France pledged 1 billion euros ($1.5 billion) to support next generation reactor design and said it would seek foreign capital to back its move to the forefront of nuclear energy expansion. The investment is part of a 35 billion-euro spending plan French President Nicolas Sarkozy unveiled on Monday aimed at improving France's competitiveness.
The new nuclear projects, dubbed fourth generation reactors, would recycle uranium and plutonium, creating less waste, he told a press conference. As concerns rise over dwindling oil supplies and the environmental hazards of global warming, nuclear energy, which produces almost no carbon dioxide, has come back into vogue. The French government, which owns majority stakes in both nuclear reactor maker Areva and utility giant EDF, is trying to position France as the market leader in designing and running these power plants.
"Do we need external partners? Yes, I can say so without taking the risk of predicting a decision. Why? Because it's an industry that is capital intensive," Sarkozy said. The cost of a European Pressurised Reactor - the type of nuclear plant France's reactor maker Areva is constructing in France, Finland and China - is between 5 and 6 billion euros, industry experts say.