– Oak Ridge National Laboratory exercises six-month option to
continue demonstration and operation of sole U.S. uranium enrichment
technology –
BETHESDA, Md.--(BUSINESS WIRE)--Jan. 23, 2015--
Centrus Energy Corp. (NYSE: LEU) announced today that UT-Battelle, LLC,
as operator of the U.S. Department of Energy’s Oak Ridge National
Laboratory (ORNL) has exercised its option to extend the American
Centrifuge Technology Demonstration and Operations Agreement (ACTDO
Agreement) by six months from March 31 to September 30, 2015. ORNL had
previously exercised an option to extend the agreement through March 31,
2015.
Centrus, which has invested more than $2.5 billion to develop the only
U.S.-origin uranium enrichment technology available for national and
energy security purposes, acts as a subcontractor to ORNL through its
wholly owned subsidiary American Centrifuge Operating, LLC. The national
laboratory has been tasked by the Department of Energy (DOE) to assist
in developing a path forward for achieving a reliable and economic
domestic uranium enrichment capability that supports national security.
The ACTDO Agreement requires the company to furnish technical reports
and data to ORNL from the cascade operations at Centrus’ Piketon, Ohio,
facility and from the core American Centrifuge research and technology
activities at Centrus’ Oak Ridge, Tenn. facilities.
“Our American Centrifuge team continues to make solid progress executing
the ACTDO agreement,” said Steven R. Penrod, vice president, American
Centrifuge. “We are operating a cascade of machines and demonstrating
this remarkable uranium enrichment technology that is capable of
supporting our country’s national security objectives. We appreciate
ORNL’s confidence in our team’s work through their support of this
six-month extension.”
Under the extended subcontract, Centrus will continue these operations
in Ohio and Tennessee. The FY2015 omnibus appropriations bill signed by
President Obama on December 16, 2014, provides $97.2 million in funding
for domestic uranium enrichment research, development and demonstration.
This appropriation provides funding for the continuation of the ACTDO
Agreement for the remainder of the federal government’s fiscal year
through September 30, 2015. A bipartisan consensus in Congress and the
administration recognized the importance of maintaining the American
Centrifuge technology for national and energy security purposes.
The ACTDO Agreement is a firm fixed-price contract. The agreement
provided two options to extend the contract for six months, each at a
price of $41.7 million for each option period. The total price of the
contract including options is approximately $117 million.
Pursuant to the FY2015 omnibus appropriations bill, DOE is currently
examining long-range options for meeting the government’s need for
enriched uranium to support national security. DOE is expected to report
its findings to Congress later this year. Centrus remains committed to
working closely with DOE and Congress to maintain and deploy this
technology to serve national security and energy security needs.
About Centrus Energy Corp.
Centrus Energy Corp. is a trusted supplier of enriched uranium fuel for
a growing fleet of international and domestic commercial nuclear power
plants. Centrus is working to deploy the American Centrifuge technology
for commercial needs and to support U.S. energy and national security.
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 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, uncertainty regarding our ability to commercially
deploy the American Centrifuge project; uncertainty regarding funding
for the American Centrifuge project and the potential for a
demobilization or termination of the American Centrifuge project if
additional government funding is not provided during the term of the
agreement with UT-Battelle, LLC, the management and operating contractor
for Oak Ridge National Laboratory (“ORNL”) for continued research,
development and demonstration of the American Centrifuge technology (the
“ACTDO Agreement”), including for any option periods, or upon completion
of such agreement; risks related to our ability to perform the work
required under the ACTDO Agreement at a cost that does not exceed the
firm fixed funding provided thereunder; uncertainty regarding the timing
and structure of the U.S. government program for maintaining a domestic
enrichment capability to meet national security requirements and our
role in such a program; the impact of actions we have taken (including
as a result of the reduction in scope of work under the ACTDO Agreement
as compared to the scope of work under the prior agreement signed with
DOE in June 2012 (the "Cooperative Agreement") or might take in the
future to reduce spending on the American Centrifuge project, including
the potential loss of key suppliers and employees and impacts to cost,
schedule and the ability to remobilize for commercial deployment of the
American Centrifuge Plant; the impact of enrichment market conditions,
increased project costs and other factors on the economic viability of
the American Centrifuge project without additional government support
and on our ability to finance the project and the potential for a
demobilization or termination of the project; uncertainty regarding our
ability to achieve targeted performance over the life of the American
Centrifuge Plant which could affect the overall economics of the
American Centrifuge Plant; uncertainty concerning the ultimate success
of our efforts to obtain a loan guarantee from DOE and/or other
financing for the American Centrifuge project or additional government
support for the project and the timing and terms thereof; the dependency
of government funding or other government support for the American
Centrifuge project on Congressional appropriations or on actions by DOE
or Congress; potential changes in our anticipated ownership of or role
in the American Centrifuge project, including as a result of our role as
a subcontractor to ORNL or as a result of the need to raise additional
capital to finance the project in the future; changes in U.S. government
priorities and the availability of government funding or support,
including loan guarantees; changes to, or termination of, our agreements
with the U.S. government; the impact of government regulation by DOE and
the U.S. Nuclear Regulatory Commission; 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, 2013 (“10-K”) and quarterly reports
on Form 10-Q. Revenue and operating results can fluctuate significantly
from quarter to quarter, and in some cases, year to year. Readers are
urged to carefully review and consider the various disclosures made in
this report and in our other filings with the Securities and Exchange
Commission 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 except as required by law.
Source: Centrus Energy Corp.
Centrus Energy Corp.
Media:
Jeremy Derryberry, 301-564-3392
or
Investors:
Steven
Wingfield, 301-564-3354
