A nuclear medicine company backed by Bill Gates plans to build a $450 million manufacturing facility in South Philadelphia to produce rare radioactive isotopes used in cancer treatment. TerraPower Isotopes, a division of a nuclear science company founded by Gates, announced it will lease a 250,000-square-foot custom facility at The Bellwether District, the redevelopment of the former Philadelphia Energy Solutions refinery site.
The Washington-based company said the new site will manufacture actinium-225, a rare radioactive isotope used in targeted alpha therapy. This treatment method directs precise radiation at cancer cells. TerraPower plans to sell the isotope to companies developing cancer therapies, and the material is currently being tested in clinical trials.
Production of actinium-225 is extremely limited worldwide. Canadian Nuclear Laboratories states that the total global supply produced each year is less than a grain of sand. TerraPower will produce radioisotope generators that enable the extraction of actinium-225 for medical use.
Scott Claunch, president of TerraPower Isotopes, described the facility as part of a growing industry focused on new cancer treatments. “This new facility is a testament to the demand for actinium-225 as part of the growing industry which is transforming how cancer is treated,” Claunch said in a statement.
The project will create 225 full-time jobs and about 500 temporary construction jobs. State funding agreements require the company to create the 225 jobs within three years and maintain them for at least two years.
Pennsylvania is providing $10 million in grants for the project. The support includes a $7 million Pennsylvania Strategic Investments to Enhance Sites grant and a $3 million Pennsylvania First grant. TerraPower will also be eligible to apply for the state’s Manufacturing Tax Credit and the Qualified Manufacturing and Innovation Reinvestment Deduction program. The facility’s location in a Keystone Opportunity Zone provides additional tax incentives.
Justin Backover, a spokesperson for the Pennsylvania Department of Community and Economic Development, said those incentives could eliminate most of TerraPower’s state and local taxes. The company will still pay the Philadelphia wage tax.
TerraPower reviewed more than 350 potential sites across the United States before selecting Philadelphia. City officials said the decision was influenced by the city’s life sciences industry and research environment.
Karen Fegely, Philadelphia’s commerce director, said the city’s scientific and research institutions helped attract the project. “They chose to locate here in Philadelphia because we have so much of this great research and science and life sciences industry here in Philadelphia,” she said. Fegely added, “It’s a really big deal!”
Mayor Cherelle Parker described the development as a “major win for Philadelphia.” In a statement, Parker said, “This investment will create hundreds of good paying jobs, strengthen our advanced manufacturing and life sciences sectors and expand economic opportunity. Exciting things are coming to South Philly, and we are just getting started.”
The TerraPower facility will be located within the Innovation Campus at The Bellwether District. HRP Group owns the 1,300-acre property, which was previously the site of the Philadelphia Energy Solutions refinery. HRP Group acquired the land in 2020 after the refinery shut down following a 2019 explosion and fire that shook nearby neighborhoods.
The property has undergone environmental cleanup and remediation overseen by the Pennsylvania Department of Environmental Protection and the U.S. Environmental Protection Agency. Amelia Chassé Alcivar, executive vice president of corporate affairs at HRP Group, said during a virtual community meeting that construction of the TerraPower building will begin this spring and operations are scheduled to start in 2029.
TerraPower will be the second tenant at the Bellwether District. In December, canned beverage manufacturer DrinkPAK announced plans to invest $195 million in a custom 1.4 million-square-foot production facility near 26th Street and Penrose Avenue within the Industrial Campus. Two other warehouses have already been built at the site.
HRP Group plans to develop more than a dozen warehouses and industrial buildings throughout the district. The company estimates the development could create more than 19,000 full-time jobs. Pennsylvania has also invested $40 million to improve roadways surrounding the Bellwether District.
Because the facility will handle radioactive materials, TerraPower said the site will operate under strict safety controls. A company spokesperson said the materials will be handled by trained professionals in controlled environments with regulatory oversight.
“The radioactive materials are handled in highly controlled environments by trained professionals, with oversight from several regulatory bodies,” the spokesperson said. “Facilities are specifically designed with shielding, monitoring systems, and safety protocols to protect workers, the public, and the environment. The amounts of radioactive material involved are extremely small, carefully measured, and strictly tracked.”
For residents who lived near the refinery, the redevelopment follows years of environmental and community advocacy. Shawmar Pitts of the environmental justice group Philly Thrive recalled the refinery explosion in 2019.
“It just blew up!” Pitts said. “That day was like one of those days you’ve always dreaded, and then you say, ‘Oh my goodness, it’s happening.’”
Pitts said Philly Thrive wants the redevelopment to provide benefits for nearby residents. “We want a community benefits agreement,” he said, adding that the group will continue efforts to confirm the land remains safe. The organization previously advocated for a business other than a refinery to operate at the site, and Pitts said the TerraPower facility fits the types of businesses the group considers acceptable.
City officials view the development as an opportunity for new activity at the Bellwether District. Fegely said the redevelopment of the former refinery property presents an opportunity for Philadelphia’s economy.
“It’s really exciting to see this new life at Bellwether District,” Fegely said. “It’s a really important time and a really important opportunity for Philadelphia.”
