OAK RIDGE, Tenn. — Oak Ridge and state leaders announced new details about "Project IKE" Wednesday — a new nuclear energy development that has been quietly progressing in recent months.
On Wednesday, Gov. Bill Lee announced that Orano USA, a company based globally in Paris, is working to build a uranium enrichment centrifuge facility on the Roane County side of Oak Ridge. The governor said the project is the single-largest investment in Tennessee history.
"Orano will be the second company to locate in Tennessee utilizing the Nuclear Energy Fund, which assists nuclear energy-related businesses choosing to relocate or grow in the Volunteer State and supports the state’s universities and research institutions in further developing their nuclear education programs," Lee said. "The company specializes in uranium mining/conversion/enrichment, used nuclear fuel management and recycling, decommissioning shutdown nuclear energy facilities, federal site clean-up and closure and developing nuclear medicines to fight cancer."
Lee said the Tennessee General Assembly approved $60 million total in the 2023-2024 budget that went into the Nuclear Energy Fund to expand and support nuclear energy in the state.
"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," Lee said. "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 Oak Ridge City Council will take up a resolution Wednesday that would throw support behind the significant new project. A memorandum attached to the resolution described the project as a "multi-billion-dollar capital investment" that will create 305 jobs in Oak Ridge. A release said Project IKE would be situated on the Roane County side of Oak Ridge.
A special meeting was held in the Goff Building at the Roane State Community College in Oak Ridge. During the meeting, leaders said they would consider preliminary actions about the project.
At noon Wednesday after the meeting, Gov. Lee made the announcement at the Oak Ridge Enhanced Technology and Training Center.
In February, Oak Ridge leaders began discussing Project IKE. Minutes for the Oak Ridge IDB meeting revealed that leaders discussed a report that included the project, which was described as a part of the nuclear fuel industry.
During the Sept. 4 meeting, the council will discuss formally expressing its support of the project, which will direct the mayor and city manager to take steps to implement terms related to Project IKE.
A memo shows the electricity use for Project IKE is expected to be around 40% of the current citywide load.
"The electric load for Phase I is anticipated to cover all requirements for the project and is estimated at $11,596,888. Water and sewer should be less than $400,000. This will be added load capacity and will not affect the existing load, current customers, or future economic development projects," the memorandum said.
It also said utility costs for the project would be covered by a shared $15 million fund with Oak Ridge, Roane County and the state nuclear fund all contributing $5 million each. It said the Oak Ridge portion would be paid for with additional income resulting from increased power sales.
"The business is nuclear enrichment for energy use (not weapons) and is proposed for location on the 920 Acre SSP-2 Site currently owned by Department of Energy," the memorandum said.
It said the land would be donated by the DOE to the Oak Ridge IDB, which would then be given to the company behind the project at no cost. It said Oak Ridge leaders worked with state leaders on a 50% tax increment financing plan lasting 40 years.
With the plan, the company would be allowed to keep the deed for the property while going through the regulatory process. The memorandum said Project IKE would consist of two phases, and the second phase would only be completed if "market demand requires additional capacity." It also said some old-growth forest on the property would be "removed from the project and retained by DOE."