Antinuclear

Rocketing nuclear reactor costs send AREVA into the red!

While the rocketing costs of the OL3 EPR have dragged down AREVA’s results for years, this is the first time that they have sent the company into the red…..AREVA’s losses are ultimately borne by French taxpayers.

AREVA covers up extent of massive nuclear reactor cost overrun Greenpeace International by jmckeati – June 24, 2010 French nuclear giant AREVA were force to issue a profit warning yesterday. It has had to find an extra 400 million euros to cover the additional costs of building its so-called flagship European Pressurised Reactor at Olkiluoto in Finland. This is on top of 2.3 billion euro provisions put aside in previous years and brings the current estimated overrun to an eye-watering 2.7 billion euros. The initial cost of the project was 3.2 billion euros.

While the rocketing costs of the OL3 EPR have dragged down AREVA’s results for years, this is the first time that they have sent the company into the red. The company’s financial health has already been suffering thanks to the Olkiluoto project, as it struggles to build up its reserves for planned future investments.

But that’s not the end of it. This announcement of another enormous cost overrun will not be the last…………We can also expect additional delays in the reactor’s construction as it is only just halfway to completion. The most challenging phases of construction are still underway or to come, including the installation of heavy components, the design and installation of computer systems, and the final testing and licensing………..So, it’s all a huge ugly, costly mess. Who bears the burden of AREVA’s incompetence? As the company is almost completely state-owned AREVA’s losses are ultimately borne by French taxpayers. The public will have to open their wallets yet again to bail out another nuclear boondoggle.

AREVA covers up extent of massive nuclear reactor cost overrun | Greenpeace Int

June 25, 2010 - Posted by Christina Macpherson | uranium | antinuclear, nuclear, nuclear costs, uranium