Nuclear: Engie and Belgian State announce terms for extension of 2 reactors

AFP, published Friday, July 22, 2022 at 4:34 p.m

The two Belgian nuclear reactors, whose lifespans must be extended by 10 years to boost energy independence, will be operated in a joint venture to be set up between the Belgian state and French group Engie, according to an “agreement in principle” jointly announced on Friday was given.

The two parties are vigorously negotiating the terms of this extension, announced in March, amid limited reliance on Russian hydrocarbons following the war in Ukraine.

They intend to “reach a final agreement by the end of the year and submit it to the European Commission,” Prime Minister Alexander De Croo and Energy Minister Tinne Van der Straeten said in a statement on Friday.

At the moment, with a view to this final agreement, the Belgian State and Engie have “agreed on the modalities for future action, the timetable and the framework for the negotiations”, they point out.

This framework stipulates that the Doel 4 and Tihange 3 reactors – which together represent 2 GW of nuclear capacity – after being shut down for overhaul from 2025, will restart “in November 2026”, subject to the approval of the safety authorities.

They will be managed by “a new company to be created”, presented on the Belgian side as “a stable and sustainable structure in which the Belgian State and Engie share both the risks and the benefits”.

It is “a new entity dedicated up to 50/50 to the two entities with a participation of the Belgian State and Electrabel (Belgian subsidiary of Engie, ed.)”, specifies the French group in a press release .

On March 18, the Belgian government announced its decision to postpone the full phase-out of nuclear power, planned for 2025, by ten years.

The Engie group, which assessed this late announcement, had made it clear to the Belgian state for four months that it wanted a split in the bill for the operation of two of the seven reactors it operates until 2035.

Engie still speaks of the “potential expansion of two nuclear blocks” and states that he has signed “a non-binding declaration of intent” with the Belgian state about its feasibility.

The operator should certainly bear the bill for the subsequent dismantling of the plants, but Engie speaks of a “cap” on the costs for the disposal of waste and highly radioactive spent fuel elements, which has already given rise to criticism, and fears no additional costs to be borne by the operator Belgian taxpayer.

These waste management costs “will be determined after a study, at the end of which discussions will begin about an + upper limit + (or upper limit, editor’s note) and a risk premium to be defined,” Mr. De Croo indicated to Ms. Van der streets.

For the Prime Minister, this agreement with Engie is “a crucial step” that “brings stability in very, very turbulent times”.

“It is our concern to guarantee our energy independence”, the need for which was made clear by the war in Ukraine. “It is a question of national security”, emphasized the energy minister during an emergency conference.

The promise of a phasing out of nuclear power has been enshrined in Belgian law since 2003, and not doing so was a backlash for the Environment Party (Ecolo-Groen), partner in Mr De Croo’s coalition, who took office on October 1, 2020 .

The government agreement at the time reinforced this goal of shutting down the country’s seven power plants by 2025.

According to Engie, a first reactor (Doel 3) must be finally shut down at the end of September, a second (Tihange 2) on February 1, 2023 and three more gradually by 2025.