Centrus Completes D&D Project for U.S. DOE on Time, on Budget
BETHESDA, Md., Oct. 9, 2019 /PRNewswire/ -- Centrus Energy Corp. (NYSE American: LEU) today announced that it successfully completed decontamination and decommissioning (D&D) of the U.S. Department of Energy's K-1600 facility in Oak Ridge, Tennessee, on time and on budget. Centrus finished the $15 million project in just one year.
"I'm pleased our team was able to deliver the results the Department expected on a very short timetable," said Centrus President and CEO Daniel B. Poneman. "This success demonstrates our broad technical capabilities and reflects our strategy of diversifying the business by offering advanced engineering, manufacturing, and D&D services."
Centrus had leased K-1600 from DOE since 2002 to test and demonstrate the world's most advanced uranium enrichment centrifuges, while conducting centrifuge manufacturing, engineering, and design at its state-of-the-art Technology and Manufacturing Center (TMC) in Oak Ridge. In 2018, however, Centrus obtained a license from the State of Tennessee to allow for future testing activities at TMC. This obviates the need to continue using K-1600 and allows the company to consolidate future centrifuge development efforts into a single, Centrus-owned facility.
The Department awarded Centrus a $15 million Work Authorization on September 27, 2018, to prepare K-1600 for demolition. The facility is one of the last remaining legacy structures on the 2,200-acre site of the World War II-era K-25 uranium enrichment plant, now known as the East Tennessee Technology Park. Decontaminating and decommissioning K-1600 is part of a larger effort by DOE to clean up the site so that it can be reused for commercial and industrial purposes by the local community.
Centrus' D&D work at K-1600 included removal and disposition of all equipment and materials to render the facility non-radiologically contaminated and non-possessing (i.e. unclassified). As a result, the Department will be able to turn the facility over to a contractor to demolish the building.
About Centrus Energy
Centrus is a trusted supplier of nuclear fuel and services for the nuclear power industry. Centrus provides value to its utility customers through the reliability and diversity of its supply sources - helping them meet the growing need for clean, affordable, carbon-free electricity. Since 1998, the Company has provided its utility customers with more than 1,750 reactor years of fuel, which is equivalent to 7 billion tons of coal.
With world-class technical capabilities, Centrus offers turnkey engineering and advanced manufacturing solutions to its customers. The Company is also advancing the next generation of centrifuge technologies so that America can restore its domestic uranium enrichment capability in the future. Find out more at www.centrusenergy.com.
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", "should", "could", "would" or "may" 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: risks related to our significant long-term liabilities, including material unfunded defined benefit pension plan obligations and postretirement health and life benefit obligations; the continued impact of the March 2011 earthquake and tsunami in Japan on the nuclear industry and on our business, results of operations and prospects; the impact and potential extended duration of the current supply/demand imbalance in the market for low-enriched uranium ("LEU"); risks associated with our reliance on third-party suppliers to provide essential products and services to us; the impact of government regulation including by the U.S. Department of Energy ("DOE") and the U.S. Nuclear Regulatory Commission; uncertainty regarding our ability to commercially deploy competitive enrichment technology; risks and uncertainties regarding funding for the American Centrifuge project and our ability to perform under our agreement with DOE to demonstrate the capability to produce high assay low enriched uranium ("HALEU"); the potential for further demobilization or termination of the American Centrifuge project; risks related to our ability to perform and receive timely payment under agreements with the DOE, including risk and uncertainties related to the ongoing funding of the government and potential audits; the competitive bidding process associated with obtaining a federal contract; risks related to our ability to perform fixed-price contracts, including the risk that costs could be higher than expected; risks that we will be unable to obtain new business opportunities, achieve market acceptance of our products and services or that products or services provided by others will render our goods or services obsolete or noncompetitive; risks that we will not be able to timely complete the work that we are obligated to perform; the competitive environment for our products and services; changes in the nuclear energy industry; the impact of financial market conditions on our business, liquidity, prospects, pension assets and insurance facilities; the risks of revenue and operating results fluctuating significantly from quarter to quarter, and in some cases, year to year; and other risks and uncertainties discussed in this and our other filings with the Securities and Exchange Commission, including under Part 1. Item1A - "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2018 and quarterly reports on Form 10-Q.
Contact:
Dan Leistikow (301) 564-3399
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SOURCE Centrus Energy Corp.
