Orano to Build U.S. Uranium Enrichment Plant in Oak Ridge, Tennessee

France's Orano has chosen Oak Ridge, Tennessee as a site for a U.S. uranium enrichment plant. This move aligns with President Biden's legislation to reduce dependency on Russian uranium. The plant, aiming to enhance domestic nuclear fuel supply, will create over 300 jobs and require federal approval.

France's state-owned nuclear fuel company Orano has chosen Oak Ridge, Tennessee, as the preferred site for its new multi-billion dollar U.S. uranium enrichment plant. This development follows President Joe Biden's legislative push to end dependency on Russian uranium, the world's primary source of enriched uranium. The new law bans Russian enriched uranium imports and allocates $2.7 billion for domestic uranium projects.

Jean-Luc Palayer, CEO and president of Orano USA, announced that the company will now focus on securing federal support, customer commitments, and necessary licenses from the Nuclear Regulatory Commission. Palayer emphasized, "Today we celebrate this major milestone towards bringing a new enrichment facility online to help meet our country's need for a secure domestic nuclear fuel supply." Orano USA is headquartered in Bethesda, Maryland.

The enrichment plant is anticipated to create more than 300 jobs in Tennessee and is backed by Tennessee's Nuclear Energy Fund, currently valued at $60 million. Officials withheld specific details on the overall project cost.

The planned facility is not Orano's first U.S. venture. The company previously planned a $2 billion enrichment plant in Idaho, which was abandoned following the Fukushima nuclear disaster. Recently, Orano has boosted capacity at its French facility to mitigate risks related to potential Russian supply disruptions, especially as Orano sources raw uranium from Canada, Kazakhstan, and Niger. Significant competitors include Rosatom and Urenco, with the former supplying 30% of the West's enriched uranium. Other potential U.S. suppliers include Centrus Energy, Urenco, and Global Laser Enrichment, LLC.

In light of current dependencies, the July U.S. waivers on Russian uranium imports aim to prevent reactor operation disruptions. However, these exemptions will expire in 2028, necessitating alternative sources for enriched uranium by then.

(With inputs from agencies.)