BETHESDA, Md.--(BUSINESS WIRE)--Apr. 3, 2013--
USEC Inc. (NYSE:USU) has completed construction of its American
Centrifuge commercial demonstration cascade. The 120-machine cascade is
the centerpiece of a cooperative research, development and demonstration
program (RD&D) with the U.S. Department of Energy (DOE). This program is
intended to reduce technical risks and improve the future prospects of
commercial deployment of the American Centrifuge technology.
USEC Inc. has completed construction of its American Centrifuge commercial demonstration cascade including installation of 120 centrifuges. (Photo: USEC Inc.)
“Completing construction of the demonstration cascade is a major step
toward achieving the objectives of the RD&D program,” said Glenn
Strausser, director of engineering, procurement and construction for the
American Centrifuge project. “We completed cascade construction with an
outstanding safety record, and the RD&D program remains on schedule and
within budget. The experience we gained will be invaluable as we move
forward with deployment of the full commercial plant.”
“This was a complete team effort between all project areas,” said Dan
Rogers, general manager of American Centrifuge Plant operations. “We
look forward to completing systems testing and beginning operations to
confirm the technical readiness of the American Centrifuge technology.”
Construction activities included preparing the cascade for machine
installation, making physical improvements to the facilities, removing
existing cascade support equipment and installing new infrastructure
systems. The plant operations group has also populated the cascade with
its full complement of 120 centrifuges. With cascade construction
complete, the project team will continue system testing in preparation
for formal integrated systems testing required before the cascade
becomes operational later this year.
Cascade construction involved more than 300 workers, including many
local union tradesmen who worked more than 150,000 man-hours without a
recordable injury or lost-time accident. The RD&D program as a whole
supports more than 1,100 jobs and utilizes more than 160 companies from
28 states.
Workers completed more than 700 structural welds, many of which were
classified as “Quality Level 1,” requiring rigorous effort and
oversight. Electricians installed 4,000 feet of cable tray, more than 5
miles of conduit and more than 60 miles of cables.
Background
USEC and DOE are executing a $350 million cooperative RD&D program to
confirm the technical readiness of the American Centrifuge technology,
the next-generation U.S. uranium enrichment technology. The program is
within budget and on schedule to be completed in December 2013.
The RD&D program supports building, installing, operating, and testing
commercial plant support systems and a 120-machine cascade that would be
incorporated in the full commercial plant of 96 identical cascades in
Piketon, Ohio.
The cooperative agreement between USEC and DOE defines the scope,
funding and technical goals for the program. The total investment in the
program will be up to $350 million, with DOE providing 80 percent, and
USEC providing 20 percent of the total. The RD&D program is currently
funded through June 15, 2013. The recently enacted FY2013 continuing
appropriations resolution included additional funding for continued work
on the RD&D program at an annual rate of $110 million, which is expected
to fund the RD&D program through September 30, 2013. The Company will
continue to work with Congress and the administration to fund the RD&D
program through December 2013 to achieve the remaining program
milestones.
An informational video on the RD&D program can be accessed at http://www.usec.com/video/american-centrifuge-investing-americas-energy-future.
You can also view photographs of the full 120-machine demonstration
cascade at http://www.usec.com/media/photo-gallery.
USEC Inc., a global energy company, is a leading supplier of enriched
uranium fuel for commercial nuclear power plants.
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” 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: uncertainty regarding the timing,
amount and availability of additional funding for the research,
development and demonstration (“RD&D”) program and the dependency of
government funding on Congressional appropriations; restrictions in our
credit facility on our spending on the American Centrifuge project and
the potential for us to demobilize the project; limitations on our
ability to provide any required cost sharing under the RD&D program;
uncertainty concerning our ability through the RD&D program to
demonstrate the technical and financial readiness of the centrifuge
technology for commercialization; uncertainty concerning the ultimate
success of our efforts to obtain a DOE loan guarantee and other
financing for the American Centrifuge project and the timing and terms
thereof; potential changes in our anticipated ownership of or role in
the American Centrifuge project, including as a result of the need to
raise additional capital to finance the project; the impact of actions
we have taken or may take to reduce spending on the American Centrifuge
project, including the potential loss of key suppliers and employees,
and impacts to cost and schedule; the impact of delays in the American
Centrifuge project and uncertainty regarding our ability to remobilize
the project; changes in U.S. government priorities and the availability
of government funding, including loan guarantees; and other risks and
uncertainties discussed in our filings with the Securities and Exchange
Commission, including our annual report on Form 10-K, which is available
on our website at www.usec.com.
We do not undertake to update our forward-looking statements except as
required by law.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130403005664/en/
Source: USEC Inc.
USEC Inc.
Media: Paul Jacobson, 301-564-3399
Investor
Relations: Steven Wingfield, 301-564-3354
