#United States #Centrus Energy #HALEU #uranium enrichment #Piketon

Centrus Energy's Ambitious Expansion Plan

Centrus Energy Corporation (NYSE: LEU) has recently announced a landmark achievement in securing a $900 million task order from the U.S. Department of Energy (DOE) to expand its uranium enrichment facility located in Piketon, Ohio. This monumental funding is set to enhance the facility's capabilities for commercial-scale production of High-Assay, Low-Enriched Uranium (HALEU), a critical component for the next generation of nuclear reactors.

The expansion project is poised to create a substantial economic impact, with estimates suggesting the addition of 1,000 construction jobs and 300 operational roles at the Piketon facility, alongside 150 existing jobs that will be retained. Furthermore, the initiative is expected to generate hundreds of direct employment opportunities at Centrus' manufacturing hub in Oak Ridge, Tennessee, and within a nationwide supplier network, resulting in thousands of indirect jobs throughout Ohio and beyond.

Amir Vexler, President and CEO of Centrus, emphasized the significance of this award, calling it a historic commitment to rejuvenating the U.S. nuclear fuel supply chain and reinstating the country's leadership in nuclear technology on a global scale. He extended gratitude to bipartisan congressional support, particularly highlighting the efforts made by key figures such as Senator Chuck Fleishmann and various congressional leaders from Ohio and Tennessee. Their advocacy enabled the milestone funding that will not only catalyze private investments but also lead to further expansion as market demands grow.

Centrus had previously established a contract with the Department of Energy in 2019, under which they began building a cascade of AC-100M advanced centrifuges for HALEU production. The operational capacity was achieved in 2023, and the facility continues to supply HALEU under federal contracts. This latest expansion will facilitate the construction of additional centrifuge cascades, increase production capacities for both LEU and HALEU, and address national security needs.

With $2.3 billion in purchase commitments already secured from utility companies, Centrus aims to meet not just domestic demand but also expectations from international customers, contingent on funding for new capacities. To support this promising growth trajectory, Centrus has successfully raised $1.2 billion in private capital through convertible note transactions, further bolstering its expansion initiatives.

The contract awarded by the DOE is designed as a fixed-price task order valued at $900 million, with additional options that could increase the full contract value to $1.07 billion depending on the production and delivery of HALEU. As Centrus gears up for this ambitious undertaking, they have begun ramping up their workforce and operational capabilities, with an expectation of the first new capacity becoming operational by 2029.

Centrus Energy has long positioned itself as a reliable supplier in the nuclear fuel sector, contributing to the growing demand for clean, carbon-free energy since its inception in 1998. The company has successfully provided over 1,850 reactor years of fuel, equivalent to more than 7 billion tons of coal.

Centrus is at the forefront of pioneering advancements in HALEU production and is dedicated to restoring the United States' uranium enrichment capabilities to meet clean energy and national security needs. As the energy landscape evolves, Centrus Energy stands ready to play a crucial role in shaping a sustainable future for nuclear energy in the United States.

For further information about Centrus Energy and its commitment to nuclear energy innovation, visit Centrus Energy's website.