EDF, the French state-owned utility, is exploring options to raise capital for its North American and Brazilian renewable energy subsidiaries. This could include selling stakes of up to 50% in these businesses. The move is driven by EDF's new CEO, Bernard Fontana, who is seeking to secure funding for the construction of six new nuclear reactors.
Bloomberg News previously reported that EDF was contemplating a stake sale in its North American unit alone, which could generate around $2.32 billion (2 billion euros). EDF confirmed its consideration of bringing in partners to its subsidiaries, stating, "We are studying the possibility to open the capital of some of our subsidiaries to partners."
Fontana has indicated a strategic shift toward prioritizing domestic nuclear projects in France as the country aims to bolster its long-term electricity production. This focus on nuclear, alongside the potential renewable asset sales, is part of a broader effort to finance significant investments in France's aging fleet of 57 nuclear reactors and build new ones. EDF has also sought external financing for its two nuclear reactor projects in the UK.
This strategy comes after EDF incurred a $900 million impairment on its Atlantic Shores offshore wind farm joint venture with Shell, following a moratorium on new wind development in the U.S. under former President Donald Trump. Such decisions highlight the company's balancing act between renewable energy development and its core nuclear power ambitions, particularly in the face of changing regulatory and political landscapes. The potential stake sales are a direct response to the need for capital to fund EDF's nuclear expansion plans.
