Chirac outlines French energy strategy, backs new nuclear plants

Paris (Platts)--5Jan2006

French president Jacques Chirac Thursday outlined France's energy
strategy for the next thirty years, and committed the country to build a new
model nuclear power reactor for a new generation of reactors by 2020.

     In a speech to trade unions and business leaders following the
Russia-Ukraine gas crisis, the president highlighted energy saving, greater
use of renewable energy and nuclear power and spoke of the need for a
Europe-wide energy policy.

     "Climate change and the 'after oil' era are the challenges of this new
century," Chirac said. "We will have to cut our greenhouse gas emissions by a
quarter by 2050, it's unavoidable. We have to learn progressively to do
without oil," he said.

     While France currently emits "40% less greenhouse gas per inhabitant than
the average in developed countries," it now has to speed up the implementation
of the energy choices set out in last July's energy orientation bill, he said.

     "We must first intensify our efforts to save energy in the home. And as a
priority in existing buildings, with the aim of cutting energy consumption by
a quarter by 2050," he said. A program has been launched that should allow
French people to save the equivalent of the annual output of two nuclear power
units, he said.

     "France has to cut back oil use and boost its consumption of biofuels,"
Chirac said. "We must reserve the use of oil for transport and chemicals and
develop as many substitutes as possible."

     BIOFUELS

     French biofuel output would be "multiplied by five" over the next two
years, he said. "By the end of 2007, cars used by state administrations (for
example police, schools, hospitals) will have to use biofuels for a third of
consumption," he said.

     Chirac said he wanted France's industrial innovation agency to
"contribute this year" to plans to develop clean coal power stations.

     But the country had to preserve its "superiority" in nuclear energy, he
said. "...we must take new initiatives: many countries are working on the new
generation of reactors for the years 2030-2040, which will produce less waste
and will better exploit fusion materials," he said.

     "I have decided to launch, from now on, the conception, with the CEA
energy atomic commission, a prototype fourth generation reactor which should
go into service by 2020," Chirac said. France would team up with any
industrial or international partners who wanted to take part, he added.

     The French president said it was "obvious" that energy policy transcended
national boarders. "It is at a European level that we must build an ambitious
energy policy. It cannot just be about opening the (energy) market to
competition." France plans to submit a "memorandum" on energy policy at
Europe's next Council of Ministers meeting, Chirac said.

		--Chris Eales, newsdesk@platts.com

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