CDI parent company Holtec signs Purchase and Sale Agreement with Entergy Corp; CDI (a jointly owned company by Holtec and SNC-Lavalin) finalizing contracts for decommissioning two US nuclear power plants
Wednesday, August 15, 2018
MONTREAL: August 1, 2018 - Comprehensive Decommissioning International, LLC (CDI), a joint company of SNC-Lavalin (TSX: SNC) and Holtec International, is finalizing specific contract details with Holtec Decommissioning International, Inc. to enter into two discrete multi-year nuclear decommissioning contracts, each worth hundreds of millions of dollars.
This follows Purchase and Sale Agreements (PSAs) that Holtec International has signed with Entergy Corp. (NYSE: ETR) for the acquisition of the Entergy subsidiary that owns the Pilgrim Nuclear Power Station located in Plymouth, Massachusetts and the Entergy subsidiary that owns the Palisades Power Plant located in Covert, Michigan. The PSA and license transfers are subject to U.S. Nuclear Regulatory Commission (NRC) approvals.
Subject to finalizing the terms of decommissioning contracts, CDI will be responsible for decommissioning the plants, beginning with Pilgrim in 2020. This will include the demolition and cleanup of the two plants and sites. Pilgrim’s accelerated decommissioning by CDI is expected to be completed within eight years; decades earlier than if Entergy selects the maximum SAFSTOR option for the site.
"CDI is committed to decommissioning both Pilgrim and Palisades safely and in an environmentally responsible and ethical manner,” said Mark Morant, President, US Nuclear, SNC-Lavalin. “These projects are vitally important to the local communities and we look forward to accelerating the safe clean-up of the shuttered nuclear plant sites to restore most of the land to unrestricted use in the shortest time possible,” added Dr. Krishna P. Singh, President and CEO of Holtec International.
CDI was formed earlier this year with the goal of performing accelerated decommissioning of retired nuclear power plants using innovative technologies to cut the total time elapsed to release plant sites for unrestricted use to eight years or fewer, leaving only the spent fuel (ISFSI) on site, pending local regulatory approvals (with the exception of the temporary dry storage installation).
Entergy had previously announced its intention to retire Pilgrim by June 1, 2019 and Palisades in the spring of 2022. The PSAs signed by Holtec and Entergy allows for the sale of each Entergy subsidiary to Holtec after plant closures and satisfaction of other closing conditions.