#United States #Centrus Energy #Bethesda #LEU #DOE

Centrus Energy's Major Recognition

Centrus Energy Corporation (NYSE American: LEU) recently announced a significant achievement for its subsidiary, the American Centrifuge Operating, LLC (ACO). The company has received a prestigious award from the U.S. Department of Energy aimed at enhancing the domestic production capabilities of Low-Enriched Uranium (LEU). This award marks the third occasion that Centrus has been selected under the Department's series of solicitations aimed at restoring the nation's nuclear fuel supply.

Centrus Energy's President and CEO, Amir Vexler, expressed pride in the company's role in rejuvenating America's uranium enrichment capabilities. He emphasized the importance of American technology and labor in this initiative. The aim is to implement a public-private partnership that would increase the enrichment capacity in Ohio. This step is crucial for meeting both commercial and national security requirements for enriched uranium.

The contract awarded to ACO comes with a minimum value of $2 million, with the potential for the total amounts to reach as high as $3.4 billion over a decade. The actual funds allocated will depend on task orders issued by the Department of Energy, indicating a significant potential scale for the expansion of operations.

On top of this recent achievement, Centrus announced plans to resume the manufacturing of centrifuges, expanding its facility in Tennessee while preparing its location in Ohio for the integration and testing of new centrifuges. Centrus plans to invest approximately $60 million over the next 18 months to ramp up production and meet both commercial and governmental demands swiftly.

ACO intends to manufacture all centrifuge components in the United States, utilizing domestic engineering within a supply chain of 14 major American-owned suppliers spread across 13 states. The ACO's technology marks a significant alternative, as the only other operational Western centrifuge technology is based in the Netherlands.

Apart from this current award, ACO was also named among other awardees in October to produce High-Assay Low-Enriched Uranium (HALEU) for next-generation reactors. Earlier in the month, Centrus was selected to convert HALEU from uranium hexafluoride (UF6) to more usable forms, which is vital in the nuclear fuel production process.

About Centrus Energy

Centrus Energy is a prominent supplier of nuclear fuel and services vital for the nuclear power industry in the U.S. Since its establishment in 1998, the company has supplied over 1,850 reactor years of fuel to its utility customers—equivalent to a remarkable 7 billion tons of coal.

Centrus is at the forefront of developing High-Assay Low-Enriched Uranium while working to reinstate substantial uranium enrichment capabilities across the nation. The move is crucial to help meet increasing demands in the clean energy sector as well as maintaining energy security and national defense. For more information, visit Centrus Energy's website.

Looking Ahead

Though Centrus's future objectives appear promising, it is essential to recognize that the plans involve many factors and uncertainties. As outlined in their recent press release, various risks could influence the potential success of future operations, particularly regarding dependency on government contracts and external market dynamics.

In conclusion, the recent award from the U.S. Department of Energy signifies a crucial development for Centrus Energy in restoring and enhancing America's nuclear fuel supply chain, amid growing needs for clean energy solutions and advocating for national security through self-sufficiency in uranium enrichment.