NorthStar Announces Intent to Take Ownership of GE Vallecitos Nuclear Center

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May 10, 2023, 13:07 ET

Deal Would Expand NorthStar's Nuclear Decontamination and Decommissioning Activities

NEW YORK, May 10, 2023 /PRNewswire/ -- NorthStar Group Services, Inc. (NorthStar) today announced an agreement to accept transfer of ownership of the 1600-acre GEH Vallecitos Nuclear Center, in Sunol, CA, from GE Hitachi Nuclear Energy (GEH) for nuclear decontamination, decommissioning, and environmental site restoration. The deal is anticipated to close following U.S. Nuclear Regulatory Commission approvals—including license transfer from GEH to NorthStar—and satisfaction of all other closing conditions.

"Our team has developed deep experience in the safe and efficient decontamination, decommissioning, and restoration of former nuclear reactor sites across the country, including the successful implementation of NRC License Termination Plans at five other research reactor sites nationwide," said Scott State, P.E., NorthStar CEO. "We appreciate GE Hitachi's recognition of our expertise and the trust in our abilities this deal represents."

The proposed deal structure, through which NorthStar will become the NRC-licensed owner of the research reactor complex, is modeled on NorthStar's acquisition of the former Vermont Yankee Nuclear Power Station in Vernon, VT approved by the NRC and state regulators in 2018. The NorthStar-led decommissioning at that former commercial reactor site is currently ahead of schedule for on-budget completion by 2026.

After closing, NorthStar will take over decommissioning work GEH has already begun on the Vallecitos boiling water reactor, which was the first privately owned and operated nuclear power plant to deliver significant quantities of electricity to a public utility grid, along with a number of other test reactors, laboratories and hot cell facilities located on the site. Under the parties' decommissioning completion agreement, NorthStar's efforts will restore the site to conditions suitable for productive reuse for other commercial or industrial purposes. As with its other ongoing nuclear decommissioning projects, NorthStar anticipates being able to dispose of low-level radioactive waste from the Vallecitos decommissioning at the disposal facility operated by NorthStar affiliate Waste Control Specialists, LLC in Andrews County, Texas.

NorthStar, through its Accelerated Decommissioning Partners joint venture, is also actively decommissioning the Crystal River 3 commercial nuclear reactor complex in Citrus County, Florida under a contract with Duke Energy, following NRC and state regulatory approval in 2020.

NorthStar is a privately held firm with majority ownership by New York-based J.F. Lehman & Company (more information at www.jflpartners.com).

For more information about the transaction, please visit https://www.ge.com/news/press-releases/ge-hitachi-announces-intent-to-transfer-ownership-of-vallecitos-nuclear-center to view the statement issued by GE Hitachi Nuclear Energy.

About NorthStar

Based in New York, New York, NorthStar Group Services, Inc. is the world's largest and most comprehensive facility and environmental services contracting group. For more than 20 years, NorthStar has provided solutions to both commercial and government decommissioning and closure projects, including experience working with and for major regional electric utilities and U.S. Department of Energy nuclear facilities. NorthStar is licensed in all 50 states. Learn more at: www.northstar.com.

About GE Hitachi Nuclear Energy

GE Hitachi Nuclear Energy (GEH) is a world-leading provider of advanced reactors and nuclear services. Established in 2007, GEH is a global nuclear alliance created by GE and Hitachi to serve the global nuclear industry. The nuclear alliance executes a single, strategic vision to create a broader portfolio of solutions, expanding its capabilities for new reactor and service opportunities. The alliance offers customers around the world the technological leadership required to effectively enhance reactor performance, power output and safety.

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