Areva plans to build $2 bn uranium plant in Idaho

BOISE, IDAHO: French-owned energy services company Areva NC Inc. will build a $2 billion (euro1.29 billion) uranium enrichment facility in the US, where nuclear power is increasingly viewed as vital in the support of its economic growth.

The plant will be built on a site near the Idaho National Laboratory in the eastern state city of Idaho Falls, where scientists have done research into nuclear energy since the 1940s, the company said Tuesday.

A late-session push in the Idaho Legislature to extend a sales tax exemption for production equipment that handles nuclear fuel and to cap property tax valuations at the plant to $400 million (euro257.6 million) helped convince the company to select Idaho.

Areva plans to build the plant by 2014. A program in which Russia has been converting weapons-grade uranium to uranium suitable for use in electricity-producing reactors and selling it to an Areva rival expires in 2013.

``The United States needs more clean energy to support its economic growth,'' Michael McMurphy, Areva NC's president and chief executive president, said in a statement. ``To enable us to meet those needs we have to expand our domestic nuclear infrastructure, secure our supply of enrichment services, and reduce our reliance on foreign imports. This new enrichment plant is a critical part of this process.''

Before the plant is built, Areva still must get approval from local, state and national agencies, including a license from the Nuclear Regulatory Commission to construct and operate the facility.

Areva selected Idaho over sites in Washington state, Ohio, Texas and New Mexico.

``While we had several attractive sites to choose from, we opted for Idaho Falls, which has strong ties to nuclear energy, and which welcomed Areva and its proposed enrichment facility to become a new member of its community,'' McMurphy said.

Areva NC, headquartered in Bethesda, Maryland, is a subsidiary of France's Areva Group. Areva also is building a similar, larger uranium enrichment plant in France.

The federal Nuclear Regulatory Commission took applications to build seven new commercial US nuclear reactors last year, with 25 more licensing requests expected through 2009. As interest in nuclear power grows, there are two other uranium enrichment plants being built in the United States, one in southeastern New Mexico and another in Piketon, Ohio.