FRANK LEWIS

PDT Staff Writer

PIKETON -- U.S. Energy Secretary Steven Chu announced today that the Obama Administration reached a major milestone in its efforts to secure an advanced domestic uranium enrichment capability for national security purposes. The Energy Department, USEC Inc. and American Centrifuge Demonstration, LLC, have signed a set of agreements that will enable the research, development and demonstration (RD&D) project at the American Centrifuge Plant (ACP) in Piketon, by moving forward with an up to $350 million cooperative effort.

DOE will provide 80 percent, or $280 million, and USEC 20 percent, or $70 million.

“Today, after months of hard work, I am pleased to announce that the Obama Administration has reached a major milestone in our efforts to advance the technology at the American Centrifuge Plant and strengthen U.S. national security,” Secretary Chu said. “Under the new agreement, we will be able to move forward with this critical research, development and demonstration effort while ensuring strong protections for the American taxpayers.”

USEC and DOE will initially provide $110 million in cost-shared funding for the program. This is intended to last through the end of November. DOE’s portion of the funding will come from taking the disposal obligation for a quantity of depleted uranium tails from USEC, releasing $87.7 million in cash for use in the RD&D program that USEC had previously committed as security for future tails disposition obligations.

“Our agreements reflect the importance of this U.S. technology to our national security and will validate the readiness of the American Centrifuge technology for commercial deployment,” John K. Welch, USEC president and CEO, said. “Over the last several months, we have been preparing our demonstration facility for installation of a full-scale commercial cascade with related plant infrastructure. With this RD&D agreement in place, we will move rapidly to build additional AC100 machines and related support systems to complete the demonstration cascade. The program will demonstrate the American Centrifuge technology as the next generation of U.S. enrichment technology that is essential to meet our nation’s future national security requirements.”

Welch said upon completion by the end of 2013, the RD&D program will fully demonstrate that the American Centrifuge technology is ready for commercial deployment.

Chu said The RD&D at ACP will be managed under a new enhanced governance structure that strengthens the roles of other project partners such as Babcock and Wilcox (B&W) and Toshiba Corporation, which will provide additional project management support and personnel for the program.

Portsmouth developer Jeff Albrecht sees an increased role by USEC’s financial partners as an important ingredient in bringing the deal to fruition.

“There’s an increased involvement of Babcock & Wilcox and Toshiba, and that is what the DOE has wanted all along. And that’s what USEC has fought,” Albrecht said. “So USEC has finally given in. So DOE has got the involvement of two very very financially strong, very capable corporations. And the federal government is taking ownership of the centrifuges. So, therefore, even if something happens to USEC, the project can continue.”

Albrecht also credited local involvement.

“It’s our calls, and the fine people from Pike County that have been involved, and the Commissioners and all the people who have put pressure on them,” Albrecht said. “I think it’s the public voice that has made this happen. So I’m proud to say we were all part of the successful effort. Our voices were heard in Washington DC.”

Frank Lewis may be reached at 740-353-3101, ext. 232, or at flewis@heartlandpublications.com