Canadian Uranium Producer Joins GE-Hitachi Venture

A Canadian uranium producer has joined a GE joint venture that aims to enrich the radioactive metal for nuclear power plants.

Cameco Corp., a uranium producer based in Saskatoon, Saskatchewan, will invest $123.8 million to acquire a 24 percent stake in the venture, Global Laser Enrichment, which is 51 percent owned by General Electric Co. and 25 percent owned by Hitachi Ltd.

Enriching uranium is a key part of producing fuel for light water nuclear power plants.

Fairfield-based GE and Tokyo-based Hitachi launched a joint nuclear business in July 2007 to capitalize on rising demand for electricity and concerns about carbon dioxide emissions from coal-fired plants.

The surging price of oil has brought renewed interest in nuclear energy, which has been sidelined over safety concerns.

More Reactors

Arizona Sen. John McCain, the presumptive Republican presidential nominee, recently called for construction of 45 nuclear reactors by 2030.

The Wilmington, N.C.-based GE Hitachi venture said in announcing the Cameco deal that utilities will need to build between 20 and 25 reactors by 2030 to maintain the 20 percent portion of U.S. energy now produced by nuclear power. There are now 104 licensed nuclear reactors operating in the United States.

“We do think there are a lot of opportunities for our business,’’ said Lisa Price, a senior vice president at GE Hitachi. “We think the environment is attractive for nuclear.’’

The launch of a commercial enrichment facility at GE Hitachi’s headquarters is projected for 2012, “assuming commercialization goes as we hope after the testing phase,’’ Price said.

Potential customers for the GE Hitachi-Cameco venture include reactors that GE Hitachi may build and any utility with a nuclear reactor, Price said.