In a significant move reflecting France’s commitment to energy transition and economic revitalization, the Gardanne biomass power plant in Bouches-du-Rhône is set to resume operations in January 2025. This decision follows an €800 million agreement between the French government and GazelEnergie, a subsidiary of Czech billionaire Daniel Křetínský’s EPH group. The deal ensures the purchase of electricity from the plant at above-market rates over an eight-year period, aiming to secure energy supply and preserve employment in the region.
A Strategic Shift in Energy Policy
The Gardanne plant, once a coal-fired facility, underwent a transformation to biomass energy production over a decade ago. Despite substantial investments, the plant faced operational challenges, leading to its shutdown in late 2023. The recent agreement marks a strategic shift, with the government providing financial support to ensure the plant’s viability and contribution to the national energy mix.
Deputy Minister for Energy Olga Givernet emphasized the plant’s role in the broader context of France’s energy transition, stating that the facility will supply 6% of the electricity consumed in the Provence-Alpes-Côte d’Azur region. The plant’s capacity of 150 megawatts and its operation for 4,000 hours annually are central to this contribution.
Economic Implications and Employment
The agreement is expected to have significant economic implications for the region. It aims to preserve over 90 direct jobs at the plant and approximately 500 indirect jobs linked to the biomass supply chain and related services. Local union representatives have expressed cautious optimism, acknowledging the importance of job preservation while seeking clarity on the long-term sustainability of the plant’s operations.
However, the financial terms of the deal have sparked debate. The agreed-upon purchase price of electricity, ranging between €250 and €260 per megawatt-hour, is notably higher than current market rates. Critics argue that such subsidies may not represent the most efficient use of public funds, especially when alternative renewable energy sources could be developed at lower costs.
Environmental Considerations and Legal Challenges
The environmental impact of the Gardanne plant has been a point of contention. Environmental groups have raised concerns about the sustainability of sourcing 850,000 tons of biomass annually, primarily wood, and the potential effects on local forests and biodiversity. In response to legal challenges, the Council of State mandated a comprehensive environmental impact assessment, focusing on the indirect effects of biomass sourcing.
GazelEnergie has committed to conducting the required studies and asserts that the plant’s carbon footprint has been significantly reduced compared to its coal-fired operations. The company highlights that the biomass used is certified as sustainable, aligning with France’s environmental regulations.
Balancing Energy Transition and Economic Realities
The revival of the Gardanne biomass plant underscores the complexities of transitioning to renewable energy sources while addressing economic and employment concerns. The government’s support reflects a balancing act between environmental objectives and the need to maintain industrial activity and jobs in the region.
As France progresses towards its 2030 climate goals, the Gardanne case serves as a microcosm of the broader challenges faced in achieving a sustainable and equitable energy transition. The outcomes of the ongoing environmental assessments and the plant’s operational performance in the coming years will be critical in shaping future energy policies and investments.