The Areva energy storage programme, including the Areva Schneider Electric flow battery project, is in doubt following a profit warning and share price meltdown. Photo credit: FlowBox, KIC-InnoEnergy
The future of a major flow battery initiative appears in doubt after news emerged yesterday of financial troubles at Areva, the French energy giant.
The company, which in October signed an energy storage cooperation agreement with Schneider Electric, announced yesterday afternoon it was suspending its financial outlook for 2015 and 2016 because of problems with its nuclear reactor business.
Areva is currently in a legal wrangle with Teollisuuden Voima Oyj (TVO), a Finnish nuclear power company, over the construction of a new European Pressurized Reactor (EPR) at Olkiluoto in Western Finland.
The project has been subject to major cost and schedule over-runs, with both parties blaming the other for causing the problems. Yesterday Areva and its Olkiluoto consortium partner Siemens updated an ongoing claim against TVO, to €3.4bn.
Until the matter is resolved there can be little certainty over when Areva will be paid.
Meanwhile the company is also awaiting the renewal of nuclear operations in Japan, other new reactor projects, recycling export contracts and an uptick in “the still lacklustre market for installed base services,” according to yesterday’s press release.
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