PARIS, May 5 (Xinhua) -- The French FNEM-FO federation confirmed Friday in a statement that it had approved the launch of the third generation nuclear reactor EPR project built by French utility EDF.

    The FNEM-FO (Federation Nationale de l'Energie et des Mines) said that the decision of the French group Electricity of France (EDF) was an essential step in the renovation of nuclear plant, which does not emit greenhouse gas.

    "This competitive character will be of benefit to users and manufacturers and allow an advantage to our country at the moment when oil and gas prices seem to remain stubbornly high," it said.

    The EDF board decided Thursday to build the prototype of EPR (European pressurized-water reactor), the third generation of nuclear reactor, which will be set up in Flamanville in Normandy and will come into use in 2012.

    The EDF raised its estimate of the project's cost to 3.3 billion euros (4.19 billion dollars) from 3 billion euros (3.81 billion dollars), citing "current economic conditions".

    Italian utility Enel will contribute to 12.5 percent of the financing for the project and will get 12.5 percent of the power produced, French daily Le Figaro quoted EDF chief executive Pierre Gadonneix as saying.

    The plant is expected to use the EPR technology from French Areva company. Enditem