Orano has secured a 400 million euro loan from the European Investment Bank to enhance its uranium enrichment capacity at the Georges Besse II facility in France, part of a 1.7 billion euro investment. This financing revives the EIB’s support for French nuclear energy after a hiatus since 2008 and aims to bolster European energy independence amidst rising geopolitical tensions. The loan reflects a renewed focus on nuclear energy as a low-carbon solution, contributing to the EU’s climate goals.
Orano Secures 400 Million Euro Loan to Boost Enrichment Capacity
Orano, the French specialist in the uranium cycle and formerly known as Areva, announced on Monday its successful acquisition of a 400 million euro loan from the European Investment Bank (EIB). This significant funding marks a pivotal moment for the company as it re-enters the French nuclear sector.
Investing in Nuclear Energy: A Step Towards Independence
The loan, which spans approximately 25 years, will contribute to the expansion of the Georges Besse II enrichment facility located in Tricastin, southern France. This project represents a total investment of 1.7 billion euros.
Approved by a majority of the EIB’s board of directors, this financing comes at a time when the topic of nuclear financing remains contentious in certain EU nations, such as Germany, which has expressed opposition to it. The funding is among the largest ever allocated by the EIB for an industrial initiative.
This loan also signals a renewed commitment from the EIB to French nuclear energy, as it had not financed such projects since supporting Areva back in 2008. Following the Fukushima disaster in 2011, the EIB paused its nuclear sector activities.
The landscape shifted after Russia’s invasion of Ukraine in February 2022, underscoring the urgency to lessen reliance on Russian state-owned Rosatom for nuclear fuel cycles in France and other Western nations, including the United States.
Uranium enrichment plays a crucial role in producing fuel for nuclear power plants. As interest in nuclear energy resurges, this market is primarily led by Rosatom, which commands a 43% share, followed by the European consortium Urenco at 31%, and the Chinese CNNC catering to its domestic market, while Orano holds a 12% market share.
Ambroise Fayolle, the EIB’s vice-president, emphasized the importance of this funding, stating that it ‘contributes to European energy independence.’ He also highlighted the necessity for decarbonized energy solutions to help the EU achieve its ambitious climate neutrality objectives by 2050.
Notably, the EIB allocates two-thirds of its investments toward energy transition and climate change adaptation initiatives. Nuclear energy is eligible for EIB financing under a policy established in 2013, which remains unchallenged.
The EIB supports financing in three key areas: facility safety, fuel cycle, and research and development. For instance, the EIB recently funded a nuclear safety project in Romania. However, it has yet to finance new reactor projects, although Paris is advocating for the bank to back its initiative to construct six EPR2 reactors.
In February 2023, President Emmanuel Macron called for the EIB to finance future nuclear programs as part of broader investments in low-carbon technology solutions with minimal environmental impact.
Orano is engaged in the entire uranium fuel cycle, encompassing the mining of natural uranium—primarily sourced from Canada and Kazakhstan—along with its transformation, enrichment, and recycling processes.