Orano’s Bold Move: A Multi-Billion Dollar New Uranium Plant Set for Tennessee

The France-based nuclear and renewable energy company, Orano has picked Oak Ridge, Tennessee, as the top location for a new multi-billion-dollar uranium enrichment plant. Recently, U.S. legislation banned Russian uranium imports and allocated $2.7 billion for domestic projects.

On September 4, Tennessee officials and Orano USA announced new plans amid ongoing efforts by the Biden administration to decrease dependence on Russian uranium. Thus, this project is poised to give a solid boost to the domestic uranium reserves.

Government and Orano Partnership Bolsters Tennessee’s Nuclear Industry

Tennessee Governor Bill Lee revealed that the upcoming facility will span 750,000 square feet and generate over 300 direct jobs in Roane County. This makes it one of the largest enrichment centers in North America. Lee emphasized that Tennessee is a prime location for nuclear energy investments, highlighting the state’s Nuclear Energy Fund, which was set up to support such initiatives. An additional $10 million was appropriated in the state’s Fiscal Year 2024-2025 budget.

Governor Lee also remarked,

“Our administration created the Nuclear Energy Fund in partnership with the Tennessee General Assembly to support and expand the state’s nuclear ecosystem, and in the last six months, we’ve announced four projects that will further strengthen Tennessee’s position as a leader in safe, clean, and reliable energy for the future. 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.”

The fund also helps universities and research institutions expand their nuclear education programs. Additionally, Orano is the second company to benefit from the state’s nuclear support programs, further fortifying Tennessee’s role as a key player in the nation’s clean energy future.

The state is solidifying its leadership in nuclear energy by adding this major nuclear fuel enrichment facility. The press release also mentions that this project is backed by Oak Ridge National Laboratory, the TVA, and many other nuclear power plants supplying energy across the Southeast of the state. With its deep expertise and strategic investments, Tennessee is set to play a significant role in advancing the nation’s push for energy independence.

A MESSAGE FROM URANIUM ROYALY CORP.
[Disseminated on behalf of Uranium Royalty Corp.]

NASDAQ’s Sole Uranium Focused Royalty Company

The company is Uranium Royalty Corp., trading as (NASDAQ: UROY, TSX: URC), holding a strong portfolio includes strategic acquisitions in uranium interests with royalties, streams, equity in uranium companies, and physical uranium trading. Their strategic approach aims to support cleaner, carbon-free nuclear energy while fostering long-term relationships based on sustainability principles.

Learn about the company’s portfolio of royalty assets and uranium holdings >>

Orano’s Nuclear Footprint Grows Across America

Orano is a top player in the global nuclear industry, providing safe and effective solutions for managing nuclear waste. It also excels in uranium mining operations in Canada, Kazakhstan, and Niger. Known for its innovative and cost-efficient production methods, the company is leading in uranium extraction. Beyond mining, it also explores and develops new uranium sites and upgrades old mines. Consequently, this upcoming plant in Tennessee will enhance its U.S. presence and help bolster America’s energy independence.

Jean-Luc Palayer, CEO and President, Orano USA,

“We are very pleased to make this announcement with the great state of Tennessee. The warm welcome, responsive engagement, and established nuclear energy community in Oak Ridge, as well as access to continuous and stable power, have been key factors for this site selection. We’re already preparing for our next required steps, including securing available Federal support and customer commitments, obtaining an NRC license 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.”

The Maryland facility is a top provider of technology and services for decommissioning closed nuclear facilities. It handles used nuclear fuel management, federal site clean-ups, and uranium sale, conversion, and enrichment services.

SEE MORE: Orano’s Unlikely Uranium Partner GoldMining (GLDG) Makes Big Strides at Rea 

Commitment to Combat Emissions and Climate Change

Orano is committed to reducing its greenhouse gas (GHG) emissions, aiming for a 25% decrease in direct and indirect emissions (Scopes 1 and 2) by 2025 compared to 2019 levels. This initiative aligns with Orano’s broader goal of addressing its total GHG footprint, including Scope 3 emissions, which come from purchased goods, capital goods, and fuel-related activities.

By 2030, Orano plans to significantly reduce GHG emissions intensity across all scopes. To reach this target, the company is focusing on several key strategies:

Enhancing energy efficiency
Phasing out fossil fuels
Decarbonizing electricity at mining sites
Reducing process emissions

source: Orano

Orano is also incorporating eco-design principles into future projects and operations, ensuring sustainability is integrated from the ground up. Carbon is now a key factor in evaluating new business offers, emphasizing its importance in Orano’s ESG strategy.

Furthermore, the company recently released its earnings reports confirming a stable revenue of around €4.8 billion. Additionally, it aims to maintain an EBITDA margin between 22% and 24%, with a positive net cash flow forecast for the year.

MUST READ: Unplugging The Energy Crisis… Fueled by Uranium

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