Areva to sign nuke, solar deal with Saudi group
Riyadh, January 24, 2011
Top French nuclear reactor maker Areva is set to sign a partnership agreement with Saudi Arabia's Binladin Group for nuclear and solar energy, its chief executive said.
'We think that on solar thermal in Saudi Arabia there's an important market and we are partnering with Saudi Binladin Group to develop this,' Anne Lauvergeon said, without giving specific figures.
Areva is 90 per cent-controlled by the French government through direct and indirect holdings.
Top oil exporter Saudi Arabia wants to cut fossil fuel use within the next several decades, it said at an industry event where nuclear reactor maker Areva is set to sign a major deal with a Saudi partner.
Saudi Arabia wants to cut domestic oil consumption within the next several decades as it diversifies its energy mix including nuclear, Hashim Yamani, president of the King Abdullah City for Atomic and Renewables Energy, told reporters.
'You want to have an energy mix to save oil, and this oil we can leverage prices so we can sell it abroad to build these facilities,' Yamani said.
'Nuclear would be adequate for the base load, we'll use renewables to add more capacity, there are some variations -- gas and oil will have to continue to help,' he said.
Total Saudi power demand is expected to triple to 120 gigawatts (GW) by 2050 from around 40 GW in 2010, said Yamani.
'Nuclear and renewable energy will reduce dependence on fossil fuels by 2050,' Yamani said, adding that nuclear and renewable energy would free up more oil for exports.
'Saudi will need to invest upfront in nuclear energy, but the oil saved will contribute significantly to the costs.'
Given the high costs of developing nuclear energy, one rule of thumb in the industry has been that nuclear becomes a viable proposition when oil is $90 per barrel, where current prices hover around for US crude.
In 2010, Saudi consumed 3.4 million barrels per day of oil equivalent, Yamani said, but declined to comment on when the first nuclear power plant would be built. By 2028, Saudi Arabia would be consuming more than eight million boepd, he added.
There has been high interest in nuclear power on the Arabian Pensinsula.
A consortium of EDF, Areva, GDF Suez and Total lost a $40 billion nuclear deal in Abu Dhabi to a South Korean consortium in December 2009. – Reuters
More Energy, Oil & Gas Stories
- Iranian oil import surges to one-year high
- Egypt will get oil aid from Arab states
- New technology for Bahrain's gas industry to save $300m
- Innovations key focus at Geoscience expo
- Iran seals gas export deal with Oman
- Total unit inks Elf Lubricants agreement
- Opec raises forecast for 2014 global oil demand
- Mitsui joins DME as trading member
- GE Power Conversion wins major SEC order
- Basra Light crude exports to rebound in April
- Aramco to produce unconventional gas for projects
- Alstom opens smart grid centre in Dubai
- Experts discuss key geosciences issues
- Egypt to permit factories to use coal for energy
- ME oil, gas transaction value up 15pc
- Victrex to showcase new product in Paris
- Aramco JV puts off giant refinery overhaul to 2015
- Libya threatens to bomb N Korean tanker
- Bahrain 'producing 850MW of surplus power'
- 2,000 experts for Bahrain geosciences summit
- Libyan rebels start oil exports, bypassing govt
- Dubai drilling company set for London IPO
- Opec output soars on higher Iraq exports
- S Korea to pay Iran $550m under nuke deal
- Qatar LPG exports will stay unchanged till 2018
- $14bn Bahrain energy sector focus for summit
- Iraq now world's fastest-growing oil exporter
- Old IT systems pose risk to oil firms
- Thomson Reuters adds commodity monitoring tool
- Oil below $90 to hit GCC economies