WASHINGTON - The U.S. Department of Energy will take over the management of a proposed uranium-enrichment plant in southern Ohio in order to continue the project, Energy Secretary Ernest Moniz said yesterday. Testifying before a House Appropriations subcommittee, Moniz said the department - through its Oak Ridge (Tenn.) National Laboratory - will take over management of the American Centrifuge Project in Piketon.

WASHINGTON � The U.S. Department of Energy will take over the management of a proposed uranium-enrichment plant in southern Ohio in order to continue the project, Energy Secretary Ernest Moniz said yesterday.

Testifying before a House Appropriations subcommittee, Moniz said the department � through its Oak Ridge (Tenn.) National Laboratory � will take over management of the American Centrifuge Project in Piketon.

�We have to preserve the technology, we have to preserve the (intellectual property) and we have to think about how we are going to go ahead to meet our national-security obligations,� Moniz said.

The Piketon plant currently is operated by USEC, a former federal entity that was privatized in 1998. But the company declared bankruptcy last month, to restructure its debt. It has been troubled by a drop in demand for enriched uranium in the wake of the 2011 meltdown of three reactors in Fukushima, Japan, caused by a tsunami.

Moniz suggested USEC would continue to play a role in the new arrangement, likely as a subcontractor. The Piketon project itself will not move but simply change management.

On April 15, a federally funded research and development project at the plant runs out of money. Last month, the company sent employees at the plant notices warning of possible layoffs.

Supporters say the need for U.S.-produced enriched uranium outweighs concerns about weak demand for it or even concerns about USEC�s long-term viability. Critics, meanwhile, say it�s been a boondoggle that has cost taxpayers millions of dollars but has yet to demonstrate a payoff.

The department is looking at how to reprogram $57 million in Energy Department money to keep the plant running.

�We have to keep it going this year,� Moniz said, adding that the American Centrifuge Project met all of the goals set by the Department of Energy. �Frankly, it would be very, very desirable to make sure we keep our 120 machines spinning.�

After the testimony, USEC issued a statement saying it was pleased that Moniz had �confirmed the importance of maintaining a domestic uranium technology to support national-security objectives."

Paul Jacobson, a spokesman for USEC, said the parameters of the arrangement are still being set. �The scope is being determined,� he said.

jwehrman@dispatch.com