Centrus’ American Centrifuge Technology Demonstration and Operations Agreement Extended
23 Janeiro 2015 - 11:51AM
Business Wire
– Oak Ridge National Laboratory exercises
six-month option to continue demonstration and operation of sole
U.S. uranium enrichment technology –
Centrus Energy Corp. (NYSE: LEU) announced today that
UT-Battelle, LLC, as operator of the U.S. Department of Energy’s
Oak Ridge National Laboratory (ORNL) has exercised its option to
extend the American Centrifuge Technology Demonstration and
Operations Agreement (ACTDO Agreement) by six months from March 31
to September 30, 2015. ORNL had previously exercised an option to
extend the agreement through March 31, 2015.
Centrus, which has invested more than $2.5 billion to develop
the only U.S.-origin uranium enrichment technology available for
national and energy security purposes, acts as a subcontractor to
ORNL through its wholly owned subsidiary American Centrifuge
Operating, LLC. The national laboratory has been tasked by the
Department of Energy (DOE) to assist in developing a path forward
for achieving a reliable and economic domestic uranium enrichment
capability that supports national security.
The ACTDO Agreement requires the company to furnish technical
reports and data to ORNL from the cascade operations at Centrus’
Piketon, Ohio, facility and from the core American Centrifuge
research and technology activities at Centrus’ Oak Ridge, Tenn.
facilities.
“Our American Centrifuge team continues to make solid progress
executing the ACTDO agreement,” said Steven R. Penrod, vice
president, American Centrifuge. “We are operating a cascade of
machines and demonstrating this remarkable uranium enrichment
technology that is capable of supporting our country’s national
security objectives. We appreciate ORNL’s confidence in our team’s
work through their support of this six-month extension.”
Under the extended subcontract, Centrus will continue these
operations in Ohio and Tennessee. The FY2015 omnibus appropriations
bill signed by President Obama on December 16, 2014, provides $97.2
million in funding for domestic uranium enrichment research,
development and demonstration. This appropriation provides funding
for the continuation of the ACTDO Agreement for the remainder of
the federal government’s fiscal year through September 30, 2015. A
bipartisan consensus in Congress and the administration recognized
the importance of maintaining the American Centrifuge technology
for national and energy security purposes.
The ACTDO Agreement is a firm fixed-price contract. The
agreement provided two options to extend the contract for six
months, each at a price of $41.7 million for each option period.
The total price of the contract including options is approximately
$117 million.
Pursuant to the FY2015 omnibus appropriations bill, DOE is
currently examining long-range options for meeting the government’s
need for enriched uranium to support national security. DOE is
expected to report its findings to Congress later this year.
Centrus remains committed to working closely with DOE and Congress
to maintain and deploy this technology to serve national security
and energy security needs.
About Centrus Energy Corp.
Centrus Energy Corp. is a trusted supplier of enriched uranium
fuel for a growing fleet of international and domestic commercial
nuclear power plants. Centrus is working to deploy the American
Centrifuge technology for commercial needs and to support U.S.
energy and national security.
Forward-Looking Statements:
This news release contains “forward-looking statements” within
the meaning of Section 21E of the Securities Exchange Act of 1934 -
that is, statements related to future events. In this context,
forward-looking statements may address our expected future business
and financial performance, and often contain words such as
“expects”, “anticipates”, “intends”, “plans”, “believes”, “will”
and other words of similar meaning. Forward-looking statements by
their nature address matters that are, to different degrees,
uncertain. For Centrus Energy Corp., particular risks and
uncertainties that could cause our actual future results to differ
materially from those expressed in our forward-looking statements
include, uncertainty regarding our ability to commercially deploy
the American Centrifuge project; uncertainty regarding funding for
the American Centrifuge project and the potential for a
demobilization or termination of the American Centrifuge project if
additional government funding is not provided during the term of
the agreement with UT-Battelle, LLC, the management and operating
contractor for Oak Ridge National Laboratory (“ORNL”) for continued
research, development and demonstration of the American Centrifuge
technology (the “ACTDO Agreement”), including for any option
periods, or upon completion of such agreement; risks related to our
ability to perform the work required under the ACTDO Agreement at a
cost that does not exceed the firm fixed funding provided
thereunder; uncertainty regarding the timing and structure of the
U.S. government program for maintaining a domestic enrichment
capability to meet national security requirements and our role in
such a program; the impact of actions we have taken (including as a
result of the reduction in scope of work under the ACTDO Agreement
as compared to the scope of work under the prior agreement signed
with DOE in June 2012 (the "Cooperative Agreement") or might take
in the future to reduce spending on the American Centrifuge
project, including the potential loss of key suppliers and
employees and impacts to cost, schedule and the ability to
remobilize for commercial deployment of the American Centrifuge
Plant; the impact of enrichment market conditions, increased
project costs and other factors on the economic viability of the
American Centrifuge project without additional government support
and on our ability to finance the project and the potential for a
demobilization or termination of the project; uncertainty regarding
our ability to achieve targeted performance over the life of the
American Centrifuge Plant which could affect the overall economics
of the American Centrifuge Plant; uncertainty concerning the
ultimate success of our efforts to obtain a loan guarantee from DOE
and/or other financing for the American Centrifuge project or
additional government support for the project and the timing and
terms thereof; the dependency of government funding or other
government support for the American Centrifuge project on
Congressional appropriations or on actions by DOE or Congress;
potential changes in our anticipated ownership of or role in the
American Centrifuge project, including as a result of our role as a
subcontractor to ORNL or as a result of the need to raise
additional capital to finance the project in the future; changes in
U.S. government priorities and the availability of government
funding or support, including loan guarantees; changes to, or
termination of, our agreements with the U.S. government; the impact
of government regulation by DOE and the U.S. Nuclear Regulatory
Commission; and other risks and uncertainties discussed in this and
our other filings with the Securities and Exchange Commission,
including our Annual Report on Form 10-K for the year ended
December 31, 2013 (“10-K”) and quarterly reports on Form 10-Q.
Revenue and operating results can fluctuate significantly from
quarter to quarter, and in some cases, year to year. Readers are
urged to carefully review and consider the various disclosures made
in this report and in our other filings with the Securities and
Exchange Commission that attempt to advise interested parties of
the risks and factors that may affect our business. We do not
undertake to update our forward-looking statements except as
required by law.
Centrus Energy Corp.Media:Jeremy Derryberry,
301-564-3392orInvestors:Steven Wingfield, 301-564-3354
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