The French government has injected €300 million ($330 million) into state-controlled uranium producer Orano. This capital infusion was announced on Thursday by both the company and the economy ministry.

The infusion saw Orano issue new shares which were purchased entirely by the French state, increasing its stake in the company to 90.3%. The remaining shareholders, Japan’s Nuclear Fuel Limited and Mitsubishi Heavy Industries, saw their stakes reduced from 5% to 4.8% each.

The investment is aimed at financing strategic projects, including the expansion of the Georges-Besse II enrichment plant in southern France. This extension is expected to increase Orano’s uranium enrichment capacity by one-third, a key step in a market currently dominated by Russia’s Rosatom, which holds a 43% share. Other major players include European group Urenco (31%), China’s CNNC, and Orano itself (12%).

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The infusion comes at a time when European countries are actively seeking to reduce their reliance on Russian energy sources, particularly following the 2022 invasion of Ukraine. Orano, formerly known as Areva, primarily enriches raw uranium from Canada and Kazakhstan, having recently ceased operations in Niger due to difficulties in reaching an agreement with the country’s new military leadership.

Orano’s statement emphasized that this capital injection reflects “a promising environment with new perspectives for nuclear energy in France and around the world to meet climate and sovereignty issues.”

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