Centrus Energy has signed a contract finalizing the terms of a competitively awarded $900 million task order from the US Department of Energy to support large scale production of High-Assay, Low-Enriched Uranium, known as HALEU, the company announced. The award is part of a multibillion-dollar capacity expansion at Centrus' American Centrifuge Plant in Piketon, Ohio, that will also include production of standard low enriched uranium.
The new fixed price enrichment contract, valued at more than $1.07 billion including all options, marks a shift from a demonstration scale HALEU program Centrus has operated since 2019 toward commercial scale production. Centrus completed the final 900 kilograms of HALEU required under its prior demonstration contract in mid-June, two weeks ahead of schedule, bringing the cumulative total produced under that agreement to more than 1,900 kilograms. The company expects its first new commercial scale capacity to come online by 2029.
Centrus President and Chief Executive Officer Amir Vexler said the government's investment in the contract will be matched several times over with billions of dollars in capital, including other non-dilutive funding and customer contracts, to restore large scale uranium enrichment capability in the United States.
The expansion is expected to support roughly 1,000 construction jobs and 300 new operating jobs in Ohio, while retaining 150 existing jobs at the Piketon site, along with 430 jobs at Centrus' centrifuge manufacturing plant in Oak Ridge, Tennessee. Centrus said the project is also underpinned by prepayment arrangements, foreign investment and long term commercial contracts for low enriched and HALEU supply.
Source: Centrus Energy Corp - https://www.centrusenergy.com/news/centrus-signs-contract-with-department-of-energy-for-900-million-award-intends-to-transition-haleu-production-cascade-to-commercial-operation/