BETHESDA, Md.--(BUSINESS WIRE)--Mar. 28, 2018--
Centrus Energy Corp. (NYSE American: LEU), an experienced nuclear fuel
technology company, has signed a services contract with X Energy, LLC
(X-energy) to support the design of a facility to produce advanced
nuclear fuel. The contract builds upon a memorandum of understanding the
companies signed in September 2017 to collaborate toward production of
fuel for advanced nuclear reactors.
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Under the agreement, Centrus will provide X-energy, a pioneering reactor
technology and fuel company, with technical expertise and resources to
support conceptual design of a facility to produce X-energy’s uranium
oxycarbide (UCO) tristructural isotropic (TRISO) fuel forms. This effort
includes nuclear criticality safety analysis, manufacturing equipment
layout and infrastructure design, and conceptual development of fuel
form transport packages. Centrus will also provide facility space to
X-energy at Centrus’ Technology and Manufacturing Center in Oak Ridge,
Tenn. TRISO fuel forms can meet the requirements for the X-energy Xe-100
high temperature gas cooled reactor, as well as for other advanced
nuclear reactor technologies being developed around the world.
The services contract supports the companies’ previously announced joint
effort to prepare a deployment plan for X-energy’s TRISO fuel
technology; design a cost-effective, highly automated fuel manufacturing
process line; and seek funding for a future commercial fuel production
facility. With a view towards the potential formation of a joint entity
to perform these activities, on March 26, 2018, the companies also
entered into an additional Memorandum of Understanding, which defines
each party’s relative contributions to be considered in the formation of
such an entity.
“Establishment of a U.S. domestic capability to produce qualified, high
assay low enriched uranium-based fuel forms has become urgent,” states
Harlan Bowers, X-energy President. “Advanced reactor companies must have
a reliable fuel source within the next six years to enable
first-of-a-kind deployment by the mid-to late-2020s. Through partnership
with Centrus, we intend to have our TRISO-X Fuel Fabrication Facility
constructed and producing fuel before 2025.”
“Our work with X-energy will build the foundation for deploying an
American fuel source for advanced reactors,” said Daniel Poneman,
president and CEO of Centrus. “By performing their fuel work in our Oak
Ridge Technology and Manufacturing Center, X-energy will be able to
leverage our specialized workforce, equipment, and facilities to enhance
their competitive advantage in the rapidly evolving advanced reactor
market.”
About X-energy
X-energy is an advanced nuclear reactor design and TRISO-based fuel
fabrication company. X-energy is developing an innovative nuclear power
plant design solution. The Xe-100 is a 200MWt (76MWe) high temperature
gas-cooled pebble bed modular reactor that requires less time to
construct, uses factory-produced components, cannot melt down, and is
"walk-away" safe without operator intervention. In concert with Xe-100
design, X-energy is actively producing TRISO-based fuel forms and will
implement pilot scale manufacturing capacities starting in 2018. Reactor
and fuel activities are supported by $34M in private investment and a
five-year $53MU.S. Department of Energy Advanced Reactor Concept
Cooperative Agreement award. Twitter: @xenergynuclear; Facebook: facebook.com/xenergynuclear;
www.x-energy.com
About Centrus Energy
Centrus Energy 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 and engineering
capabilities, Centrus 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 - 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; 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 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 U.S. Nuclear Regulatory Commission;
potential strategic transactions, which could be difficult to implement,
disrupt our business or change our business profile significantly; 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 this and our other filings with the
Securities and Exchange Commission , including our Annual Report on Form
10-K for the year ended December 31, 2017. We do not undertake to update
our forward-looking statements except as required by law.
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Source: Centrus Energy Corp.
X-energy
Melanie White Lyons, 301-363-2839
mlyons@x-energy.com
or
Centrus
Jeremy
Derryberry, 301-564-3392
derryj@centrusenergy.com
