Orano Seeks Partners to Bridge Funding Gap for $5 Billion US Nuclear Plant
French nuclear giant Orano SA is actively exploring financing options, including bringing in minority investors, to fund its massive $5 billion uranium enrichment facility in Oak Ridge, Tennessee. Although the project recently secured a $900 million award from the US Department of Energy, a significant funding gap remains. The company indicated Tuesday that it is considering a mix of equity, debt, and strategic partnerships to cover the remaining costs. This facility, known as Project IKE, represents the single largest investment in Tennessee's history and is a critical component of Washington's strategy to sever reliance on Russian nuclear fuel.
The push for domestic enrichment comes directly from the Trump administration, which has allocated a total of $2.7 billion to jumpstart the US nuclear fuel supply chain. Alongside Orano, two other companies Centrus Energy and General Matter also received $900 million awards. This federal aggressive investment is driven by a dual necessity: national security concerns over foreign dependence and a surging domestic demand for electricity, largely fueled by the exponential energy needs of artificial intelligence data centers. The administration aims to quadruple US nuclear capacity by 2050 to meet these rising energy bills and consumption rates.
Despite the influx of federal cash, the project faces a long road to completion. Orano aims to reach a final investment decision by 2026, pending the issuance of a license from the Nuclear Regulatory Commission. The licensing process is complex, with an application expected early next year and a review period that could last up to three years. If successful, the Oak Ridge facility spanning 750,000 square feet and creating over 300 permanent jobs is scheduled to commence production in 2031, supplying enriched uranium to power both existing commercial reactors and the next generation of advanced nuclear plants.