Usec's enrichment plant depends on DoE loan guarantee decision

7 July 2009

Usec could halt construction of its American Centrifuge Plant if the US Department of Energy (DoE) doesn’t give it a conditional commitment for a loan guarantee by early August.

In a statement Philip Sewell, vice president of American Centrifuge and Russian HEU said a DoE decision is expected by early August.

“As we have stated in the past, a DoE loan guarantee is our path forward for financing the American Centrifuge Plant. Therefore, we are making contingency plans for project demobilization should we not receive a conditional commitment or should a decision on a conditional commitment be further delayed, Sewell said.

Demobilization, which would involve the partial or full halt of ACP activities and plant construction, could begin in August.

So far Usec has invested $1.5 billion in the enrichment plant under construction in Piketon, Ohio. In February, due to the lack of certainty on DoE funding the company initiated cash conservation measures and delayed the ramp-up in hiring. It says it needs a loan guarantee to secure a substantial portion of the remaining financing needed to complete the project.


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