GDF Suez is set to boost its position in the French nuclear power sector with a minority share in the country’s second EPR project at Penly.
The French prime minister Francois Fillon has granted GDF Suez a 33.33 per cent block of shares plus one share in the company formed to build and operate the new nuclear plant. EDF will hold the majority of the capital.
GDF Suez says it will split its share with French oil firm Total on a 75:25 basis in line with an agreement between the two companies. This partnership will strengthen an existing alliance between GDF Suez and Total, who last year teamed up with Areva to submit a proposal for a new nuclear plant in Abu Dhabi.
Gérard Mestrallet, chairman and CEO of GDF Suez, said: “This decision is a major step forward in the implementation of GDF Suez’s nuclear strategy. The Group welcomes this partnership with Total and EDF and will make this project a success.”
The decision comes just days after a consortium consisting of GDF Suez, Iberdrola and Scottish and Southern Energy pulled out of the bidding to acquire sites for new nuclear development in the UK. The firms say that they will continue to pursue opportunities in this market as other potential sites come up for sale.
The Penly project represents Total’s first nuclear project. The French government decided to go ahead with the plant, to be located in Seine-Maritime, northern France, earlier this year. Construction is scheduled to start in 2012.
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