EDF announced on Monday, for the first time, the “signing of green bank loans” dedicated to financing the maintenance and extension of the lifespan of its existing nuclear fleet, amounting to “approximately 5.8 billion euros.”
These loans, with repayment spread over a period of three to five years, “have been concluded with major international banks including BNP Paribas, Bank of America, Crédit Agricole CIB, ING, Natixis CIB, Société Générale, Wells Fargo,” EDF detailed in a statement.
It is “the first time” that EDF has subscribed to “green loans,” a category that corresponds to a European classification, to finance its nuclear activities, according to AFP. The funds will finance “investments in existing nuclear reactors in France as part of their lifespan extension,” which EDF aims to extend to 60 years or more.
These investments are included in EDF’s “Green Financing Framework,” a framework defining the activities of the French energy company (renewable or nuclear electricity, energy efficiency, etc.) compatible with the European green taxonomy.
This classification system was established by the EU to mobilize private investments towards economic activities considered environmentally sustainable.
In July 2022, the European Parliament officially included nuclear and gas among the “sustainable” energies contributing to the fight against climate change, a controversial decision that angered environmentalists.
French reactors were originally authorized without a limit on operating lifespan, but EDF had initially considered a lifespan of 40 years.
In 2015, EDF launched the “grand carénage,” a vast program to modernize and extend the life of its power plants beyond 40 years, with a cumulative cost estimated at 66 billion euros for its first (2015-2021) and second phases (2022-2028), according to an estimate provided by EDF in March 2023.
While French plants are on average between 30 and 40 years old, the government aims to build up to 14 new reactors and extend those that can be extended as much as possible as part of its plan to boost decarbonized electricity production, allowing France to move away from fossil fuels responsible for global warming.
Faced with colossal investment needs to implement this program, EDF is burdened with a staggering debt of 54.4 billion euros.