BETHESDA, Md., Sept. 6,
2023 /PRNewswire/ -- Centrus Energy Corp (NYSE
American: LEU) announced today that it expects to begin
first-of-a-kind production of High-Assay Low-Enriched Uranium
(HALEU) in October 2023,
approximately two months ahead of schedule, at the American
Centrifuge Plant in Piketon,
Ohio.
"This will be the first new U.S.-owned uranium enrichment plant
to begin production since 1954," said Centrus President and CEO
Daniel B. Poneman. "What better way
to commemorate the 70th anniversary of President
Eisenhower's historic Atoms for Peace initiative than to restore a
domestic uranium enrichment capability that will support our energy
security and clean power needs, enable long-term national security
and nonproliferation goals, and generate great new jobs for
American workers."
"We are all so proud of our team for getting us to this point,
under budget and ahead of schedule," said Senior Vice President for
Field Operations Larry Cutlip. "This
will be a key milestone, not only in providing a critical component
of fuel for the next generation of reactors, but as the first step
toward converting Southern Ohio
into a vibrant hub that will strengthen our Nation's nuclear supply
chain and facilitate the accelerated deployment of the nuclear
energy increasingly demanded domestically and abroad to meet global
climate objectives."
Under a competitively-awarded, cost-share contract signed with
the U.S. Department of Energy in 2022, Centrus is required to begin
production of HALEU by the end of this year. In June, Centrus
announced it had successfully completed its operational readiness
reviews with the U.S. Nuclear Regulatory Commission (NRC) and
received NRC approval to possess uranium at the Piketon, Ohio site – the last major regulatory
hurdle prior to beginning production. Centrus is now conducting
final system tests and other preparations so that production can
begin in October.
HALEU is an advanced nuclear fuel required for most of the
next-generation reactor designs currently under development. The
capacity of the 16-centrifuge cascade that is expected to begin
enrichment operations in October will be modest – about 900
kilograms of HALEU per year – but with sufficient funding and
offtake commitments, Centrus could significantly expand production.
A full-scale HALEU cascade, consisting of 120 centrifuge machines,
with a combined capacity to produce approximately 6,000 kilograms
of HALEU per year (6 MTU/year), could be brought online within
about 42 months of securing the necessary funding. Centrus could
add an additional HALEU cascade every six months after that. That
would mobilize hundreds of union workers in Ohio to build and operate the plant and
support thousands of direct and indirect jobs across a nationwide
manufacturing supply chain.
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 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,
as amended, and the Private Securities Litigation Reform Act of
1995. In this context, forward-looking statements mean statements
related to future events, which may impact 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. These forward-looking statements are based on information
available to us as of the date of this news release and represent
management's current views and assumptions. Forward-looking
statements are not guarantees of future performance, events or
results and involve known and unknown risks, uncertainties, and
other factors, which may be beyond our control. 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 but are not limited to the
following which are, and will be, exacerbated by the COVID-19
pandemic and subsequent variants, and any worsening of the global
business and economic environment as a result; risks related to
component failure which prevent plant operations or HALEU
production; risks related to whether or when government funding or
demand for high-assay low-enriched uranium ("HALEU") for government
or commercial uses will materialize; risks related to (i) our
ability to perform and absorb costs under our agreement with the
U.S. Department of Energy ("DOE") to deploy and operate a cascade
of centrifuges to demonstrate production of HALEU for advanced
reactors (the "HALEU Operations Contract"), (ii) our ability to
obtain contracts and funding to be able to continue operations and
(iii) our ability to obtain and/or perform under other agreements;
risks that (i) we may not obtain the full benefit of the HALEU
Operation Contract and may not be able or allowed to operate the
HALEU enrichment facility to produce HALEU after the completion of
the HALEU Operation Contract or (ii) the HALEU enrichment facility
may not be available to us as a future source of supply; risks
related to the government's inability to satisfy its obligations
under the HALEU Operation Contract; risks related to uncertainty
regarding our ability to commercially deploy a competitive
enrichment technology; risks related to the fact that we face
significant competition from major producers who may be less cost
sensitive or are wholly or partially government owned; risks
related to the impact of government regulation and policies
including by the DOE and the U.S. Nuclear Regulatory Commission;
and other risks and uncertainties discussed in this and our other
filings with the SEC.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which apply only as of the date of this
news release. These factors may not constitute all factors that
could cause actual results to differ from those discussed in any
forward-looking statement. Accordingly, forward-looking statements
should not be relied upon as a predictor of actual results. Readers
are urged to carefully review and consider the various disclosures
made in this news release and in our other filings with the SEC,
including our Annual report on Form 10-K for the year ended
December 31, 2022, and our other
filings with the SEC that attempt to advise interested parties of
the risks and factors that may affect our business. We do not
undertake to update our forward-looking statements to reflect
events or circumstances that may arise after the date of this news
release, except as required by law.
Contacts:
Investors: Dan Leistikow at
LeistikowD@centrusenergy.com
Media: Lindsey Geisler at
GeislerLR@centrusenergy.com
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SOURCE Centrus Energy Corp.