BETHESDA, Md.--(BUSINESS WIRE)--Oct. 2, 2018--
Centrus Energy Corp. (NYSE American: LEU) today announced a $15 million
Work Authorization from the U.S. Department of Energy (DOE) for
decontamination and decommissioning (D&D) to prepare the Department’s
K-1600 facility in Oak Ridge, Tennessee for demolition.
Centrus has leased K-1600 from DOE since 2002 to test and demonstrate
the world’s most advanced uranium enrichment centrifuges, while
conducting centrifuge manufacturing, engineering, and design at its
state-of-the-art Technology and Manufacturing Center (TMC) in Oak Ridge.
Earlier this year, Centrus obtained a license from the State of
Tennessee to allow for future testing activities at TMC so that the
company can consolidate its future centrifuge development efforts at a
single, Centrus-owned facility, obviating the need to continue using
K-1600.
“As we consolidate our centrifuge work into our own facility, this work
authorization for K-1600 allows us to help the Department meet its
timetable for returning the East Tennessee Technology Park site to the
community for reuse and economic development,” said Daniel B. Poneman,
Centrus president and chief executive officer. “The new D&D work builds
on our recent successful effort to D&D our Ohio facility, advancing our
strategic objective to continue to leverage our unique technical
capabilities to diversify our business.”
K-1600 is one of the last remaining legacy structures on the 2,200-acre
site of the World War II-era K-25 uranium enrichment plant, now known as
the East Tennessee Technology Park. Decontaminating and decommissioning
K-1600 is part of a larger effort by DOE to clean up the site so that it
can be reused for commercial and industrial purposes by the local
community. Centrus recently completed similar work at its 120-machine
demonstration cascade in Piketon, Ohio, finishing on schedule and under
budget.
Centrus’ work at K-1600 will involve the removal and disposition of all
equipment and materials to render K-1600 non-radiologically contaminated
and non-possessing (i.e. unclassified). After completion of the work,
DOE will be able to turn the facility over to a contractor to demolish
the building. Centrus’ work will occur between October 1, 2018, and
September 30, 2019.
In addition to this decontamination and decommissioning project, Centrus
continues to discuss with DOE the additional development, testing, and
demonstration work on U.S. uranium enrichment technology for future use
by the U.S. Government for national security purposes.
About Centrus Energy
Centrus 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 capabilities, Centrus offers turnkey
engineering and advanced manufacturing solutions to its customers. The
Company 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, as
amended (the “Exchange Act”) - 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”, “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 risks: 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”); risks relating to our sales order
book, including uncertainty concerning customer actions under current
contracts and in future contracting due to market conditions and lack of
current production capability; pricing trends and demand in the uranium
and enrichment markets and their impact on our profitability; risks
associated with our reliance on third-party suppliers to provide
essential services to us; risks related to actions that may be taken by
the U.S. government, the Russian government or other governments that
could affect our ability to perform or the ability of our sources of
supply to perform under their contract obligations to us, including the
imposition of sanctions, restrictions or other requirements; the impact
of government regulation including by the U.S. Department of Energy and
the United States Nuclear Regulatory Commission; uncertainty regarding
our ability to commercially deploy competitive enrichment technology;
the potential for further demobilization or termination of the American
Centrifuge project; risks related to the current demobilization of
portions of the American Centrifuge project, including risks that the
schedule could be delayed and costs could be higher than expected;
failures or security breaches of our information technology systems; 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; revenue and operating results can fluctuate significantly
from quarter to quarter, and in some cases, year to year; and other
risks and uncertainties discussed in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for the
year ended December 31, 2017.
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Source: Centrus Energy Corp.
Centrus Energy Corp.
Jeremy Derryberry (301) 564-3392
