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Nuclear: French Utility is Banking on Nuke Growth in U.S.

French utility EdF roughly doubled its ownership stake in Constellation Energy to 9.51 percent at an estimate cost of a half-billion dollars. Is EdF counting on an increase in U.S. support for nuclear following the elections?

EdF and Constellation Energy set up Unistar Nuclear in 2007 to build four European Pressurized Reactors in the U.S. UniStar submitted its first Combined License Application for a new reactor adjacent to Constellation Energy’s Calvert Cliffs plant in Maryland, but no permit has been issued.

"This increase in EdF's stake in Constellation Energy is a reflection of the group's commitment to the revival of nuclear generation in the United States," EdF Chairman Pierre Gadonneix said in a statement provided to AP.

Constellation owns over 3,800 megawatts of nuclear capacity at three sites in NY and MD. Each new EPR reactor would generate as much as 1,600 megawatts of electricity.

The EPR reactors, engineered by French state-controlled Areva, could eventually replace older designs. Areva is no stranger to the American political system. Areva hired Spencer Abraham, former Energy Secretary and Bush appointee, in early 2006. Abraham had the job of "supporting Areva's business expansion in North America." Areva won two Energy Department contracts -- one at Hanford and one at Yucca Mountain -- while Mr. Abraham served as secretary.

Crews broke ground two weeks ago for a new EPR in China. Others are under construction in Finland and France.

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Update: "Baltimore-based Constellation Energy has opted to hook up with Electricite de France SA, selling half of its lucrative nuclear energy business to the French state-controlled nuclear powerhouse for $4.5 billion. The deal allows Constellation Energy to remain an independent company while deepening a relationship with EdF in which the two already have a joint venture to develop new nuclear operations in the U.S."

AP story:

http://seattletimes.nwsource.com/html/businesstechnology/2008530461_apconstellationenergybuyout.html

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