BETHESDA, Md., March 23, 2021 /PRNewswire/ -- Centrus Energy
Corp. (NYSE American: LEU) is providing an update on construction
of the nation's first production facility for High-Assay,
Low-Enriched Uranium (HALEU) in Piketon, Ohio.
"Despite the impact of the pandemic and the extraordinary steps
we have taken to protect our workforce – including limiting the
number of people who can be on the construction site at any one
time – we have kept construction on track and expect to begin
producing HALEU by next year," said Centrus President and CEO
Daniel B. Poneman. "We believe
this first-of-a-kind facility can play a critical role in meeting
both government and commercial requirements for HALEU, powering
America's nuclear leadership as the world turns to a new generation
of advanced reactors and advanced nuclear fuels."
Under a 2019 contract with the U.S. Department of Energy's
Office of Nuclear Energy, Centrus is licensing and constructing a
cascade of sixteen AC100M centrifuges – a U.S. technology – to
demonstrate production of HALEU. The Department stated the
objective was to demonstrate a domestic technology so that it
"could be used in any type of advanced reactors, including defense
reactors that require the use of HALEU produced using U.S.- origin
technology." The three year, $115
million, cost-shared contract runs through mid-2022.
HALEU is an advanced nuclear fuel material that is not
commercially available in the United
States today, but may be required in the future to fuel both
existing and next generation reactors. For example, 9 out of
the 10 reactor designs selected by the Department of Energy for its
Advanced Reactor Demonstration Program are expected to operate on
HALEU. HALEU, which is enriched so that the concentration of
the U-235 isotope is higher than the 4-5 percent level typically
used in existing reactors but lower than 20 percent, offers
numerous advantages in reactor performance and a lower volume of
waste produced.
Construction Update:
- Centrus submitted a license amendment request (LAR) to the U.S.
Nuclear Regulatory Commission (NRC) last year to modify its
commercial license so that it can enrich uranium up to 20 percent
U-235. The NRC has accepted the LAR for technical review and that
review is under way. The facility has an existing NRC license for
production up to 10 percent and, if this amendment is approved,
will become the first U.S. facility licensed for the full range of
LEU and HALEU production up to 20 percent U-235.
- This month, Centrus completed assembly of all AC100M gas
centrifuges. The centrifuges will undergo final preparations prior
to being installed into the production cascade.
- Design and engineering work on the non-centrifuge or "balance
of plant" systems is near completion and system construction is
well under way. Auxiliary and support systems necessary for
operation of the cascade are being installed.
- Upon NRC license amendment approval and successful completion
of the NRC's Operational Readiness Review, Centrus expects to begin
HALEU production by early 2022.
- Centrus has completed all required HALEU Demonstration Program
milestones to date and remains on track to complete the remaining
milestones on time and program completion no later than
June 2022.
- To support the construction effort, Centrus has reactivated its
domestic supply chain for centrifuge components and supporting
equipment needed for the demonstration, and restored its capacity
to manufacture centrifuge parts in its Oak Ridge, Tennessee, manufacturing
facility.
- To date, the program has supported more than 200 direct jobs in
Ohio and Tennessee, as well as supply chain jobs in
Pennsylvania, North Carolina, New
Mexico, Massachusetts, and
other states.
- The workforce of centrifuge operators and support staff
necessary for cascade operations is in place.
- Subject to the availability of funding and/or offtake
contracts, Centrus can build additional centrifuges and support
equipment to expand production in the facility in a modular fashion
to meet whatever level of production is required for commercial
and/or U.S. government purposes.
Centrus is releasing a number of unclassified photos from the
construction effort, which can be found at this link:
https://www.centrusenergy.com/news/HALEU-demonstration-program/
About Centrus Energy
Centrus Energy is a trusted supplier of nuclear fuel and
services for the nuclear power industry. Centrus provides value to
its utility customers through the reliability and diversity of its
supply sources – helping them meet the growing need for clean,
affordable, carbon-free electricity. Since 1998, the Company has
provided its utility customers with more than 1,750 reactor years
of fuel, which is equivalent to 7 billion tons of coal. With
world-class technical and engineering capabilities, Centrus is also
advancing the next generation of centrifuge technologies so that
America can restore its domestic uranium enrichment capability in
the future. Find out more at www.centrusenergy.com.
Forward Looking Statements:
This news release contains "forward-looking statements" within
the meaning of Section 21E of the Securities Exchange Act of 1934.
In this context, forward-looking statements mean statements related
to future events, may address our expected future business and
financial performance, and often contain words such as "expects",
"anticipates", "intends", "plans", "believes", "will", "should",
"could", "would" or "may" 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 but are not limited to the
following, which may be amplified by the novel coronavirus
(COVID-19) pandemic: risks related to natural and other disasters,
including the continued impact of the March
2011 earthquake and tsunami in Japan on the nuclear industry and on our
business, results of operations and prospects; the impact and
potential extended duration of the current supply/demand imbalance
in the market for low-enriched uranium ("LEU"); pricing trends and
demand in the uranium and enrichment markets and their impact on
our profitability; the impact of government regulation and policies
including by the U.S. Department of Energy ("DOE") and the U.S.
Nuclear Regulatory Commission; uncertainty regarding our ability to
commercially deploy competitive enrichment technology; risks and
uncertainties regarding funding for continuation and deployment of
the American Centrifuge technology and our ability to perform and
absorb costs under our agreement with DOE to demonstrate the
capability to produce high assay low enriched uranium ("HALEU") and
our ability to obtain and/or perform under other agreements; risks
related to whether or when government funding or demand for HALEU
for government or commercial uses will materialize; the potential
for further demobilization or termination of our American
Centrifuge work; risks related to our ability to perform and
receive timely payment under agreements with DOE or other
government agencies, including risks and uncertainties related to
the ongoing funding by the government and potential audits; the
competitive bidding process associated with obtaining contracts,
including government contracts; risks related to our ability to
perform fixed-price and cost-share contracts, including the risk
that costs could be higher than expected; risks that we will be
unable to obtain new business opportunities or achieve market
acceptance of our products and services or that products or
services provided by others will render our products or services
obsolete or noncompetitive; risks that we will not be able to
timely complete the work that we are obligated to perform; failures
or security breaches of our information technology systems; risks
related to pandemics and other health crises, such as the global
COVID-19 pandemic; potential strategic transactions, which could be
difficult to implement, disrupt our business or change our business
profile significantly; the outcome of legal proceedings and other
contingencies (including lawsuits and government investigations or
audits); the competitive environment for our products and services;
changes in the nuclear energy industry; the impact of financial
market conditions on our business, liquidity, prospects, pension
assets and insurance facilities; the risks of revenue and operating
results fluctuating significantly from quarter to quarter, and in
some cases, year to year; and other risks and uncertainties
discussed in this and our other filings with the Securities and
Exchange Commission.
For a discussion of these risks and uncertainties and other
factors that may affect our future results, please see Part I, Item
1A, Risk Factors, and the other sections of this Annual Report on
Form 10-K. These factors may not constitute all factors that could
cause actual results to differ from those discussed in any
forward-looking statement. Accordingly, forward-looking statements
should not be relied upon as a predictor of actual results. 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 to reflect
events or circumstances that may arise after the date of this
Annual Report on Form 10-K, except as required by law.
Contacts:
Investors: Dan Leistikow (301)
564-3399 or LeistikowD@centrusenergy.com
Media: Lindsey Geisler (301)
564-3392 or GeislerLR@centrusenergy.com
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SOURCE Centrus Energy Corp.