Omnibus Appropriations Legislation Supports Continued Advances in U.S. Enrichment Technology
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Department of Energy has determined that American Centrifuge
technology is “most technically advanced and lowest risk option” to
meet national security requirements
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Funding for research, development and demonstration continues
Centrus Energy Corp. (NYSE MKT: LEU) announced today that the text of
2016 Omnibus Appropriations legislation under consideration by Congress
authorizes a total of $100 million in continued funding to the U.S.
Department of Energy to maintain and advance American leadership in
uranium enrichment technology. This includes $50 million in direct
appropriations, which the Department had previously stated it would use
to support critical centrifuge research and testing at Centrus’
facilities in Oak Ridge, Tennessee. The legislation also authorizes the
Department to continue operating America’s only industrial-scale cascade
of advanced centrifuges – located in Piketon, Ohio – by providing
authority to use an additional $50 million from other accounts in the
Department’s budget.
“This legislation reflects a broad, bipartisan consensus about the need
for a domestic uranium enrichment technology,” said Centrus President
and Chief Executive Officer Daniel
B. Poneman. “Centrus looks forward to continuing the essential work
we are doing to support America’s national security and is grateful to
the Members and staff from both parties and both houses of Congress who
have helped advance this funding through this legislation in support of
the President’s budget.”
“The research and testing capability in our Tennessee facilities help
define solutions that are validated at cascade scale at our Ohio
facility – which houses America’s only operating cascade of advanced
centrifuges,” said Steve Penrod, Centrus’ vice president for American
Centrifuge. “We have presented a number of alternatives that would
assure taxpayers continued benefits from Piketon, and we hope that the
Department acts quickly to use this additional funding authority. We
need to arrive at a decision as soon as possible so that we can avoid
dismantling a critical national security capability and complete the
important work that remains to be done there.”
Absent a decision to utilize the newly passed reprogramming authority,
Centrus will need to begin demobilization of the centrifuge activities
at Piketon early next year, including dismantling the centrifuge cascade
and implementing workforce reductions.
Background:
Since 2012, Centrus has worked jointly with the U.S. Department of
Energy to develop, build and demonstrate America’s only cascade of
advanced U.S. centrifuges in operation today. This work built upon more
than $2.6 billion that the company had already invested of its own funds
to develop and advance the technology. In its October 2015 report, the
Department found that this technology, called the American Centrifuge,
is the “most technically advanced and lowest risk option” for restoring
U.S. uranium enrichment capability to meet long-term national security
requirements.
Centrus has been operating the cascade in Piketon, Ohio, along with
state of the art centrifuge research and testing facilities in Oak
Ridge, Tennessee, staying on budget and meeting all technical and
program requirements since the joint effort began in 2012. The goal is
to further advance and demonstrate the centrifuge technology, under
actual operating conditions, so that it can be deployed when needed to
support U.S. national security requirements.
While some important work remains to be done, our team of scientists,
engineers, and technicians have validated the safety and effectiveness
of the machines. In addition, the team has been identifying,
implementing, and testing upgrades to the design to deliver further
improvements in cost, performance, and reliability. Centrus welcomes the
commitment of Congress and the Department of Energy to completing this
essential work, given the importance of the technology to national
security and energy security of the United States and its allies around
the world.
About Centrus Energy Corp.
Centrus Energy Corp. is a trusted supplier of enriched uranium fuel for
commercial nuclear power plants in the United States and around the
world. Our mission is to provide reliable and competitive fuel goods and
services to meet the needs of our customers, consistent with the highest
levels of integrity, safety, and security.
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