Orano Plans U.S. Uranium Enrichment Plant

PARIS (Reuters) – French nuclear fuel specialist Orano could begin enriching uranium at a new plant in the United States in the early 2030s, an executive said on Friday, boosting the company’s share of the global market as the U.S. weans itself off Russian supplies.

The state-owned company announced on Wednesday its plans to build a new plant in Tennessee, shortly after President Joe Biden’s administration signed legislation to end U.S. dependence on Russia’s Rosatom.

Orano is among a select few companies with fuel enrichment capabilities, and demand is surging as new markets seek nuclear power for cleaner energy.

The company is already planning a 1.7 billion euro ($1.9 billion) expansion of its enrichment plant in southern France, aiming to increase capacity by more than 30%, or 2.5 million Separative Work Units (SWU), partially to meet U.S. client demand.

An SWU is a measurement of the uranium enrichment process, proportional to the input and mass produced.

Building a facility in the U.S. will enable Orano to access up to $2.7 billion of U.S. funding for domestic uranium projects, according to Francois Lurin, head of the company’s chemistry enrichment division.

The Oak Ridge, Tennessee plant is projected to produce several million SWUs but will adjust to customer requirements and necessary enrichment levels.

Additionally, the facility may produce HALEU-type fuels, enriched to higher levels than today’s commercial nuclear fuel, for next-gen large and small nuclear reactors, Lurin mentioned.

Investment decisions regarding Oak Ridge should commence next year, once the company secures long-term commitments from customers.

Orano also needs to obtain licensing from the U.S. Nuclear Regulatory Commission (NRC) and gain federal support.

“If everything goes according to plan – starting work, obtaining financial backing from the American government, securing firm orders from customers, and successful exchanges with the NRC – we can envision production in the early 2030s,” he stated.

($1 = 0.9010 euros)