Areva

Areva S.A.
Company type	Société Anonyme
Industry	Nuclear power
Predecessor	CEA-Industrie
Founded	April 3, 2001; 25 years ago in Courbevoie, France
Founder	Anne Lauvergeon (inaugural CEO)
Defunct	2018
Fate	Restructured and divested assets; reactor subsidiary sold to EDF; fuel cycle segment renamed Orano; nuclear propulsion sold to Agence des participations de l'État
Headquarters	Courbevoie, France
Area served	Worldwide
Key people	Anne Lauvergeon (first CEO), Luc Oursel (CEO until 2014)
Products	Nuclear reactors, nuclear fuel cycle, renewable energy (former)
Owner	French government (majority before 2016 reorganization)

Areva S.A. was a French multinational corporation specializing in nuclear power that operated from 2001 until 2018, with its headquarters located in Courbevoie, France. Prior to its 2016 reorganization, the French government held the majority stake through the French Alternative Energies and Atomic Energy Commission (54.37%), Banque publique d'investissement (3.32%), and Agence des participations de l'État (28.83%). Additionally, Électricité de France, itself predominantly state-owned, possessed 2.24%, while the Kuwait Investment Authority owned 4.82%.

After facing insolvency, Areva divested its renewable energy operations and transferred its reactor subsidiary Areva NP (currently known as Framatome) to EDF. The nuclear propulsion and research reactors division Areva TA (now TechnicAtome) was sold to the Agence des participations de l'État, while the nuclear fuel cycle segment was restructured into New Areva, subsequently renamed Orano. A new holding entity, Areva S.A., was created to oversee ongoing high-risk projects such as completing the Olkiluoto 3 reactor in Finland and managing the finalization of Areva NP's sale.

The transaction for Areva TA closed in 2017, followed by the sale of Areva NP in January 2018, effectively marking the conclusion of the original Areva group.

Formation

Areva was founded on 3 April 2001 through the consolidation of Framatome (later Areva NP, now Framatome), Cogema (later Areva NC, currently Orano Cycle), and Technicatome (later Areva TA, now Technicatome). This merger built upon the foundation of its predecessor CEA-Industrie. The company’s inaugural CEO was Anne Lauvergeon.

In 2003, former French Prime Minister Jean-Pierre Raffarin revealed intentions to privatize Areva; however, this initiative was delayed multiple times as government priorities shifted towards privatizing GDF and EDF instead. By late 2005, Prime Minister Dominique de Villepin halted the privatization process.

That same year, Areva secured a contract to construct a third-generation EPR pressurized water reactor at Olkiluoto 3 in Finland for a fixed price of €3.2 billion. Construction commenced in 2005.

In 2004, Areva purchased Alstom’s transmission and distribution division, creating Areva T&D; this segment was later sold back to Alstom and Schneider Electric in 2010.

On 15 September 2005, Areva partnered with Baltimore-based Constellation Energy to establish UniStar Nuclear with the aim of marketing the EPR reactor within the United States. This joint venture evolved into UniStar Nuclear Energy in 2007; EDF assumed full ownership by 2010. Despite these efforts, plans stalled and in February 2015 Areva halted the U.S. NRC’s EPR design certification review.

Areva initiated its renewable energy division in 2006. It integrated Creusot Forge and Creusot Mécanique into its operations despite concerns regarding Creusot Forge’s product quality. In 2007, Areva acquired a majority stake (51%) in German offshore wind turbine manufacturer Multibrid, recognized for its advanced M5000 turbine featuring carbon rotor blades and patented corrosion-resistant air treatment technology. This renewable energy branch was rebranded as ADWEN GmbH in 2015.

In June 2010, Areva completed acquisition of all remaining Multibrid shares to establish Areva Wind. Earlier that year it also acquired solar startup Ausra, which was rebranded as Areva Solar.

Areva expanded its uranium portfolio by acquiring UraMin in 2007; this asset is now part of Orano Resources Southern Africa.

Construction on the Flamanville 3 EPR reactor began in 2007. In November of that year, Areva secured an €8 billion contract with China Guangdong Nuclear Power Group to supply two EPR reactors for the Taishan Nuclear Power Plant alongside operational support including spent fuel reprocessing services. Also in 2007, Areva collaborated with Mitsubishi Heavy Industries to create Atmea for developing the Atmea-1 Generation III pressurized water reactor.

By 2009, Siemens divested its remaining shares of Areva NP to Areva, which also acquired a 30% interest in Mitsubishi Nuclear Fuel.

In May 2008, plans were announced for an enrichment facility in Idaho; however, this project was subsequently cancelled. That same year, Areva joined Nuclear Management Partners consortium tasked with managing cleanup at Sellafield nuclear reprocessing site.

In June 2008, a partnership was formed between Areva and Kazatomprom establishing Katco joint venture focused on uranium mining activities.

On 4 February 2009, Areva signed a memorandum of understanding to supply between two and six reactors for India’s Jaitapur Nuclear Power Project.

By March 2010, development efforts were underway at Areva for advanced burner reactors aimed at reducing nuclear waste by transmuting actinides produced during fission processes.

Areva went public on the Euronext Paris stock exchange in 2011.

Challenges Following Fukushima

In December 2011, Areva halted construction activities at several locations across France, Africa, and the United States after projecting a €1.6 billion (approximately $2.1 billion) financial shortfall. Projects were suspended at the La Hague Reprocessing Facility, Melox plant, and sites associated with the Tricastin nuclear power station, alongside expansions of uranium mining operations in Bakouma (Central African Republic), Trekkopje (Namibia), and Ryst Kuil (South Africa). Additionally, progress on the Eagle Rock Enrichment Facility in the US was delayed pending financial restructuring. Areva also took a significant write-down on its $2.5 billion acquisition of Canadian uranium miner Uramin, concluding that its mineral reserves had minimal value.

By September 2014, Standard & Poor’s issued warnings about a potential downgrade of Areva’s credit rating due to ongoing poor financial performance, leading the company to reduce capital expenditures and explore asset sales. Subsequently, in March 2015, S&P lowered Areva’s credit rating to BB− following a €4.8 billion loss reported for 2014.

In 2012, Areva expanded into hydrogen technology by acquiring Compagnie européenne des technologies de l'hydrogène (CETH), which was rebranded as Areva H2Gen. The company initiated the MYRTE hydrogen storage project in Corsica to support renewable energy integration and grid stabilization. The Greenergy Box energy management platform was introduced in 2014. That same year, Areva entered into a joint venture with Spain’s Gamesa Corporación Tecnológica to establish Adwen, focusing on offshore wind turbine manufacturing. However, Areva exited the solar energy sector by August 2014.

In October 2013, Areva secured a contract worth $2.7 billion to supply two EPR nuclear reactors at Hinkley Point C in the United Kingdom. This agreement included providing nuclear steam supply systems, control systems, and overseeing uranium extraction and enrichment for fuel production.

December 2013 saw Areva collaborate with China General Nuclear Power Group (CGN) to pursue renewable energy ventures centered on offshore wind power, biomass energy, concentrated solar power technologies, and energy storage solutions.

CEO Luc Oursel took a medical leave in October 2014 and passed away two months later. Shortly thereafter, Standard & Poor’s downgraded Areva’s long-term debt rating to BB+ and short-term debt rating to A-3.

In May 2014, Areva partnered with the French Environment and Energy Management Agency (ADEME) to form AREVA H2-Gen, a joint venture aimed at advancing hydrogen production through PEM electrolysis technology.

Operations at Le Creusot Forge were suspended in December 2015 after irregularities were detected in carbon content within steel forgings dating back to 1965. This discovery prompted widespread inspections and temporary shutdowns of reactors throughout France, contributing to increased electricity prices across Europe due to higher reliance on imports. By December 2016, international inspectors revealed falsified quality control documentation that had escaped detection by Areva’s internal audits. In April 2017, the Autorité de sûreté nucléaire (ASN) imposed conditions for resuming forging activities at Le Creusot Forge and mandated EDF to review manufacturing records during reactor maintenance outages.

Corporate Restructuring

In June 2016, Areva announced a comprehensive restructuring strategy that involved divesting the majority of its reactor business to EDF in 2017, with the exception of the Olkiluoto 3 EPR project in Finland which remained under Areva SA’s ownership. By December 2017, formal agreements transferring reactor operations from Areva NP to EDF were finalized. Concurrently, Areva established a new fuel cycle entity—initially referred to as New Co or New Areva—by consolidating Areva Mines, Areva NC, Areva Projects, and Business Support divisions. Following recapitalization by the French government, this subsidiary lost majority control by Areva and was renamed Orano in January 2018.

Areva divested its interest in wind turbine manufacturer Adwen in January 2017. Subsequently, by March 2017, it sold its nuclear propulsion and research reactor unit Areva TA to the Agence des Participations de l'État.

Current operations

As of 2019, Areva S.A. is exclusively accountable for the liabilities connected to the Olkiluoto 3 project. This Generation III nuclear reactor, originally slated to begin electricity generation in 2009, encountered significant delays that postponed completion until 2023 and resulted in budget overruns. A settlement between Areva and TVO was reached, under which Areva agreed to compensate €450 million for the postponements and revenue losses, thereby settling all outstanding legal conflicts.

Areva continues to hold a 40% ownership interest in Orano.

Past operations

Areva's former activities spanned the full spectrum of the nuclear energy sector, encompassing uranium extraction, chemical processing, enrichment, fuel fabrication, reprocessing, engineering, naval propulsion and reactor manufacturing, waste treatment, recycling, stabilization, and decommissioning. Additionally, it offered technological solutions within the renewable energy domain. The company structured its operations into five distinct business divisions.

Nuclear operations

The mining division oversaw uranium exploration, extraction, processing, and site rehabilitation efforts. Operating in countries such as Canada, Kazakhstan, and Niger with personnel distributed across five continents, it employed 4,463 individuals as of late 2013. Uranium production accounted for 19% of Areva’s consolidated revenues that year. This division has since been integrated into Orano.

The front end division focused on converting uranium into nuclear fuel. Its activities included chemical conversion to uranium hexafluoride, enrichment processes, as well as fuel design and manufacturing. At the end of 2013, this segment employed 8,555 staff members and represented 24% of Areva’s revenue. It is now incorporated within Orano.

The reactors and services division was responsible for designing and constructing pressurized water reactors and boiling water reactors alongside providing services for nuclear reactors. This group also covered naval propulsion systems and research reactor design (now under Technicatome). With a workforce of 15,592 at the close of 2013, it generated 36% of Areva’s total revenue. This segment has since become part of Framatome.

The back end division developed solutions for recycling spent fuel to enable reuse in reactors and offered services including storage and transportation of radioactive materials as well as site restoration. Employing 11,583 people at the end of 2013, it contributed 19% to Areva’s revenue. Now part of Orano, this division introduced the NUHOMS Matrix advanced dry cask storage system in 2017—a high-capacity solution designed to store multiple spent fuel assemblies within canisters.

Renewable energy operations

In 2006, Areva launched its global renewable energies division to broaden its portfolio in clean energy technologies with a focus on concentrated solar power, offshore wind power, biomass energy production, and hydrogen storage and distribution systems. The company developed biomass power plants worldwide with an aggregate installed capacity of 2.5 GWe across Brazil, Chile, Germany, the Netherlands, India, and Thailand. Its subsidiary Areva Renewables Brazil specialized in biomass generation utilizing bagasse derived from sugar cane waste. In the United States, Areva collaborated with Duke Energy to construct and operate biomass plants with a combined capacity of 55 MW fueled by wood residues.

Areva acquired Thermya technology for producing bio-coal—a biomass-derived substitute for coal used in thermal energy and electricity generation. The company also created AdCub: a modular concept aimed at compact biomass power plants ranging from 3 to 6 MW designed for smaller European markets. AdCub seeks to optimize customer expenditures while shortening construction timelines and enhancing multi-fuel compatibility and operational availability.

Within hydrogen and fuel cell sectors, Areva engineered turnkey energy storage solutions capable of producing electricity alongside hydrogen generation via electrolysis. It supported research initiatives through collaborations with industrial partners and national agencies such as Agence Nationale de la Recherche, the Horizon Hydrogen Energy program, PAN-H consortium, and Pôle Capenergies—an innovation cluster dedicated to advancing renewable energies free from greenhouse gas emissions.

Additional Activities

Areva was involved in defense technology, particularly in developing the nuclear reactor for the French Barracuda class submarine. One of its subsidiaries, Euriware, established in 1991, focused on IT consulting and services, employing approximately 2,200 staff members. Additionally, Areva maintained minority shareholdings in Safran (1.99%) and Suez Environnement (1.4%).

Another subsidiary, CERCA, manufactured fuel for research reactors and partnered with the American company General Atomics on the TRIGA research reactor, which is utilized for training, scientific research, and producing radioisotopes.

Areva was also previously affiliated as a corporate member with the Bruegel think tank.

2007 Penalty

In January 2007, the European Commission imposed a €53 million fine on Areva due to its involvement in an EU electricity market cartel alongside 11 other corporations such as ABB, Alstom, Siemens, and Mitsubishi Electric. This cartel operated between 1988 and 2004, engaging in bid rigging, price fixing, project allocation, and exchanging confidential information.

Areva’s responsibility stemmed from its acquisition of an Alstom division implicated in the cartel in January 2004. Despite Areva’s lack of knowledge regarding these cartel activities, it shares joint liability with Alstom for offenses committed after the acquisition date. The combined penalty of €53.6 million was divided between Areva and Alstom.

EU Competition Commissioner Neelie Kroes remarked that the commission had dismantled a cartel that defrauded public utilities and consumers for more than sixteen years.

Libyan Agreement

On 13 August 2007, the French newspaper Le Parisien reported that the Franco-Libyan civil nuclear power agreement signed by President Nicolas Sarkozy was not primarily intended for seawater desalination as officially stated but was chiefly about selling the EPR reactor to Libya in a deal potentially valued at $3 billion. The article referenced Philippe Delaune from the CEA atomic agency, Areva's principal shareholder. Following allegations connecting this agreement to the release of Bulgarian nurses involved in the HIV trial in Libya, the French Socialist Party condemned the deal as "geopolitically reckless," while the German government also criticized it.

Bakouma Attack

On 24 June 2012, Areva’s uranium facility in Bakouma, located in southeastern Central African Republic, was targeted by an armed faction. Central African military forces repelled the assault; however, attackers inflicted material damage and seized supplies. The army attributed responsibility to the Chadian rebel group known as the Popular Front for Recovery (FPR), which has been active since 2008 under its leader 'General' Baba Ladde. Efforts continued to eliminate remaining insurgents in that area. Areva did not issue an immediate statement regarding this incident.

Niger Incident

In May 2013, a suicide bombing linked to Al-Qaeda caused damage to Areva's uranium mining operation in Niger and resulted in one civilian fatality. By August 2013, mining activities had fully resumed.

Tuareg Community

Greenpeace reported in November 2009 that two villages near Areva’s mining sites in Niger exhibited alarmingly high radiation levels. Later, in January 2014, Al Jazeera aired a three-part series titled Orphans of the Sahara, which presented allegations that Areva’s mining undertakings were responsible for illnesses and fatalities among the Tuareg population. In response, Areva stated that it consistently submits environmental monitoring data to Niger’s Office of Environmental Assessments and Impact Studies (BEEEI), which confirm no contamination around their operational sites.

Sports sponsorship

Areva has engaged in sponsoring diverse sports activities to boost its brand recognition. In 2009, the company introduced Athlenergy.com, a digital platform designed for runners, and took on sponsorship roles with the French Athletics Federation as well as the annual Meeting Areva track and field event held at Stade de France. By May 2014, Athlenergy.com was renamed Arevarun. Furthermore, Areva backs major running competitions such as the Paris Half Marathon and the Saintélyon night race.

Between 2008 and 2012, Areva was a sponsor of the German football team FC Nürnberg. The company also supported French participants in the America's Cup sailing contests, including "Defi Areva" in 2002 and "Areva Challenge" in 2007. A notable incident occurred during the 2002 debut of "Defi Areva" in Lorient when its yacht struck a Greenpeace dinghy, resulting in damage to the vessel.

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