THE ENERGY INDUSTRY TIMES - FEBRUARY 2018
Companies News 9
Brookfield secures
Westinghouse future
Brookfield Business Partners says it
hopes to leverage Westinghouse’s
strong global market position and diversified
customer base after sealing a deal
to buy the nuclear firm from Toshiba.
Brookfield, a business and industrial
company, signed an agreement with
Toshiba in early January to buy Westinghouse
for $4.6 billion.
The deal should bring an end to the
financial woes that brought Westinghouse
to bankruptcy in 2017.
Brookfield says it will fund the acquisition
with approximately $1 billion
of equity, approximately $3 billion of
long-term debt financing and the balance
by the assumption of certain pension,
environmental and other operating
obligations.
“Westinghouse is a high-quality
business that has established itself as
a leader in its field, with a long-term
customer base and a reputation for innovation,”
said Cyrus Madon, CEO of
Brookfield Business Partners. “We
look forward to bringing our significant
expertise and reputation as a
long-term owner and operator of
critical infrastructure in the US and
globally, as well as our deep facilities
management capabilities, to enhance
the company’s position as a leading
global infrastructure services provider
to the power generation industry.”
Westinghouse’s bankruptcy was
caused by long delays and cost overruns
at two US nuclear power plant
projects. Its position as the largest service
provider to the world’s nuclear
power facilities, its expertise and ability
for technology innovation are
among the company’s strengths,
Brookfield says.
“Brookfield’s acquisition of Westinghouse
reaffirms our position as the
leader of the global nuclear industry,”
said Westinghouse President & CEO
José Emeterio Gutiérrez. “Our transformation
and strategic restructuring
process is creating a stronger, stable,
and more streamlined global Westinghouse
business, for the benefit of our
customers and employees.”
Brookfield’s acquisition of Westinghouse
is expected to close in the third
quarter of 2018, subject to bankruptcy
court approval and regulatory approvals.
Throughout the process, Westinghouse
will continue to operate in the
ordinary course of business under its
existing senior management, the firm
says.
In January, South Carolina-based
Scana, the company leading development
of the VC Summer nuclear power
plant project, accepted a $14.6 billion
takeover deal from Dominion
Energy.
Scana scrapped the VC Summer
nuclear project in July 2017 after Westinghouse
declared bankruptcy.
A second Westinghouse nuclear project
in the USA – Vogtle Units 3 & 4
– has been given regulatory approval
to go ahead.
Shell has signed a deal to purchase UK
energy provider First Utility in a move
designed to boost the oil giant’s green
credentials.
The company will buy 100 per cent
of First Utility, which provides 825 000
homes in the UK with energy and
broadband services, and says that the
move will enable it to “enter a new part
of the energy market”.
Shell’s CEO Ben van Beurden announced
in late 2017 that the company
intended to ramp up investment in new
energy businesses towards $2 billion
annually.
The strategy is designed to reduce
the company’s carbon emissions and
boost its presence in new and innovative
energy markets. It says that its
European gas and power marketing
and trading business will continue to
supply wholesale gas and electricity
to energy retailers in the UK and
Europe, including First Utility.
In 2015, a licensing agreement between
Shell Brands International and
First Utility enabled them to operate in
the German household energy sector
under the Shell brand.
“We believe that the time is right to
build upon our strong relationship with
First Utility by investing to grow its
business,” said Mark Gainsborough,
Shell’s Executive Vice President of
New Energies.
“The supply and demand of residential
energy is rapidly changing, driven
by new technologies that enable householders
to better manage their energy
use, and the need for a low-carbon energy
system,” said Gainsborough.
“This combination will enable Shell to
enter a new part of the energy market
in the UK and to improve choice for
customers by delivering innovative
services at competitive prices.”
n EDF, MHI and Assystem complete share deals
n Framatome expands I&C business
AES and Siemens have started their
collaboration in the battery energy
storage business by launching Fluence,
their new joint venture.
The two companies say that Fluence
will now embark on an “aggressive”
expansion strategy in the global energy
storage market, backed by the
financial support of the two parent
organisations.
It will supply the hardware for the
world’s largest lithium-ion batterybased
storage project, a 100 MW/400
MWh (4-hr duration) installation in
Long Beach, California, USA, and
has also announced plans to supply
India’s first grid-scale storage system,
a 10 MW installation for Tata Power-
DDL.
Fluence will combine the engineering,
product development, implementation
and services capabilities of AES
Energy Storage with Siemens’ energy
storage team.
It will also use Siemens’ global sales
force to market and sell Fluence energy
storage systems, including
Siestorage, Advancion, and the newest
Fluence platform, SunFlex Energy
Storage for solar PV.
Siân Crampsie
Framatome says that it will seek new
opportunities in the global nuclear energy
market as it embarks on a new
phase in its history.
Areva announced last month that it
had renamed its New NP subsidiary
Framatome and that it had completed
deals with EDF, Mitsubishi Heavy Industries
(MHI) and Assystem to sell its
shares in the company.
Framatome has also announced plans
to expand its instrumentation and control
(I&C) business through the acquisition
of Schneider Electric’s nuclear
automation business.
It has also signed a deal with China’s
CNNC for the development of a global
strategic cooperation.
Areva and EDF announced in December
2017 that they had signed a
definitive agreement for the sale of
New NP, with EDF acquiring 75.5 per
cent of the company. Assystem has
purchased a five per cent stake, and
MHI 19.5 per cent.
Framatome says that it will have an
internationally focused strategy of development
and industrial excellence,
building on its existing global fleet of
440 reactors in 31 countries, as well as
new capacity under development.
It also says that its recent asset sales
agreement with Schneider Electric
would support its business operations
and future plans. More than 80 safety
I&C systems have been installed by
Framatome on 44 reactors in 17 countries
across the world, and approximately
250 automation systems have
been installed or are being installed by
Schneider Electric.
“This is an exciting time of growth
for our company, and the acquisition
and partnership with Schneider Electric
build on our long history of providing
nuclear operators with both
digital and analogue I&C solutions,”
said Gary Mignogna, President and
CEO of Framatome Inc. “With this
acquisition, we will provide longterm
support for our customers’ systems
and serve as the original equipment
manufacturer for their I&C
upgrades and modernisations.”
Under its deal with CNNC, the two
companies will extend their cooperation
in nuclear fuel design, engineering
and services; enhance their collaboration
on digital instrumentation and
control for nuclear power plants; and
increase their cooperation in maintenance,
safety and operation upgrades
for in-service nuclear power plants.
MHI said in a statement that its
shareholding in Framatome would
establish a framework for cooperation
between MHI, Framatome and EDF,
and also support the sale of the ATMEA1
reactor.
MHI’s investment will also result in
the restructuring of ATMEA, which
was formed as a joint venture between
MHI and Areva NP.
Under the new structure, MHI and
EDF will own equal 50-50 shares in
ATMEA, with a special share held by
Framatome.
New NP was established under a restructuring
of Areva NP and comprises
the French firm’s nuclear power plant
equipment and systems manufacturing
business. EDF agreed to buy a majority
stake in the company in 2015 as part
of the restructuring and plans by the
French government to rescue Areva
with a €4.5 billion injection.
Framatome has 14 000 employees
worldwide and holds around 3500
patents covering some 680 inventions.
“Framatome possesses unique
know-how in an industry that today
is and will remain key for a low-carbon
energy mix,” said Bernard Fontana,
Chairman of the Managing
Board and Chief Executive Officer of
Framatome. “As we emerge from this
transition phase, I share their pride and
I want to thank them for all the work
they have accomplished."
He added: “Steeped in a rich heritage,
Framatome is today one of the
reference players in the nuclear sector
worldwide, benefiting from unparalleled
operating feedback. Our ambition
is delivering a level of industrial
excellence that is recognised by our
customers.”
n New Areva has now become Orano.
Refocused on nuclear materials development
and waste management,
Orano’s activities encompass mining,
conversion-enrichment, used fuel recycling,
nuclear logistics, dismantling
and engineering.
AES and
Siemens launch
Fluence battery
business
Areva
resurrects
Framatome name
Shell buys UK utility
firm