The Department of Energy is backing a proposed contract between USEC and Oak Ridge National Laboratory supporting the American Centrifuge technology, according to a court filing yesterday. A DOE research, development and deployment cost-share program supporting American Centrifuge ends at the end of the month, and the subcontract with ORNL contractor UT-Battelle would start May 1. The deal proposed by USEC and ORNL last week would fund American Centrifuge at about 60 percent of current levels, and would focus on monitoring operations of the currently built cascade of centrifuges. “To the extent that the Agreement supports DOE’s objective of maintaining operation of the centrifuges while the DOE explores its options to meet its national security needs and is otherwise consistent with DOE’s instructions, DOE supports the motion,” DOE stated in a filing in the U.S. Bankruptcy Court for the Delaware District yesterday.
The contract must still be approved by the Court, which will hold a hearing on April 30. DOE added that it has “substantial property interests” in the centrifuge machines. “The Debtor contends that a failure to obtain timely approval of the Agreement may require USEC to demobilize the ACP completely. In such a scenario, the centrifuges would cease operations, which would result in a loss of value in the centrifuges. Given these substantial risks, DOE requests that the Court approve the Agreement on or before April 30, 2014,” DOE said in the filing.
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