled the attack, but "the enemy did some material damage and pulled back while taking a sizeable quantity mainly of food with them." The Areva group issued no immediate statement regarding the attack. Central African military sources believe that the attack was organized by members of theChadianrebel groupPopular Front for Recovery(FPR) led by 'General' Baba Ladde, which has been active in the region since 2008. The army says it is conducting further operations to neutralize the remaining armed rebels in the region of Bakouma.[90][91]

Attack in Niger

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In May 2013, the company's uranium mine in Niger was damaged and one civilian was killed in anAl-Qaeda-linked suicide bomb attack.[92]The mine reached full production again in August 2013.[93][94]

Tuareg people

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In November 2009, Greenpeace released a report indicating that two villages near Areva's mining operations in Niger had dangerously high levels of radiation.[95][96]

In January 2014,Al JazeeraproducedOrphans of the Sahara,three-part series on theTuareg peopleof the Sahara desert, in which claims were brought to light that Areva mining and consequent irradiations are causing diseases and deaths among their people.[97]

Al Jazeera also published Areva's response, in which the company said it submits regular reports on its environmental monitoring of water, air and soil to the Nigerien Office of Environmental Assessments and Impact Studies (BEEEI) which indicate that there is no pollution around the sites in question.[98]

Corporate issues

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Name etymology

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The name Areva was derived from the name of theCistercianAbbey ofArévalo.

Sport sponsorship

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Areva sponsored several sporting events over the years. In 2009, Areva launched Athlenergy, an online resource for runners,[99]and became the sponsor of the French Athletics Federation[100]and the official sponsor ofMeeting Areva,a track and field competition held annually at theStade de Francein Saint-Denis, France.[101]In May 2014, Athlenergy becameArevarun.Areva also sponsors several running events, including the Paris Half Marathon[102]and Saintélyon, a night run from Sainte Etienne to Lyon, in France.[103]

In 2008, Areva signed a contract to sponsor the German football clubFC Nürnberguntil 2012.[104]The contract was completed in 2012.[105]

Areva sponsored the French "Defi Areva" team in the 2002America's Cuprace, and the French "Areva Challenge" team in the 2007 America's Cup race. In 2002, during its first public appearance, in Lorient, France, the "Defi Areva" yacht collided with a dinghy carrying four Greenpeace protesters, and the impact knocked a hole in the side of the 80-foot boat.[106][107]

See also

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References

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