-20-year energy and nonproliferation program converted Russian
nuclear warhead material into commercial nuclear fuel-
BETHESDA, Md.--(BUSINESS WIRE)--Dec. 10, 2013--
USEC Inc. (NYSE: USU) today shipped the last cylinders of low enriched
uranium under the Megatons
to Megawatts program from the Port of Baltimore to its facility in
Paducah, Ky. Since 1995, USEC has purchased more than 14,000 metric tons
of low enriched uranium downblended from 500 metric tons of
weapons-grade uranium that has been extracted from the equivalent of
20,000 Russian nuclear warheads.
“Together, USEC and Techsnabexport (TENEX), working in close partnership
with our respective governments in the United States and Russia, have
fueled the production of clean, reliable electricity through an historic
nonproliferation program that USEC funded at no cost to taxpayers,” said
John Welch, USEC’s president and chief executive officer. “Over the past
two decades, our commercial business operations have greatly advanced
the strategic policy goals of our national governments, benefitting all
mankind with a safer, cleaner world.”
The Megatons to Megawatts program is a unique, commercially financed
government-industry partnership in which bomb-grade uranium from
dismantled Russian nuclear warheads was downblended into low enriched
uranium and purchased by USEC to fuel American nuclear power plants.
This commercial program executed a 1993 government-to-government
agreement between the United States and Russia to reduce excess supplies
of highly enriched uranium in the former Soviet Union. In implementing
this multi-billion dollar program, USEC, as executive agent for the U.S.
government, paid for the downblended uranium at no cost to taxpayers
through a contract with TENEX, as executive agent for the Russian
government. Under this contract, USEC purchased the low enriched uranium
from Russia with USEC corporate funds, adding this supply of fuel to its
inventory for sale to its utility customers.
“Our program’s success resulted from strong bilateral cooperation and
dedication to the effective execution of the contract over the long
term,” Welch said. “Our companies have worked together to implement the
contract on terms that benefit both countries while providing America’s
nuclear reactors with competitively priced nuclear fuel. To that end,
USEC’s long-term contracts with American utilities supported the
contract and provided stability to the program.”
Since the late 1990s, nearly 10 percent of all the electricity generated
in the United States has been fueled by this downblended uranium. This
nuclear fuel could power the United States for nearly two years. The
program has safely completed more than 250 shipments of fuel between
Russia and the United States. The final shipment will be delivered to
USEC’s facility in Paducah and will be incorporated into USEC’s
inventory for future delivery to customers.
To verify that the material used in the program came from Russian
warheads and became fuel for commercial nuclear power plants, the
National Nuclear Security Administration, for the United States, and
ROSATOM, for the Russian Federation, supported the implementation of the
commercial program. Both countries cooperated to verify the source,
production and end use of this nuclear fuel material over the program’s
lifetime. Close coordination on the government-to-government level
ensured the smooth implementation and success of the commercial program.
Follow-On Contract Provides Deliveries of Commercial Russian Supply
through 2022
In 2011, USEC and TENEX entered into a multi-year contract for the
supply of low enriched uranium that will build on USEC’s long-term
relationship with TENEX. Under the terms of the new contract, the supply
of low enriched uranium to USEC began in 2013 and will ramp up until it
reaches a level in 2015 that is approximately one-half the level
supplied by TENEX to USEC under the Megatons to Megawatts program. The
new contract includes a mutual option to increase the quantities up to
5.5 million SWU (separative work units) per year, the same level as the
Megatons to Megawatts program.
Unlike the Megatons to Megawatts program, the quantities supplied under
the new contract will come from Russia’s commercial enrichment
activities rather than from downblending of Russian weapons material.
Deliveries under the contract are expected to continue through 2022.
USEC is purchasing the SWU contained in the low enriched uranium and
delivers natural uranium to TENEX for the uranium component of the low
enriched uranium.
Background: Warheads to Fuel
The conversion of highly enriched uranium from Russian nuclear warheads
into low enriched uranium for use in fabricating fuel for commercial
nuclear power reactors took place at several nuclear facilities in
Russia. The process began with the removal of the warheads and their
highly enriched uranium metal components from strategic and tactical
nuclear missiles. The highly enriched uranium warhead components were
machined into metal shavings that were then heated and converted to a
highly enriched uranium oxide, and any contaminants were chemically
removed. The highly enriched uranium oxide was converted to highly
enriched uranium hexafluoride, a compound that becomes a gas when
heated. This highly enriched uranium hexafluoride was introduced into a
gaseous process stream where it was mixed with very low enriched uranium
material and diluted to less than 5 percent concentration of the
fissionable uranium-235 isotope, a level too low to be of any military
value but ideal for producing electric power.
The newly produced low enriched uranium was checked to ensure it met
commercial specifications and then transferred to 2.5-ton steel
cylinders, enclosed in protective shipping containers and sent to a
storage and handling facility in St. Petersburg, Russia. USEC took
possession of the containers in St. Petersburg and had them delivered to
its uranium enrichment plant in Kentucky. At USEC’s facility, the low
enriched uranium was tested again to ensure that it met appropriate
commercial and customer specifications. USEC then shipped the
warhead-derived low enriched uranium to U.S. fuel fabricators, who
converted it into uranium oxide pellets and fabricated them into fuel
assemblies. The assemblies are delivered to USEC’s utility customers as
a source of fuel for their nuclear reactors. It is expected that the low
enriched uranium delivered to USEC under this program will continue to
be supplied to fabricators from USEC’s inventories over the next several
years.
USEC Inc., a global energy company, is a leading supplier of enriched
uranium fuel for commercial nuclear power plants.
Forward-Looking Statements
This press 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” and other words of similar
meaning. Forward-looking statements by their nature address matters that
are, to different degrees, uncertain. For USEC, 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: risks related to the ongoing transition
of our business; our dependence on deliveries of low enriched uranium
from Russia under the new commercial supply agreement with Russia and
limitations on our ability to import the Russian low enriched uranium we
buy under the Russian commercial supply agreement into the United States
and other countries; risks related to our ability to sell our fixed
purchase obligations under the Russian commercial supply agreement; and
other risks and uncertainties discussed in our filings with the
Securities and Exchange Commission, including our Annual Report on Form
10-K and quarterly reports on Form 10-Q that are available at www.usec.com.
We do not undertake to update our forward-looking statements except as
required by law.
Source: USEC Inc.
USEC Inc.
Media: Paul Jacobson, 301-564-3399
Investors: Steven
Wingfield, 301-564-3354
