Technicatome

Areva S.A.
Company type	Société Anonyme
Industry	Nuclear power
Founded	April 3, 2001; 25 years ago
Defunct	2018
Headquarters	Courbevoie, France
Area served	Worldwide
Key people	Anne Lauvergeon (first CEO), Luc Oursel (former CEO)
Owner	French government (majority through several entities)
Parent	None

Areva S.A. was a French multinational corporation focused on nuclear power operations, active from 2001 until 2018, with its headquarters located in Courbevoie, France. Prior to its 2016 reorganization, the French government held the majority ownership through entities such as 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, predominantly state-owned, possessed a 2.24% stake, while the Kuwait Investment Authority was the second-largest shareholder at 4.82%.

After encountering financial difficulties, Areva divested its renewable energy segments and transferred its reactor subsidiary Areva NP (currently known as Framatome) to EDF. The unit specializing in nuclear propulsion and research reactors, Areva TA (now TechnicAtome), was sold to the Agence des participations de l'État. Meanwhile, its nuclear fuel cycle operations were restructured into New Areva, which was subsequently renamed Orano. A newly formed holding company named Areva S.A. was created to oversee remaining high-risk activities, including completing the Olkiluoto 3 project in Finland, concluding renewable energy initiatives, and managing the sale of Areva NP.

The transactions involving Areva TA and Areva NP concluded in 2017 and January 2018 respectively, with New Areva’s rebranding as Orano signaling the dissolution of the original Areva group.

Formation

Areva was founded on 3 April 2001 through the consolidation of Framatome (later known as Areva NP and now Framatome), Cogema (later Areva NC and currently Orano Cycle), and Technicatome (later Areva TA, now Technicatome). The organization was built upon its predecessor CEA-Industrie, appointing Anne Lauvergeon as its inaugural CEO.

In 2003, former French Prime Minister Jean-Pierre Raffarin revealed intentions to privatize Areva; however, this initiative was deferred multiple times as government efforts prioritized privatizing GDF and EDF. By October 2005, Prime Minister Dominique de Villepin officially halted the privatization process.

Areva secured a contract in 2003 to construct a third-generation EPR pressurized water reactor for the Olkiluoto 3 project at a fixed cost of €3.2 billion agreed upon in 2004. Construction commenced in 2005.

In 2004, Areva acquired Alstom’s transmission and distribution divisions to form Areva T&D; this unit was later divested back to Alstom and Schneider Electric in June 2010.

On 15 September 2005, Areva partnered with Constellation Energy to establish UniStar Nuclear aimed at promoting the EPR design within the United States market. This venture evolved into UniStar Nuclear Energy by 2007 before being fully acquired by EDF in 2010. Despite these efforts, progress stalled and by February 2015 Areva suspended its U.S. EPR Design Certification Application Review with the Nuclear Regulatory Commission.

In 2006, Areva expanded into renewables. Creusot Forge merged with Creusot Mécanique under Areva despite concerns regarding manufacturing quality at Creusot Forge. The following year, Areva obtained a controlling interest (51%) in offshore wind turbine producer Multibrid, recognized for its innovative M5000 turbine featuring carbon rotor blades and corrosion-resistant technology. This renewable energy division was renamed ADWEN GmbH in 2015.

By June 2010, Areva had acquired full ownership of Multibrid, consolidating it as Areva Wind. Earlier that year, it also purchased solar startup Ausra and rebranded it as Areva Solar.

In 2007, Areva acquired uranium mining company UraMin, which later became part of Areva Resources Southern Africa (currently integrated within Orano).

Construction began on the Flamanville 3 EPR reactor in 2007. That same year marked an €8 billion contract with China Guangdong Nuclear Power Group to supply two EPR units for the Taishan Nuclear Power Plant; this deal also included commitments for plant operation and spent fuel reprocessing services. Additionally, Areva collaborated with Mitsubishi Heavy Industries to establish Atmea for developing the Atmea-1 Generation III reactor.

By 2009 Siemens divested its stake in Areva NP, resulting in full ownership by Areva. That year also saw Areva NP acquire a 30% shareholding in Mitsubishi Nuclear Fuel.

In May 2008, Bonneville County in Idaho was selected for a proposed enrichment facility project that was subsequently cancelled. During that year, Areva joined the Nuclear Management Partners consortium responsible for operations at the Sellafield nuclear reprocessing site.

June 2008 witnessed the formation of Katco—a joint venture between Areva and Kazatomprom—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 was underway on a new burner reactor designed to minimize nuclear waste by breaking down actinides generated during fission.

Areva made its initial public offering on the Euronext Paris stock exchange in 2011.

Challenges Following Fukushima

In December 2011, Areva halted construction activities at multiple locations across France, Africa, and the United States after projecting a €1.6 billion ($2.1 billion) financial shortfall. Expansion efforts were stopped at the La Hague Reprocessing Plant, Melox facility, and Tricastin nuclear site, alongside uranium mine development projects 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 as funding solutions were sought. The company also wrote down nearly all of the $2.5 billion paid for Canadian uranium miner Uramin, acquired in 2007, after determining its uranium reserves to be insignificant.

Standard & Poor's issued a warning in September 2014 about a possible downgrade of Areva’s credit rating due to disappointing results in the first half of that year. This led Areva to reduce capital expenditures and sell off assets. By March 2015, S&P had 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), subsequently rebranding it as Areva H2Gen. That same year, the company initiated the MYRTE project in Corsica—a hydrogen storage system designed to stabilize the regional electricity grid through solar energy storage. In 2014, Areva integrated its Greenergy Box energy storage solution into the MYRTE platform. January 2014 saw Areva partner with Spain’s Gamesa to create the Adwen joint venture based on Areva Wind; however, Areva withdrew from the solar sector by August 2014.

In October 2013, Areva secured a $2.7 billion contract to supply two EPR nuclear reactors for the Hinkley Point C facility in Somerset, England, which included responsibilities for uranium mining and enrichment to produce reactor fuel.

By December 2013, Areva had entered a collaboration with China General Nuclear Power Group (CGN) to advance renewable energy initiatives focusing on offshore wind power, biomass, concentrated solar power, and energy storage technologies.

CEO Luc Oursel took medical leave in October 2014 and passed away in December of that year. Subsequently, Standard & Poor’s downgraded Areva’s long-term debt rating to BB+ and short-term debt to A-3.

In May 2014, Areva’s subsidiary CETH2 joined forces with the French Environment and Energy Management Agency (ADEME) to establish AREVA H2-Gen—a joint venture aimed at producing hydrogen through PEM electrolysis.

Operations at Le Creusot Forge were suspended in December 2015 after irregularities were discovered in the carbon content of roughly 400 large steel forgings dating back to 1965. This issue prompted widespread inspections and reactor shutdowns throughout France, contributing to increased electricity prices across Europe due to greater reliance on imports. In December 2016, inspectors uncovered recent falsifications in documentation that had escaped detection by Areva’s quality assurance processes. By April 2017, France’s nuclear regulator ASN imposed conditions for resuming forging activities at Le Creusot Forge and mandated comprehensive reviews of manufacturing records during reactor maintenance outages.

Corporate Restructuring

In June 2016, Areva announced plans for restructuring that included divesting most of its reactor division to EDF in 2017; however, the Olkiluoto 3 EPR project in Finland remained under Areva SA’s ownership. By December 2017, formal agreements were signed between Areva and EDF transferring control of Areva NP’s nuclear reactor operations. Concurrently, Areva established a new entity—initially referred to as New Co or New Areva—merging its mining operations (Areva Mines), nuclear cycle activities (Areva NC), project management (Areva Projects), and business support functions into a single subsidiary. Following recapitalization by the French government, this subsidiary became independent from Areva and was renamed Orano in January 2018. Prior divestments included the sale of Areva’s stake in wind turbine manufacturer Adwen in January 2017 and the disposal of its nuclear propulsion and research reactor unit Areva TA to the Agence des Participations de l'État in March 2017.

Current activities

By 2019, Areva S.A.’s responsibilities were limited to managing the liabilities associated with the Olkiluoto 3 project. This Generation III reactor, originally slated to commence electricity generation in 2009, encountered delays that postponed its completion until 2023 and caused budget increases. A settlement was reached between Areva and TVO, under which Areva agreed to compensate €450 million for the delays and lost revenues, thereby settling all outstanding legal claims.

Additionally, Areva maintains a 40% ownership interest in Orano.

Former activities

Areva once operated throughout the full nuclear energy supply chain, encompassing uranium mining, chemical processing, enrichment, fuel fabrication, reprocessing, engineering services, naval propulsion and reactor construction, waste treatment, recycling, stabilization, and decommissioning. The company also offered technological solutions in renewable energy. These operations were divided into five distinct business units.

Nuclear sector

The Mining Business Unit was responsible for uranium exploration, extraction, processing, and site rehabilitation after mine closures. With production sites located in Canada, Kazakhstan, and Niger and personnel spread across five continents, it employed 4,463 individuals by the end of 2013 and contributed 19% to Areva’s consolidated revenue. This unit has since been integrated into Orano.

The Front End Business Unit managed the conversion of uranium ore into nuclear fuel components, including the production of uranium hexafluoride, enrichment processes, and fuel assembly design. In 2013, it employed 8,555 staff members and generated 24% of total revenue. This segment also became part of Orano.

The Reactors and Services Business Unit focused on designing and constructing pressurized water reactors (PWRs) and boiling water reactors (BWRs), along with providing nuclear reactor maintenance services. It also developed naval propulsion systems and research reactors through its subsidiary Technicatome. Employing 15,592 people in 2013, this division accounted for 36% of Areva’s revenue and has now been incorporated into Framatome.

The Back End Business Unit specialized in recycling spent nuclear fuel for reuse in reactors, managing storage and transportation of radioactive materials, and performing site cleanup operations. With a workforce of 11,583 in 2013 generating 19% of revenue, this unit is now part of Orano. In 2017, it introduced the NUHOMS Matrix system—an advanced dry cask storage solution designed for high-density spent fuel containment.

Renewable energy sector

In 2006, Areva created a global renewable energies business unit to broaden its portfolio in clean energy technologies. This division concentrated on concentrated solar power (CSP), offshore wind energy, biomass power generation, as well as hydrogen storage and distribution systems. The company developed biomass power plants globally with a combined installed capacity of approximately 2.5 GWe. Projects were undertaken in countries such as Brazil, Chile, Germany, the Netherlands, India, and Thailand. Its subsidiary Areva Renewables Brazil specialized in biomass facilities utilizing bagasse—the fibrous residue from sugar cane processing. In the United States, Areva collaborated with Duke Energy to construct and operate biomass plants with a total capacity of 55 MW fueled by wood waste.

Areva acquired Thermya technology for producing bio-coal through biomass torrefaction—a process converting biomass into a coal substitute suitable for thermal power generation and electricity production. The company also developed AdCub—a modular design concept for compact biomass power plants ranging from 3 to 6 MW—targeted at efficiently harnessing small-scale biomass resources across Europe. This innovation seeks to reduce customer expenses, shorten construction timelines, enhance multi-fuel compatibility, and improve plant availability.

Within hydrogen energy development, Areva engineered turnkey solutions integrating fuel cell-based electricity generation alongside hydrogen production via electrolysis. The company actively supported research initiatives through collaborations with industrial partners and national research organizations such as Agence Nationale de la Recherche as well as innovation clusters like Pôle Capenergies that focus on renewable energy technologies without greenhouse gas emissions.

Additional activities

Areva participated in the military technology sector, notably engineering the nuclear reactor utilized in the French Barracuda class submarine. One of its subsidiaries, Euriware, founded in 1991, focused on consulting and information technology services, employing approximately 2,200 individuals. Additionally, Areva maintained minority shareholdings in Safran (1.99%) and Suez Environnement (1.4%).

CERCA, an Areva-owned company responsible for manufacturing fuel for research reactors, has collaborated with the American corporation General Atomics on the TRIGA research reactor project since 1996. This partnership supports activities such as training, scientific research, and the production of radioisotopes.

Areva was previously affiliated as a corporate member of the Bruegel policy think tank.

2007 penalty

In January 2007, the European Commission imposed a €53 million fine on Areva due to its connection to an EU electricity market cartel involving 11 other firms including ABB, Alstom, and Siemens. This cartel operated from 1988 until 2004 and engaged in bid rigging, price fixing, project allocation, and confidential information exchange.

Areva's responsibility stemmed from acquiring a division of Alstom in January 2004 during the cartel's existence. The European Commission held both Areva and Alstom jointly accountable for the fine linked to this division. Prior to this acquisition, Areva was not involved in cartel conduct.

EU Competition Commissioner Neelie Kroes remarked that the commission had dismantled a cartel that defrauded public utilities and consumers over a span exceeding 16 years.

Libyan agreement

On 13 August 2007, Le Parisien reported that the civil nuclear cooperation deal between France and Libya, signed by President Nicolas Sarkozy, was not primarily about desalination as officially stated but centered on selling Libya an EPR reactor, with a contract value estimated at $3 billion. The article referenced Philippe Delaune from the CEA atomic agency, Areva’s principal shareholder. Following accusations linking this agreement to the release of Bulgarian nurses imprisoned in Libya, the French Socialist Party denounced it as "geopolitically irresponsible," while the German government also expressed criticism.

Bakouma attack

On 24 June 2012, Areva’s uranium facility in Bakouma, located in southeastern Central African Republic, was assaulted by an armed faction. Central African forces repelled the attack; however, assailants inflicted material damage and seized supplies. The military attributed this action to the Chadian rebel group known as the Popular Front for Recovery (FPR), led by Baba Ladde and active since 2008. Areva did not provide an immediate statement. The army continued operations aimed at eliminating remaining insurgents in the vicinity.

Niger incident

In May 2013, a suicide bombing linked to Al-Qaeda targeted Areva’s uranium mining site in Niger, resulting in one civilian fatality and damage to the facility. Full mining operations were restored by August of that year.

Tuareg community concerns

Greenpeace reported in November 2009 that radiation levels near two villages adjacent to Areva’s mining operations in Niger were dangerously elevated. Subsequently, in January 2014, Al Jazeera’s Orphans of the Sahara documentary series documented allegations that Areva’s mining activities contributed to illnesses and fatalities among the Tuareg population. In response, Areva stated it consistently submits environmental surveillance reports to Niger’s Office of Environmental Assessments and Impact Studies (BEEEI), which indicate no contamination surrounding its sites.

Sports sponsorship

To boost its brand recognition, Areva has been involved in sponsoring multiple sporting activities. In 2009, the company introduced Athlenergy.com, a digital platform dedicated to runners, and became a sponsor of the French Athletics Federation as well as the official partner of Meeting Areva, an annual athletics competition held at Stade de France. In May 2014, Athlenergy.com was renamed Arevarun. Areva also provides support for running events including the Paris Half Marathon and the Saintélyon night race.

Between 2008 and 2012, Areva was a sponsor of the German football club FC Nürnberg. The company also supported French participants in the America's Cup sailing competitions in 2002 with "Defi Areva" and in 2007 under the name "Areva Challenge." A significant incident occurred during the 2002 debut of "Defi Areva," when its yacht collided with a Greenpeace protesters’ dinghy, resulting in damage to the vessel.

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