France Reaffirms Nuclear Future, Point of Political Debate

By Dave Brown – Exclusive to Uranium Investing News

Following the earthquake and tsunami in Japan last March, France launched an immediate review of its nuclear facilities and operations. The results of the operational review by France’s nuclear safety regulator, the Autorité De Sûreté Nucléaire, were released at the beginning of the year confirming a positive report for the industry. 

The assessment covered a targeted range of 79 of the country’s 150 prioritized nuclear facilities. The review indicates that all the facilities examined offer a sufficient level of safety not to require a shutdown for any of them although an increase in the safety measures to account for extreme situations, beyond their existing safety margins should be implemented.

The report calls for an additional margin of safety combining risks from natural disasters in addition to adjacent commercial and industrial developments. During a potential nuclear accident the objective is to rely on  ‘hard core’ safety requirements. These preparations would enable equipment to function during periods exceeding the basic design of the nuclear plant including fires, earthquakes, prolonged power loss and emergency cooling. A ‘rapid action’ force should be available to support any plant in the country within a day with highly capable staff and essential equipment including mobile diesel generators and aerial support. The report also wants all French nuclear utility operators to examine surface or groundwater contamination threats under all circumstances.

Political challenge

On May 6, French President Nicolas Sarkozy, who supports a progressive nuclear program will be seeking a re-election versus a Socialist opponent, Francois Hollande. Hollande prefers to reduce the country’s nuclear program to around 50 percent of current capacity by 2025. Sarkozy suggests the opposition’s platform would result in more expensive electricity rates, hundreds of thousands of job losses, and industrial decline. Advocating his policy during a tour of a uranium enrichment facility, “We should not return to an era of candlelight. This isn’t the time to go back to the Middle Ages, to medieval fears when people were scared of progress.” Polls taken in France within 3 months of the Fukushima catastrophe indicated 62 percent of respondents wanted to reduce the nuclear program over 30 years, while 22 percent remained committed and about 15 percent opted for a more immediate termination.

Qualifying earthquake risk and cost concerns

Historically in France, seismic activity has not been as important as it has been along more dynamic tectonic plates including the well known “ring of fire.” However, the Lambesc earthquake in 1909 destroyed several villages in the Alps and caused 40 deaths. Other earthquakes in France during the last 40 years include: Oléron in 1972, Arette in 1980, Maastricht in 1994 and Axat, in the Pyrenees in 1996. Some criticism for the report highlights the fact that costs to make policy upgrades involves expenses that might otherwise be used developing alternative energy programs. As with other nations, France is balancing to meet ever-increasing electricity demand with a secure energy resource in the safest, most efficient and least environmentally destructive capacity. This underlying foundation should provide strong long term support for the nuclear movement.

Last year Germany made policy decisions to gradually phase out nuclear energy; however, it remains unclear how the country will replace as much as 29 percent of its current electricity demand. If Germany does not reconsider these plans, France may find a potential export market for its nuclear energy.

Uranium spot market price stability

Over the last week, TradeTech reported no change in the price of uranium from the year end value of $52.00 per pound of uranium. According to the consultants, the first part of the year is off to a slow start for the uranium spot market volumes, with only three transactions reported.

Despite price volatility affecting the uranium spot market throughout last year, higher spot volume prevailed to set a new record of 45.8 million pounds for the year, surpassing spot transaction volume of 42.8 million pounds of uranium in 2010, the highest level recorded in two decades.