Orano, a France-based nuclear and renewable energy company, has selected Oak Ridge, Tennessee, as the prime location for a new multi-billion-dollar uranium enrichment plant. This decision comes in the wake of U.S. legislation banning Russian uranium imports and allocating $2.7 billion for domestic projects. The move is a significant step towards reducing dependence on foreign sources of uranium.
On September 4, Tennessee officials, in collaboration with Orano USA, unveiled plans for the new facility. The Biden administration’s efforts to decrease reliance on Russian uranium have created an opportune environment for this project. The initiative is expected to bolster domestic uranium reserves and contribute to the growth of the nuclear industry in the region.
Governor Bill Lee of Tennessee disclosed that the upcoming plant will cover an expansive 750,000 square feet and is projected to create over 300 direct jobs in Roane County. This facility is poised to become one of the largest enrichment centers in North America. Governor Lee emphasized Tennessee’s attractiveness for nuclear energy investments, citing the state’s Nuclear Energy Fund, established to support such endeavors. An additional $10 million has been allocated in the state’s Fiscal Year 2024-2025 budget to further support nuclear initiatives.
“Our administration created the Nuclear Energy Fund in partnership with the Tennessee General Assembly to enhance the state’s nuclear ecosystem. In the last six months, we’ve announced four projects that will reinforce Tennessee’s position as a leader in safe, clean, and reliable energy for the future,” Governor Lee stated. Tennessee’s commitment to nuclear energy is evident in its collaboration with Orano to advance America’s energy independence and drive economic growth.
The Nuclear Energy Fund also facilitates the expansion of nuclear education programs at universities and research institutions. Orano is the second company to benefit from the state’s nuclear support programs, further solidifying Tennessee’s role in the nation’s clean energy future. The state’s leadership in nuclear energy is further solidified by the addition of this major nuclear fuel enrichment facility.
The project is supported by Oak Ridge National Laboratory, the TVA, and numerous other nuclear power plants that supply energy across the Southeastern region of the state. Tennessee’s strategic investments and expertise position it as a key player in advancing the nation’s quest for energy independence.
Orano, a prominent player in the global nuclear industry, specializes in providing safe and effective solutions for managing nuclear waste. The company is renowned for its uranium mining operations in Canada, Kazakhstan, and Niger, employing innovative and cost-efficient production methods. Beyond mining, Orano explores and develops new uranium sites and upgrades existing mines, enhancing its presence in the U.S. and supporting America’s energy independence.
Jean-Luc Palayer, CEO and President of Orano USA, expressed enthusiasm about the company’s collaboration with Tennessee, highlighting the state’s welcoming environment and established nuclear energy community in Oak Ridge. The Maryland facility, a top provider of technology and services for decommissioning closed nuclear facilities, plays a crucial role in managing used nuclear fuel and uranium services.
Orano is dedicated to reducing its greenhouse gas emissions, aiming for a 25% decrease in direct and indirect emissions by 2025 compared to 2019 levels. The company is focused on enhancing energy efficiency, phasing out fossil fuels, decarbonizing electricity at mining sites, and reducing process emissions to combat climate change. Sustainability is at the core of Orano’s operations, with a commitment to integrating eco-design principles and evaluating new business offers based on carbon considerations.
In its latest earnings report, Orano confirmed a stable revenue of around €4.8 billion and aims to maintain an EBITDA margin between 22% and 24%, with a positive net cash flow forecast for the year. The company’s comprehensive strategies and dedication to sustainability underscore its leading role in the global nuclear industry.
