US-based Holtec International has announced the permanent cancellation of its interim storage site for spent nuclear fuel in the state of New Mexico. The decision follows nearly a decade of collaboration with the local Eddy-Lea Energy Alliance (ELEA) and several legal setbacks concerning the issuance of federal permits.
A ten-year partnership interrupted
The project, known as the HI-STORE Consolidated Interim Storage Facility (CISF), was designed to temporarily store spent fuel from the country’s nuclear power plants. Based on Holtec’s HI-STORM UMAX dry storage system, the site was initially expected to hold 8,680 tonnes of uranium with a planned expansion up to 10,000 storage canisters. It was to be built on land located between Carlsbad and Hobbs, owned by ELEA, a consortium comprising Eddy and Lea counties and the two municipalities.
A memorandum of agreement was signed in 2015 to cover design, licensing, construction, and operation. In 2023, Holtec received final approval from the United States Nuclear Regulatory Commission (NRC) to begin development.
Legal blockage and strategic withdrawal
In March 2024, the Fifth Circuit Court of Appeals vacated the licence, ruling that the NRC lacked legal authority to grant it. The ruling followed a similar case involving Interim Storage Partners in Texas. Despite no final ruling by the Supreme Court on the core issue, Holtec and its partners have decided to abandon the project.
In a statement, Holtec said it had reached an agreement with ELEA to “release the land for other uses better suited to local needs,” while adding it would “pursue opportunities in other states more receptive to spent fuel storage,” building on recent outreach initiatives by the United States Department of Energy (DOE).
Ongoing uncertainty in the sector
The withdrawal highlights the recurring challenges in developing temporary storage solutions in the US, where a permanent repository has yet to materialise. Legal uncertainty, combined with political and local opposition, continues to deter private investment in this segment of the nuclear cycle. Holtec had petitioned the Supreme Court to reinstate its licence, with no success to date.
Temporary storage projects rely on transporting spent fuel by rail from nuclear plants nationwide. The lack of a permanent solution raises logistical concerns for the industry, which must manage nearly 80,000 tonnes of spent fuel currently stored on-site across the United States.
