Flash - Areva seals $11.9 B China Deal

Two 1,700 Mw reactors
will be built at coastal sites


Bloomberg wire service reports Areva SA has won an 8 billion euro ($11.9 billion) nuclear reactor agreement from China, a record deal for the French company and twice as large as expected. The deal includes two reactors, uranium enrichment, and separate work, which is potentially larger than the reactor deal itself, for nuclear fuel reprocessing. Areva also committed to transferring nuclear reactor technologies to state-owned Chinese nuclear companies.

China Guangdong Nuclear Power Group Co. will order two nuclear reactors Areva Chief Executive Officer Anne Lauvergeon said in Beijing on 11/26 during President Nicolas Sarkozy's visit to the Chinese capital. Guangdong Nuclear will also gain access to 35% of production from Areva's uranium unit.

"It's a record contract,'' Lauvergeon said. "There will be technologies transferred in the ventures'' to Areva's Chinese partner. Contracts for the accord were signed in Beijing on Monday 11/26. Electricite de France SA, Europe's largest power generator, will own 30 percent of two nuclear power reactors Areva will build in the city of Taishan in southern China's Guangdong province. The reactors will each have capacity of 1,600 MWe.

The French and Chinese governments will sign a separate cooperation contract involving China National Nuclear Corp., the nation's biggest nuclear reactor builder, to study building a E$15 billion spent nuclear fuel reprocessing facility in China, Lauvergeon said.

Areva and China Guangdong Nuclear may change the location of two reactors proposed for southern China to fit in with the region's energy plans, Chu Pinchuang, senior engineer at the Chinese company said last August. The reactors were planned for Yangjiang in the province of Guangdong. China has plans for multiple reactors in the coastal province.

References
* Areva's (28 page PDF file) press kit
* Areva's press release and links to videos; portal page