Areva Eyes Alstom’s Contracts

Areva would be more interested in Alstom’s offshore wind contracts than its technology, writes Reuters.

Recently, Areva said it will consider acquiring Alstom’s wind energy business if the bid from the U.S.  company General Electric gets approved.

After making a bid of EUR 12.35 billion bid for Alstom’s energy arm last month, GE, under the French government’s pressure, said it was willing to sell Alstom’s wind unit to Areva, as well as to leave the nuclear business in French hands.

Both Areva and Alstom secured contracts under different consortiums for the development of offshore wind in France.

Alstom develops turbines with direct-drive technology that has less moving parts, and it is more expensive to fabricate comparing to Areva’s turbine which uses gearbox.

Sources familiar to this matter said that if Areva acquires Alstom’s offshore wind unit it “could perfectly well take over that contract and execute it with its turbines rather than the Alstom direct-drive models.”

On the other hand, EDF renewables, leader of the consortium which won 1.5GW offshore wind tender, does not prefer Alstom’s gearbox turbines at it considers them fragile.

In order to install Areva’s turbines instead of Alstom’s, new technical studies and public enquiries would be needed as the foundations planned for the development are not suitable for Areva’s turbines.