BETHESDA, Md.--(BUSINESS WIRE)--Sep. 22, 2016--
Centrus Energy Corp. (NYSE MKT: LEU) announced today it has entered into
a new follow-on contract with UT-Battelle, LLC, as operator of the U.S.
Department of Energy’s Oak Ridge National Laboratory, for maintaining
and advancing U.S. gas centrifuge uranium enrichment technology. The
contract is valued at approximately $25 million and runs through
September 30, 2017. Under the terms of the contract, Centrus will
perform engineering and testing work on the American Centrifuge uranium
enrichment technology to support future national security and energy
security needs.
“With this contract, our scientists, engineers and operations staff can
continue their vital work ensuring that an advanced U.S. uranium
enrichment technology is ready for deployment when the country needs
it,” said Larry B. Cutlip, vice president, Field Operations. “While
those decisions will be made by the President and Congress, Centrus
remains committed to being a reliable partner for the U.S. government in
advancing America’s critical national interests.”
Under this new contract, Centrus scientists, engineers, and operators
will utilize the Company’s unique facilities in Oak Ridge, Tenn., to
develop and test technology improvements to reduce costs, improve
manufacturability, and enhance long-term reliability of U.S. uranium
enrichment technology. The work ensures that critical U.S. expertise in
centrifuge technology and operations is maintained and advanced to meet
the future needs of the nation.
The Company noted that, while the vast majority of its business is
focused on supplying nuclear fuel to utilities through contracts with a
global network of uranium enrichment producers, Centrus remains
committed to its role in supporting U.S. national interests.
National Security
The United States, which once led the world in uranium enrichment, shut
down the last of its outdated and increasingly uneconomical Cold War-era
enrichment plants in 2013 – leaving the nation without a domestic,
industrial-scale uranium enrichment capability for national security
purposes for the first time since the Manhattan Project. For commercial
electricity production, the United States now imports the great majority
of its enriched uranium fuel from Russia, Europe, and China.
While current market conditions do not support building a full-scale
uranium enrichment plant for commercial purposes, over the long-term the
United States will need to deploy a domestic enrichment technology at
industrial scale to strengthen energy security, advance U.S.
nonproliferation goals, provide fuel for the long-term needs of the
nuclear Navy, and ensure a supply of tritium, which is needed to
maintain the effectiveness of America’s nuclear deterrent. In October
2015, the U.S. Department of Energy issued a report to Congress which
explored a range of possible technologies and found that the American
Centrifuge is the “most technically advanced and lowest risk option” for
restoring America’s domestic uranium enrichment capability to meet
long-term national security needs.
About Centrus Energy Corp.
Centrus Energy is a trusted supplier of enriched uranium fuel for
commercial nuclear power plants in the United States and around the
world. With world-class technical and engineering capabilities, Centrus
is advancing the next generation of centrifuge technologies so that
America can restore its domestic uranium enrichment capability in the
future.
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”, “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 and
uncertainties related to 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 related to actions that may be
taken by the U.S. government, the Russian government or other
governments that could affect our ability or the ability of our sources
of supply to perform under contract obligations, including the
imposition of sanctions, restrictions or other requirements; the impact
of government regulation including by the U.S. Department of Energy and
the U.S. Nuclear Regulatory Commission; pricing trends and demand in the
uranium and enrichment markets and their impact on our profitability;
uncertainty regarding our ability to commercially deploy competitive
enrichment technology; risks and uncertainties regarding funding for the
American Centrifuge project and our ability to enter into an extension
of the agreement with UT-Battelle, LLC, the management and operating
contractor for Oak Ridge National Laboratory, for continued research,
development and demonstration of the American Centrifuge technology; the
competitive environment for our products and services; the potential for
further demobilization or termination of the American Centrifuge
project; risks related to the current demobilization of the portions of
the American Centrifuge project including risks that the schedule could
be delayed and costs could be higher than expected; 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 this and our other filings with the
Securities and Exchange Commission, including our Annual Report on Form
10-K for the fiscal year ended December 31, 2015 and subsequent
Quarterly Reports on Form 10-Q, which are available on our website at www.centrusenergy.com.
We do not undertake to update our forward-looking statements except as
required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160922005663/en/
Source: Centrus Energy Corp.
Centrus Energy Corp.
Media:
Jeremy Derryberry (301) 564-3392
or
Investors:
Don
Hatcher (301) 564-3460
