French President Announces Construction of Second New Nuclear Reactor

EPR Number Two

There are few doubts over Nicolas Sarkozy's support for nuclear power. Since assuming the French presidency in May 2007, he has launched an international campaign advocating the adoption of nuclear energy and marketing the ability of France's world-leading nuclear technology firms. His efforts have seen France sign co-operation accords on civilian nuclear energy with Algeria, Morocco, Tunisia, the United Arab Emirates, Libya, and Jordan over the last 12 months. With momentum clearly building in his international campaign, Sarkozy has now returned his focus to the domestic front, announcing yesterday in a speech at steel factory ArcelorMittal that France will move forward with the construction of a second third-generation nuclear reactor to accompany the construction of the new reactor at Flamanville initiated in December last year (see France: 5 December 2007:France Begins Work on 60th Nuclear Reactor).

The announcement comes as no surprise given France's existing reliance and ongoing support for nuclear power. The country currently has 59 nuclear reactors, which provide 87% of the country's electricity supply. France began a deliberate process to build up a strong nuclear capacity in the 1970s in the wake of the first oil crisis and in the context of the country's relative dearth of oil and gas reserves. A number of the country’s older reactors are due for decommissioning from 2020, and the Flamanville project, which was confirmed in May 2006, has been seen as something of a test case for the launch of a broader nuclear construction programme. With the Flamanville project only under way for six months, however, Sarkozy's announcement of the construction of a new reactor indicates that the "testing" provided by Flamanville may have been more related to public opinion, than the technical elements of the project.

The details on the new project remain scarce. Sarkozy gave no indication of where the plant might be located or when construction might begin. Nevertheless, Electricité de France (EDF), the operator of France's existing nuclear suite, jumped to attention on the announcement, quickly releasing a statement welcoming the decision and saying that it was "prepared to commit to this project". Yesterday's announcement is a further indication that EDF is extremely well-positioned to take advantage of further nuclear growth in France and to use this base as a springboard for a major role in the global nuclear renaissance.

Outlook and Implications

In making the announcement, Sarkozy took the opportunity to highlight his views of the benefits of nuclear energy. "The days of cheap oil are over; more than ever, nuclear is an industry for the future and an indispensable energy source," Sarkozy said, adding that nuclear power produces electricity 30-50% cheaper than either gas or coal. He also went on to hail the security and environmental benefits of the technology, claiming that each EPR constructed saves 2 bcm of gas consumption when it replaces a gas-fired plant and 11 million tonnes of carbon dioxide emissions each year when it replaces a coal-fired plant. Indeed, in an environment of rapidly rising fossil fuel prices and concerns over climate change, the advantages of the technology have seldom been more stark, and France's long-running policy to focus on nuclear power in its electricity sector see it as well placed as any country in Europe to deal with these long-term global energy challenges.

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