Five-Year, $121 Million USEC-Financed CRADA Supports U.S. Centrifuge Test Facility
USEC Inc. (NYSE:USU) announced today that it has finalized a $121 million agreement with UT-Battelle LLC, approved by the U.S. Department of Energy (DOE), to expand cooperative efforts to deploy proven U.S. gas centrifuge uranium enrichment technology.The new Cooperative Research and Development Agreement (CRADA) extends through June 2007 and will be funded entirely by USEC.
"This CRADA enables expanded cooperation with DOE to support the deployment of what we expect to be the most efficient uranium enrichment technology in the world," said Dennis Spurgeon, USEC executive vice president and chief operating officer. "In 2005 we will be operating a commercial-sized module of hundreds of next generation U.S. centrifuge uranium enrichment machines that will lead to the start of commercial plant operations in this decade."
"We're extremely pleased to be teaming with USEC on this project of vital importance to our energy security needs and to the nation," said Gil Gilliland, associate director for energy and engineering sciences at DOE's Oak Ridge National Laboratory (ORNL). "This represents a commitment to support the growth of nuclear energy, a clean power source that is not dependent on foreign suppliers."
USEC employees and technical personnel from ORNL, a DOE multi-program research facility managed by UT-Battelle, will work to deploy USEC's "lead cascade" test facility, which will showcase improvements to DOE's proven centrifuge technology. Of the $121 million USEC will be spending within the scope of the CRADA, UT-Battelle will receive $28.5 million for specific design, testing and analysis work. The CRADA work makes up the bulk of the approximately $150 million that USEC has announced it will spend over the next five years to deploy its lead cascade.
USEC's centrifuge program builds upon a proven uranium enrichment technology developed by DOE. "USEC's centrifuge program uses the same technology that DOE spent more than two decades and $3 billion developing and improves its economics through the use of state-of-the-art materials and manufacturing processes," said Spurgeon.
DOE built thousands of centrifuge machines that operated for thousands of hours at performance levels superior to today's best-installed centrifuge technology. The improvements USEC will use in its lead cascade program will further enhance its performance and result in a lower-risk construction program.
On September 5, USEC announced that it had received initial proposals from the states of Kentucky and Ohio for the siting of USEC's lead cascade facility. When operations begin in 2005, this facility will feature up to 240 full-scale centrifuge machines enriching uranium in a closed cycle. Its purpose is to provide updated cost, schedule and performance data for building a $1 billion to $1.5 billion commercial centrifuge uranium enrichment plant. The project will provide several hundred contract manufacturing and construction jobs, and approximately 500 operating jobs in Kentucky or Ohio when the commercial plant is finished. USEC will announce the lead cascade site later this year.
"USEC's deployment of U.S. centrifuge technology will meet future worldwide demand for nuclear fuel, ensure domestic energy security, better serve customers and ensure USEC's long-term competitive position," said Spurgeon.
USEC Inc., a global energy company, is the world's leading supplier of enriched uranium fuel for commercial nuclear power plants.
CONTACT: USEC Inc.
Elizabeth Stuckle, 301/564-3399
Charles Yulish, 301/564-3391
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