Centrus Energy Corp. expects the US military to become a new outlet for its enriched uranium as the company waits on a federal supply contract tied to national security requirements.
"The national security needs are real needs," Centrus investor relations head Neal Nagarajan said Thursday during a meeting at Bloomberg's headquarters in New York. "And we are the only commercially viable option right now for the national security sector."
Chief Executive Officer Amir Vexler said he anticipates a US government contract to supply nuclear fuel for defense will be finalized this year. The Department of Energy issued a notice of intent in October to award the sole-source contract to Centrus, the only US-owned company that produces enriched uranium for reactors.
Vexler said the agreement could cover fuel for US Navy vessels or for small reactors the military plans to deploy at bases. The supply could also support production of tritium, a material used in nuclear weapons, though he stressed that end uses would be determined by the Energy Department's National Nuclear Security Administration. The agency did not immediately provide comment.
Demand for enriched uranium has been rising from utility owners and power providers seeking fuel for reactors that serve growing data center loads, a trend that has also renewed interest in new plant construction.
Centrus is building an enrichment facility in Ohio, a multibillion-dollar project expected to begin commercial production in 2029. The plant will supply fuel for conventional nuclear plants along with a more potent variety for next-generation reactors. Vexler said restrictions on using uranium sourced abroad for US military applications give the Maryland-based firm an edge. "You basically have to be an American company," he said.
Source: MINING.COM - https://www.mining.com/web/centrus-sees-us-military-as-key-market-for-its-enriched-uranium/