Paducah soon to be home of $1.7B nuclear facility. How many KY jobs will be added?
A nearly $2 billion nuclear energy project will create 240 new jobs in Paducah, state officials announced last week.
Global Laser Enrichment plans to build a $1.76 billion Paducah Laser Enrichment Facility in McCracken County adjacent to the former Paducah Gaseous Diffusion Plant where it will re-enrich uranium, a process that makes the element more suitable for use in nuclear power plants.
Gov. Andy Beshear said March 26 the investment is the single-largest capital investment project in Western Kentucky since a previous $1.5 billion investment for a separate uranium enrichment facility in the same area was announced last summer.
The Global Laser Enrichment facility is under license application review by the U.S. Nuclear Regulatory Commission. If approved, the facility would re-enrich over 200,000 metric tons of depleted uranium through a 2016 contract with the Department of Energy, accelerating site cleanup at the former Paducah diffusion plant.
The state’s Economic Development Finance Authority gave preliminary approval to the laser enrichment facility for $24 million from the state’s Business Investment Program which is tied to job and wage targets for the next 15 years. The number of jobs will be 240 at year one with an average hourly wage of $62 including employee benefits, according to meeting materials from March 26.
The authority also approved $3 million through the Kentucky Enterprise Initiative Act that allows approved companies to recoup sales and use taxes on construction costs. Anticipated project investments are $47 million for equipment and more than $1.7 billion for a new building and improvements.
“The incentive package reflects a shared vision for economic development, technological leadership and the establishment of a resilient domestic nuclear fuel supply chain,” said Global Laser Enrichment CEO Stephen Long. “... Paducah was once the hub of the U.S. nuclear fuel cycle, and GLE is proud to reassert Kentucky’s leadership with the world’s most advanced uranium enrichment technology.”
In addition to state incentive dollars, Global Laser Enrichment was awarded $28.5 million from the U.S. Department of Energy for its work.
“This is a game-changing investment for Western Kentucky and our entire commonwealth, and I am excited to see this project and the 240 great jobs come to life for families in Paducah and the surrounding region,” Beshear said. “This project solidifies our role as a leader in the country’s nuclear power sector and will transform our economy, creating opportunities for Kentucky families for generations.”
Announcement of the investment came the same week as Sen. Danny Carroll’s bill to establish the Nuclear Reactor Site Readiness Pilot Program was sent to the governor’s desk. The legislation would help jump-start nuclear energy development across the state by covering some of the site permitting costs for small, prefabricated reactors to power data centers and other private-sector projects.
Global Laser Enrichment was also the recipient for some of the first round of grant money through the Nuclear Energy Development Grant Program, also established by a Carroll-sponsored bill. The company anticipates developing and launching a workforce training program. Participants will aid in the construction of the facility and help set the stage for the establishment of a talent pipeline.
Nuclear energy projects — including finding ways to fund and regulate them — have been at the forefront for legislators during this year’s General Assembly as lawmakers want to ensure Kentucky remains competitive in all parts of the energy supply chain.
Local elected leaders in Paducah have also been jockeying for ways to keep the Western Kentucky city energy-dominant. The Paducah Gaseous Diffusion Plant was built in 1952 to produce enriched uranium for the country’s nuclear weapons program and then for commercial nuclear fuel production until 2013 when operations stopped.
For over 75 years, said Paducah Mayor George Bray, uranium enrichment has been a major contributor to the city and the county’s economy. Employment ranged from 1,200 to 2,000 people during enrichment operations and over its lifetime, more than $5 billion in payroll wages, taxes and more have been returned to the local economy, according to a book about the plant’s history.
“Today’s announcement represents a significant step forward for Paducah, the Commonwealth of Kentucky and our nation,” said Bruce Wilcox, president and CEO of Greater Paducah Economic Development, in a March 26 statement. “This project not only honors our region’s history in energy production but also secures our future as a leader in next-generation nuclear technology.”
The Global Laser Enrichment project in Paducah joins another under construction enrichment facility being built by General Matter, a California-based company. Last August, the company signed a multi-decade lease with the Department of Energy for 100 acres where it will build a $1.5 billion facility that will employ 140 people.
On April 1, the Kentucky Public Service Commission — the agency responsible for regulating utilities — will host a public information meeting in Paducah to comply with a directive from the General Assembly to be ready to take on applications for nuclear energy facilities.
The Paducah meeting is the fourth in a series the commission is hosting around the state. While demand for electricity rises, nuclear energy as a power source is “increasingly seen as a reliable, dispatchable, clean energy source,” said Kentucky Public Service Commission Chair Angie Hatton before the public meetings began.
.JPG)