Increase markets' knowledge: A new era for energy in the USA


US is having to cope with demographic growth at the same time as rising electricity consumption.

The country is now rebalancing its energy mix in an attempt to meet CO2 emission reduction commitments, at the same time as satisfying consumer demand. Renewables like solar power, wind power and biomass will make an increasingly important contribution to energy generation. For example, the US plans to double its wood biomass-fueled power generating capacity over the coming ten years.

Regarding nuclear energy, if nuclear power maintains its contribution at 20%, it will mean the construction of around thirty new plants over the next twenty years.

The Americans are often referred to in terms of superlatives, and the energy sector is no exception. The average American household consumes over 12,000 kWh per year, compared with around 8,000 kWh for a French household! In fact, the USA consumes a quarter of the entire world’s energy, and is responsible for 22% of global CO2 emissions. Half of the energy it consumes comes from coal, followed by 19% each for natural gas and nuclear power, and 8% for hydroelectric generation. Oil and renewables account for just 2% and 3% of demand respectively. But the Americans are faced with just the same challenges as everyone else on Earth: how can unprecedented hikes in energy prices, the forecast exhaustion of fossil fuels and the increasing demand for electricity be reconciled with the need to protect our environment? Experts estimate that electricity consumption will increase by 50% by 2025. The US energy industry in figures USA Nuclear power plants Click to enlarge  The world’s leading power generator, accounting for 23% of global capacity, the USA is the world’s Number 3 oil producer and Number 2 gas and coal producer.  The country generates 2/3 of its energy needs and imports the remaining 1/3.  Its nuclear power capacity totals 104 reactors, which together supply approximately 20% of the country’s electricity needs.  This level of nuclear generation avoids the atmospheric emission of over 700 million metric tons of CO2; a figure equivalent to 94% of the country’s automobile emissions. The revival of the American nuclear program and the ageing profile of its existing plants bode well for strong growth in the four divisions of AREVA Inc. (Front-End, Reactors and Services, Back-End and Transmission & Distribution). AREVA is already involved in a number of major industry projects, including the construction of a MOX fuel fabrication plant (MOX: a Mixed OXide of uranium and plutonium) in South Carolina, the clean-up and dismantling of underground chemical and radioactive waste storage tanks in Hanford, WA and the supply of nuclear fuel. Perhaps most importantly, the consortium formed by AREVA and Bechtel Power Corp. has signed a multi-year contract to provide design studies for the EPR™ reactor. 8 EPR projects are in progress with 6 US utilities. The first one should be in operations by 2015. The Group is also active in the biomass market through ADAGE, the company formed with Duke Energy to develop plants designed to generate electricity from wood debris coming from forest operations. Neutral in terms of CO2 emissions, each 50 MW ADAGE plant can supply enough electricity for around 40,000 homes. In order to cope with this proliferation of projects in America, AREVA has launched a major recruitment campaign to attract more engineers and technical consultants. AREVA: an important player in the US market Lynchburg site  In 2008, the Group generated revenue of $2,5 billion from the US energy sector. AREVA operates on 45 sites in 20 states, and employs more than 6,000 people.  In the nuclear industry, AREVA supplies nearly half of all replacement steam generators, pressurizers and pressure vessel covers.  AREVA controls 25% of the American market for PWR fuel  Almost 50% of all nuclear waste transportation is handled by TN International, an AREVA subsidiary. Upcoming EPR™ certification The US Nuclear Regulatory Commission is expected to grant certification for the EPR™ in 2011, following AREVA’s application of March 2008. This authorization is essential for the commissioning of any new reactor. The Construction and Operating License Application process (COLA) for electricity generators has been simplified and shortened, with the result that the authorization, construction and commissioning process will now take only nine years, rather than the previous fifteen. The first EPR™ site should therefore be up and running in 2015. Savannah River AREVA intends to strengthen its positions in the enrichment market, specifically through the construction of a uranium enrichment plant on American soil. It is in this context that AREVA is planning to build its own enrichment plant in Idaho: Eagle Rock. This plant will operate with gaseous centrifuge enrichment technology developed by Enrichment Technology Company (ETC), an AREVA subsidiary. It plant will provide enrichment services to U.S. nuclear plant operators. The plant will have a production capacity of 3 million SWU and should start operating in 2014, with full production capacity in 2017. AREVA also signed an agreement with Northrop Grumman to build a new manufacturing and engineering facility in Newport News, Va to manufacture heavy components for the U.S. EPR. The 300,000 square-foot facility represents a significant investment of more than $360 million in the U.S. commercial nuclear and manufacturing industries and will bring more than 500 skilled jobs to the Commonwealth of Virginia. AREVA Newport News will be the first full-scale manufacturing facility dedicated to supply heavy components, such as reactor vessels, steam generators and pressurizers to the U.S. nuclear energy industry. These components will supply the first new U.S. nuclear power plants to be built in 35 years.