Firm plans to build a facility in Hobbs, NM, to extract fluorine from depleted uranium
International Isotopes Inc. (OTC:INIS) announced Jan 4 it submitted its license application to the Nuclear Regulatory Commission (NRC) for its depleted uranium de-conversion and fluorine extraction processing facility.
The plant would convert depleted uranium hexafluoride (UF6) into depleted uranium oxide, a form which is more chemically stable. The fluoride compounds extracted in the process would be sold commercially. The depleted uranium hexafluoride is expected to come from commercial enrichment facilities.
Status of the deconversion facility
In March 2009, the company announced the selection of a 640-acre building site for the facility just west of Hobbs, New Mexico. In June the company announced completion of the Conceptual Design Report (CDR) for the project. The final cost of the plant could be in the range of $55 million according to previous estimates announced by the firm.
The NRC license review is expected to take approximately 18 to 24 months to complete. The company plans to select a design and build contractor next year and may initiate some pre-license construction activities at the Hobbs site in 2010, subject to NRC approval.
The INIS facility is planned for a location about 15 miles west of Hobbs, NM, and will consist of both depleted uranium de-conversion and fluorine gas extraction processes.
INIS holds patents that give it exclusive rights to the Fluorine Extraction Process (FEP), which produces high value, high purity gases in conjunction with uranium de-conversion, and thus, provides a key commercial advantage to the de-conversion plant.
INIS expects to hire about 150 construction workers for the project and anticipates that it will eventually have a full time staff of approximately 130 to 150 employees for plant operations. Construction of the $55 million facility is anticipated to begin in the third quarter in 2011, after Nuclear Regulatory Commission licensing is complete, and to begin operations in late 2012.
Consistent with an agreement with the State of New Mexico, no waste from the plant will be disposed of in that state. A low-level waste facility is located just over the New Mexico border in Andrews, TX.
NRC public meeting in Hobbs, NM, Jan 14
The Nuclear Regulatory Commission will hold a public meeting Jan. 14 in Hobbs, N.M., to discuss the agency’s license review process for a uranium de-conversion plant proposed to be built in Lea County. (NRC press release)
The meeting will be held in the Banquet Hall of the Lea County Events Center, 5101 N. Lovington Hwy., in Hobbs, NM, (map) from 5 p.m. to conclusion. NRC staff members will be available beginning at 4 p.m. for informal discussions with interested members of the public.
International Isotopes, Inc., submitted an application Dec. 31 for a license to construct and operate a depleted uranium de-conversion and fluorine extraction processing facility in Lea County.
At the Jan. 14 meeting, NRC staff will explain the technical and environmental review processes for the proposed facility, as well as NRC inspections should a license be granted. The staff will also answer questions from the public.
Update on uranium enrichment in the U.S.
International Isotopes will have plenty of opportunity to acquire the raw inventory for its fluorine extraction process. With four new uranium enrichment plants, with combined production of at least 8 million SWU, coming online over the next four years, there should be no shortage of depleted uranium.
LES: The nearest plant to the Hobbs, NM, site is a $2 billion, 3 million SWU, uranium enrichment facility owned and operated by Louisiana Energy Services (LES) located in Eunice, NM, 20 miles due south of Hobbs. That plant is currently spooling up its first centrifuges and is expected to to begin production this year.
Areva: A $2 billion, 3 million SWU uranium enrichment plant will be built and operated by Areva, 18 miles west of Idaho Falls, ID. Areva has submitted a license application to the NRC. The license for the Eagle Rock Enrichment Facility is expected to be issued in 2011, and the plant is expected to start operations in 2014.
Additional uranium enrichment plants are planned to be built in the U.S. by GE-Hitachi and USEC.
GEH:The GE-Hitachi plant is based on a new laser enrichment process that separates U235 from the heavier U238 in a process similar to the way a laser printer deposits various amounts of toner on a piece of paper. GEH submitted an NRC license application in June 2009. According to a schedule published by the NRC, the license is expected to be issued in March 2012. Assuming the firm breaks ground at that time, the plant could be operational by 2014.
GEH is planning to conduct the project in two phases, a test phase and a commercial-scale enrichment plant phase. The Test Loop, which is being built at GE's nuclear fuel fabrication facility in Wilmington, NC, will verify performance and reliability data for full scale, commercial facilities. This engineering demonstration program is currently under construction.
USEC (NYSE:USU) applied for, but did not receive, federal loan guarantees for its American Centrifuge Facility. The Department of Energy said in its evaluation in July 2009 the technology was not yet reliable and the company’s finances were not in shape to meet government due diligence requirements.
Prospects for completion of the plant without the loan guarantee at this time are not good. On Dec 18, 2009, Moody's downgraded USEC ratings, citing credit, competition and liquidity risks.
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At market close Jan 4, the INIS company stock traded at $0.55/share against a 52-week range of $0.16-$0.85.
Prior coverage on this blog
- June 2008 – International Isotopes announces major expansion
- November 2008 – International Isotopes raises $2M
- March 2009 – International Isotopes chooses Hobbs, NM
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