"This action is essential for the long-term security of our nation's electricity supply, because nuclear power generates 20 percent of America's electricity," said Secretary Richardson. "Nuclear power plants require a reliable and secure domestic source of enriched uranium, as an important component of our energy supply. In addition, it will preserve jobs, and provide the facilities in Piketon and Paducah (Kentucky) a new enrichment technology to compete in the energy markets of the 21st century."

The Administration's initiative follows an announcement in June by USEC, the private operator of the plant, to end enrichment operations at Piketon by June 2001. That USEC decision would have resulted in the layoff of 1,200 workers over the next several years. Now, most of these workers will be employed to support the Department of Energy's standby and centrifuge operations, as well as in environmental clean-up activities at the Piketon site.

The Administration's initiative will employ the highly trained and qualified workforce at the Piketon Plant to maintain the facility in standby, while preparing workers to operate a gas centrifuge pilot plant. Gas centrifuge is an enrichment process that increases the concentration of Uranium 235, the isotope desired for the production of nuclear energy. This advanced technology uses only a fraction of the energy required for gaseous diffusion.

The department's plan calls for placing and maintaining a portion of the Piketon Plant in a cold standby condition for five years for possible restart in the event of a significant disruption in America's supply of enriched uranium. Under the department's plan, many of the operations, maintenance, utilities and support personnel would be retained to maintain the facility in standby. This status is maintained until an advanced enrichment technology is successfully demonstrated, projected to be completed in five years.

The centrifuge project, to be managed by the Department of Energy's Oak Ridge National Laboratory, will be completed in five years, with the initial engineering development taking place using existing specialized centrifuge facilities at the East Tennessee Technology Park in Oak Ridge. Within a year, the project focus would shift to Piketon, with the refurbishment of existing facilities there to house the demonstration project.

The centrifuge technology developed in this project will be available to the gaseous diffusion plants in Piketon and Paducah to help ensure the continued competitiveness of the domestic uranium enrichment industry.

The decision announced today came after months of analysis by government officials led by Under Secretary of Energy, Science and Environment Dr. Ernest J. Moniz.

"Development and demonstration of this U.S.-origin advanced enrichment technology is the key to our path forward," said Dr. Moniz. "It supports our national energy security goals and provides a pathway to future enrichment activities at Piketon and Paducah."

Additionally, the Administration's plan would set the stage for the Piketon plant to accelerate cleanup of portions of the plant not needed for standby and potential restart operations. Specifically, the department proposes to initiate a two-year project to remove equipment in surplus facilities at the site as well as to begin a four-year project to remove equipment from the former highly enriched uranium process building.

As part of a December 2000 report to Congress on energy security needs, the entire range of issues involving the front end of the domestic nuclear fuel cycle -- including mining and conversion -- will be analyzed.

The Portsmouth Gaseous Diffusion Plant, located in southern Ohio, was built in the 1950s in response to the increasing demand for enriched uranium for national security and energy security purposes. Today, the Department of Energy is aggressively working to complete environmental remediation of the site by 2006.

Both the Piketon and Paducah plants are owned by the U.S. Department of Energy and are leased to USEC.

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