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ORNL to extend contract for uranium centrifuge work, but at reduced level; could require layoffs

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American Centrifuge Technology Manufacturing Center

The American Centrifuge Technology Manufacturing Center in south Oak Ridge is pictured above. (Photo courtesy USEC/Centrus Energy Corp.)

 

Oak Ridge National Laboratory intends to extend its contract with Centrus Energy Corporation for research on uranium enrichment centrifuges, but at a reduced level, with funding cut by about 60 percent, the company said Friday. Layoffs could be required, Centrus said in a press release.

The contract extension continues technology development activities at Oak Ridge facilities for advanced uranium enrichment centrifuges, but revenues won’t be used for operations in Piketon, Ohio, the press release said.

The new contract will cover a one-year period from October 1, 2015, to September 30, 2016, with the possibility for additional extensions, the release said.

It said the U.S. Department of Energy’s decision to provide reduced funding will support continued developments of the company’s American Centrifuge technology—which has long-term importance for national and energy security. [Read more…]

USEC centrifuge agreement extended, but future uncertain as workers receive WARN notices

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Centrifuge Machine Manufacturing

In Oak Ridge, USEC workers take part in centrifuge operations, testing, and manufacturing for the American Centrifuge Project. (Photos courtesy USEC)

Note: This story was last updated at 11:11 a.m.

The American Centrifuge Project, a program that would enrich uranium for commercial nuclear power plants and has operations in Oak Ridge, got a little extra time this week.

Several billions have already been spent and funding was set to expire April 15, but USEC announced Tuesday morning that the research, development, and demonstration agreement was extended through April 30. That was done at no additional cost to the taxpayer through “prudent management of existing program funds by USEC,” the company said in a press release.

In the meantime, USEC said it continues its discussions with Oak Ridge National Laboratory, which could take over the management of the project for national security purposes. The DOE takeover was announced by Energy Secretary Ernest Moniz during a House Appropriations subcommittee hearing earlier this month.

The future of the project is not clear and several hundred workers have received notices that they could be laid off. On Friday, USEC Inc. spokesperson Paul Jacobson said the 60-day notices, which were effective March 19, were sent to 174 USEC employees in the Oak Ridge area and a total of 400 workers. Most of the other workers are in Piketon, Ohio, but there are also a few at USEC headquarters in Bethseda, Md. [Read more…]

USEC’s American Centrifuge program could be extended

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USEC

Part of the USEC site in south Oak Ridge is pictured above.

USEC, an international uranium fuel company that has operations in Oak Ridge, learned Wednesday that the federal government could extend its American Centrifuge research, development, and demonstration program for three months.

In a press release, USEC said the U.S. Department of Energy is prepared to extend the program for three months beyond Jan. 15, 2014, subject to Congressional appropriations.

DOE and USEC will share costs of the program on an 80 percent/20 percent basis for a total funding level of about $10 million per month, the release said. [Read more…]

Federal contractors, agencies consider shutdowns, furloughs as funding dispute drags on

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Joe L. Evins Federal Building

The U.S. Department of Energy will soon start shutting down nonessential operations, resulting in employee and contractor furloughs, unless Congress passes a spending bill. Pictured above is DOE’s Oak Ridge Office at the Joe L. Evins Federal Building.

Furloughs possible at DOE, UCOR, other federal contractors; some SAIC employees on leave

The government shutdown is now in its second week, and the U.S. Department of Energy could start shutting down nonessential operations soon—resulting in employee and contractor furloughs—unless Congress quickly approves a spending bill, officials said Tuesday.

Federal contractors with operations in Oak Ridge are also considering possible shutdowns and furloughs because congressional Democrats and Republicans have failed to reach an agreement on a spending bill to keep the government operating in the fiscal year that began Oct. 1.

In a Tuesday message to employees, UCOR President Leo Sain said the company, the government’s cleanup contractor in Oak Ridge, has not been told to shut down yet. [Read more…]

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