UPDATE 1-E.ON CEO eyes control of 3rd French EPR reactor

Tue Jul 7, 2009 9:13am EDT
 
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* Eyes majority stake, operational lead in France's 3rd EPR

* Says discussing cooperation in Flamanville, Penly with EDF

(Adds details, E.ON quotes, background)

PARIS, July 7 (Reuters) - Germany's E.ON EONG.DE staked a claim for control of France's third new-generation nuclear reactor if there was to be one, saying this would help open up a market so far dominated by former monopoly EDF (EDF.PA).

"A cooperation usually goes well if both partners are at an equal position, and since we are not the smallest utility operator we are not terribly keen to receive just a minority position in such a project," Chief Executive Wulf Bernotat told a press conference.

Asked whether he was considering a majority stake in a third EPR (European Pressurised Reactor) project yet to be decided upon by the government, Bernotat said:

"That is a possibility or an operatorship... It would be good for the competitive situation in France that a company like E.ON could play a strong role in a 3rd project..."

French power group EDF, which operates 58 nuclear reactors in 19 nuclear plants in France, is building an EPR in Flamanville and is planning a second one in Penly.

EDF said in May it was open to signing up other partners for its nuclear projects, which can go to just 50 percent of the project's capital while it keeps operational control.

Italy's Enel (ENEI.MI) has a 12.5 percent stake in Flamanville, while EDF's domestic rival GDF Suez (GSZ.PA) and oil major Total (TOTF.PA) jointly own 33.3 percent of Penly.

GDF Suez had hoped to get the operational control of Penly but ended up with a minority stake in the project. The group born of the merger of Suez and state-controlled Gaz de France, has already said it wanted a majority stake in an EPR project.

Bernotat said E.ON was discussing with EDF a possible cooperation in both Flamanville and Penly.

"We are in talks for a potential cooperation in Flamanville, on the project management side, for a similar arrangement to that Enel got. There is also a possibility for joining a second reactor in Penly but we have not yet decided."

"Nothing has been agreed yet. There are some talks and there are some encouragements from the French government," he added.

Bernotat said E.ON expected nuclear power to represent 11 percent of the group's energy mix by 2030.

For E.ON's comments on EU anti-trust probe, click on [ID:nL7179147]

For interview of E.ON's head click on [ID:nWEA9972]

(Reporting by Marie Maitre; editing by Elaine Hardcastle)

 

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