The soon-to-close Oyster Creek nuclear plant is to be sold and its new owner plans to decommission the New Jersey reactor a full five decades sooner than originally planned.
Sale of the plant in Lacey Township by Exelon to Holtec International was announced Tuesday by both companies.
"This landmark agreement is good news for Oyster Creek employees, the Lacey community and the state of New Jersey," said Bryan Hanson, the chief nuclear officer at Exelon.
Oyster Creek which began producing electricity in 1969 and is one of the nation's oldest nuclear generating stations, is scheduled to shut down Sept. 17.
Exelon had submitted a plan to the Nuclear Regulatory Commission in which it said it would put most of the plant in storage and begin final demolition in about half a century, a process that would stretch out to about 60 years.
Holtec plans to greatly accelerate that timeline, saying in its announcement Tuesday the work would be completed in eight years with "the highest standard of safety, quality and environmental stewardship."
The proposed deal would give Holtec ownership of the 779 acres of land, its structures and the spent nuclear fuel at the plant.
The sale is expected to close in the third quarter of 2019 after clearing all regulatory hurdles, officials said in the joint announcement. They did not disclose a price for the deal.
The transfer of the plant's license from Exelon to Holtec must be approved by the NRC. That process could include input from the public.
"We would review the proposal to ensure the new owner had the technical and financial capabilities to safely decommission the plant and to appropriately manage the spent nuclear fuel until such time that there is a permanent or interim repository able to receive it," NRC Spokesman Neil Sheehan said.
Holtec will also now need to submit a revised decommissioning plan, or Post-Shutdown Decommissioning Activities Report, to the NRC for its review since it plans to step up the process. The New Jersey Board of Public Utilities would also have to OK the deal, officials say.
Environmental groups who have frequently assailed what they say has been Oyster Creek's impact on the area are mostly pleased with Tuesday's news.
"This is what we have wanted all along," said New Jersey Sierra Club Director Jeff Tittel of the earlier decommissioning.
"This is what the Sierra Club has called for and will be safer for the community and better for the environment. However, this sale still raises many questions about the facility as far as transparency, accountability and oversight," Tittel said.
Holtec says it will contract with Comprehensive Decommissioning International to perform decontamination and decommissioning work at Oyster Creek.
According to Tuesday's announcement, the $980 million-plus decommissioning fund which had been set aside for Oyster Creek's closure will be transferred to Holtec.
What will happen to the spent nuclear fuel at Oyster Creek remains a question once the decommissioning is completed.
Holtec has submitted a license application to the NRC for what's described as an "autonomous consolidated interim storage facility" for spent nuclear fuel in New Mexico to accept spent fuel from all U.S., nuclear plants including Oyster Creek.
A permanent repository for spent nuclear fuel is on hold after money ran out for the study of Yucca Mountain site in Nevada.
Exelon is the national's largest operator of nuclear power plants, operating 23 reactors at 14 nuclear facilities in New York, New Jersey, Pennsylvania, Maryland and Illinois.
Holtec is a privately held energy and technology company with operations across the U.S, and around the world with its main focus on the nuclear industry.
The company says it will contract with Comprehensive Decommissioning International to perform decontamination and decommissioning work at Oyster Creek. CDI is a joint venture of Holtech and SNC-Lavalin.
"Exelon considered many options for decommissioning Oyster Creek. Through a formal, competitive proposal process, we selected Holtec, a 30-year industry leader in used fuel management technologies," said Suzanne D'Ambrosio, Exelon spokeswoman. "Further, its joint venture with SNC-Lavalin gives us confidence in Holtec's ability to manage the station's decommissioning efficiently and with the highest degree of safety, quality and precision."
Oyster Creek, located on the Barnegat Bay, had once employed 500 people.
While some had been given layoff notices, others were to remain for post-shutdown work, including moving spent fuel from the reactor and the spent fuel storage pool into permanent outdoor dry cask containers.
There are currently 34 dry casks holding nuclear waste on site at the plant. Estimates are another 40 casks will be needed to accommodate the remaining used fuel rods.
"We hope to offer job opportunities to the many Oyster Creek-based Exelon employees who may wish to pursue exciting career opportunities with our company," Holtec President and CEO Kris Singh said.
With the closure of Oyster Creek, New Jersey will have just three nuclear plants left. The trio, operated by PSEG Nuclear in Lower Alloways Creek Township, Salem County, produce enough electricity to power three million homes.
Each of those reactors -- Salem, 1, Salem 2 and Hope Creek -- have received license extensions to operate well into the 21st century.
There are 24 nuclear reactors that have been shut down in U.S. history. While some have been fully decommissioned, the others are in various stages of the process.
Bill Gallo Jr. may be reached at bgallo@njadvancemedia.com. Follow Bill Gallo Jr. on Twitter @bgallojr. Find NJ.com on Facebook. Have a tip? Tell us. nj.com/tips