AREVA Accepts Conditional Commitment for DOE Loan Guarantee for Eagle Rock Enrichment Facility
July 07, 2010
July 7, 2010
AREVA has accepted the U.S. Department of Energy’s (DOE) offer of a conditional commitment to issue a $2 billion loan guarantee to support construction of the Eagle Rock Enrichment Facility, AREVA’s $3 billion state-of-the-art gas centrifuge enrichment plant in Bonneville County, Idaho.
The plant will add important domestic capacity for uranium enrichment helping to secure the supply of uranium fuel for the country’s 104 operating nuclear reactors, while allowing the United States to once again become a major supplier of this strategic and critical component of the nuclear fuel cycle.
AREVA estimates the construction, licensing, and operation of this facility will generate about 5,000 direct and indirect jobs in the United States, while generating more than $5 billion in economic activity in the regional economy.
When complete, the Eagle Rock facility will help fuel 25 percent of the domestic operating nuclear fleet, and contribute to CO2-free energy generation.
“DOE’s conditional commitment to issue a loan guarantee to finance Eagle Rock sets this project by AREVA on a solid path for success and takes an important step forward in implementing the vision set by Congress and the Administration for our energy security,” said Jacques Besnainou, CEO of AREVA North America. “With the loan guarantee, we will have the means as well as the know-how to move forward.”
AREVA will continue to pursue the necessary licenses and permits for the project. The company is working with the Nuclear Regulatory Commission (NRC) to gain approval of its license to construct and operate Eagle Rock and expects a decision in mid 2011. Construction on the plant is scheduled to begin shortly after the license is granted and commercial production is scheduled to start in 2014.