BETHESDA, Md., Dec. 1, 2022 /PRNewswire/ -- Centrus Energy Corp.
(NYSE American: LEU) announced that its wholly-owned subsidiary,
American Centrifuge Operating LLC (ACO), has signed a definitized
contract with the U.S. Department of Energy (DOE) to pioneer
production of High-Assay, Low-Enriched Uranium (HALEU) at its
facility leased from DOE in Piketon, Ohio. ACO was selected
for the competitively-awarded contract by the Department of Energy
on November 10, 2022. As part
of a previous, cost-shared contract awarded in 2019, Centrus has
been deploying its AC100M advanced uranium enrichment centrifuges
in Piketon and has secured a license amendment from the U.S.
Nuclear Regulatory Commission, making it the only NRC-licensed
HALEU production site.
"Centrus is strongly committed to pioneering production of HALEU
to support the deployment of the next generation of reactors and
help meet the surging global demand for carbon-free energy," said
Daniel B. Poneman, Centrus President
and CEO. "Bringing the demonstration cascade online and starting
HALEU production represents a critical step toward restoring a
domestic enrichment capability for the Nation. We are
dedicated to excellence in the execution of our responsibilities
under this contract."
HALEU is an advanced nuclear fuel required for most of the
next-generation reactor designs currently under development. Nine
of the ten advanced reactor designs selected for funding under the
Department of Energy's Advanced Reactor Demonstration Program,
including the two demonstration reactors, will rely on HALEU, as
will the first non-light water reactor to enter licensing review by
the NRC.
The base contract value is approximately $150 million in two phases through 2024.
Phase One includes an approximately $30
million cost share contribution from Centrus matched by
approximately $30 million from the
Department to finish construction, bring the cascade online, and
demonstrate production of 20 kilograms of 19.75% enriched HALEU by
December 31, 2023.
In Phase Two of the contract, ACO will continue production for a
full year at an annual production rate of 900 kilograms of
HALEU. The Department will own the HALEU produced from the
demonstration cascade and Centrus will be compensated on a
cost-plus-incentive-fee basis, with an expected Phase Two contract
value of approximately $90 million,
subject to appropriations. The contract also gives the
Department options to pay for up to nine additional years of
production from the cascade beyond the base contract; those options
are at the Department's sole discretion and subject to the
availability of Congressional appropriations.
Expanding to Commercial Scale Production
Separate from the operations contract, Centrus could scale up
the Piketon facility with additional centrifuge cascades for
expanded HALEU production – given sufficient additional funding or
offtake contracts. A full-scale HALEU cascade with a capacity
of approximately 6,000 kilograms of HALEU per year (6 MTU/year)
could be brought on line within about 42 months of securing the
funding to do so; an additional cascade could be added every six
months after that. Such an expansion would
mobilize hundreds of union workers in Ohio to build and operate the plant and
support thousands of direct and indirect jobs across a
manufacturing supply chain that is 100 percent domestic.
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 press release may contain statements that constitute
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements by
their nature address matters that are, to different degrees,
uncertain. Accordingly, forward-looking statements should not be
relied upon as a predictor of actual results. Readers are urged to
carefully review and consider this press release and our other
filings with the Securities and Exchange Commission, including our
Annual Report on Form 10-K for the year ended December 31, 2021 and our Quarterly Reports filed
on Form 10-Q. We do not undertake to update our forward-looking
statements to reflect events or circumstances that may arise after
the date of this press release, except as required by law.
Contact:
Dan Leistikow at
LeistikowD@centrusenergy.com
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SOURCE Centrus Energy Corp.