Tennessee Governor Bill Lee announced that Orano USA has selected Oak Ridge, Tennessee, as the preferred site to construct a new, multi-billion-dollar, state-of-the-art centrifuge uranium enrichment facility. The multi-structure commercial production site will cover approximately 750,000 square feet, making it one of the largest in North America. It is expected to create more than 300 new direct jobs in Roane County and will be based on Orano’s enrichment facility in Tricastin, France.

Orano has its global headquarters in Paris, with its US headquarters in Bethesda, Maryland. It will be the second company to locate in Tennessee utilising the Nuclear Energy Fund, which assists nuclear energy-related businesses choosing to relocate or expand in state and supports the state’s universities and research institutions in further developing their nuclear education programmes. Governor Lee, in partnership with the Tennessee General Assembly, established the fund in the state’s Fiscal Year 2023-2024 budget. An additional $10m was appropriated in the state’s budget in Fiscal Year 2024-2025.

Lee said the fund was established to expand the state’s nuclear ecosystem. “Tennessee is the number one state for nuclear energy companies to invest and thrive, and we are proud to partner with Orano to lead America’s energy independence and drive continued economic growth and greater opportunity for Tennesseans,” he said.

The Orano project was vetted and recommend by the Education & Workforce subgroup, part of the 22-member Tennessee Nuclear Energy Advisory Council that includes members of the Lee administration, the Tennessee General Assembly, Tennessee’s Congressional Delegation and key nuclear industry stakeholders.

“Today we are announcing a significant milestone for the future of reliable and clean energy in our state thanks to Orano’s selection of Oak Ridge as the preferred site to locate one of North America’s largest uranium enrichment centres,” said Stuart C McWhorter. Commissioner at the Tennessee Department of Economic & Community Development (TNECD). “With assets like Oak Ridge National Laboratory and the city’s rich history in the nuclear industry, Oak Ridge is primed to support Orano’s efforts, and we look forward to the future opportunities this partnership will create for both Orano and Tennessee.”

Jean-Luc Palayer, CEO & President of Orano USA said: “We’re already preparing for our next required steps, including securing available Federal support and customer commitments, obtaining an NRC licence and Orano’s Board approval, but today we celebrate this major milestone towards bringing a new enrichment facility online to help meet our country’s need for an increased, secure domestic nuclear fuel supply.”

Jeff Lyash, President & CEO of the Tennessee Valley Authority (TVA) power utility said TVA “believes nuclear energy must be a part of our regional and national drive toward a clean energy future”. He added: “East Tennessee’s status as a nuclear technologies incubator is made possible through partnerships between TVA, the Department of Energy, state and local economic development agencies, elected officials and innovative companies like Orano. Working together, we will advance nuclear technologies that are crucial to supporting not only energy security, but also national security.”

Earlier, France’s Areva, which subsequently became Orano, planned to build an enrichment facility at Eagle Rock in Idaho and won a conditional commitment for a $2bn loan guarantee from the Department of Energy (DOE) in 2010. Areva submitted a licence application to the Nuclear Regulatory Commission (NRC) in 2008 to build the $3bn 3.3m SWU (separative work unit) gas centrifuge facility starting in 2011 for operation as early as 2014. However, Areva suspended the project in 2011 in face of financial difficulties and NRC terminated the licence.