Areva, Duke in biomass joint venture

Paris-based Areva and Charlotte, N.C.'s Duke Energy (NYSE: DUK) announced plans today to jointly develop biomass power plants in the U.S.

Areva, primarily a nuclear power developer, and Duke Energy, an electric utility, have formed a joint venture called Adage, with Areva designing and building the biomass plants and a unit of Duke Energy managing operations.

Anne Lauvergeon, CEO of Areva, said her company has experience in the biomass sector, having designed and built more than 100 biopower facilities in Europe, Asia and South America with a capacity of more than 2,500 megawatts.

"We are delighted to partner with Duke Energy, which has a growing portfolio of renewable assets throughout the U.S. market and tremendous experience in operating power plants," she said.

The biomass power plants will use wood waste to produce electricity. Areva is developing a 50 MW design for the joint venture, and plans to maximize standardization and take advantage of a fleet approach.

The companies said a 50 MW Adage biomass plant would provide electricity for approximately 40,000 homes. Areva and Duke said the new venture will have arrangements with suppliers for the use of wood wastes such as residuals from forestry operations within a 50-mile radius around the biomass power plant.

The Adage venture will be headquartered in Chadds Ford, Penn.