Centrus Energy Awarded $900 Million to Expand Uranium Enrichment Operations in Ohio
Centrus Energy (NYSE: LEU) has received a transformative $900 million task order from the U.S. Department of Energy aimed at expanding its uranium enrichment facility located in Piketon, Ohio. This funding will facilitate the commercial-scale production of High-Assay, Low-Enriched Uranium (HALEU) and is expected to bolster Centrus' previously announced multi-billion dollar expansion efforts at the site.
Job Creation and Economic Impact
The expansion project is poised to create substantial employment opportunities within the region, supporting thousands of American jobs, including:
- 1,000 construction jobs and 300 new operating positions in Ohio.
- Retention of 150 existing jobs at the Piketon plant.
- Hundreds of new direct jobs at Centrus' centrifuge manufacturing plant in Oak Ridge, Tennessee.
- Thousands of indirect jobs throughout Ohio, Tennessee, and beyond.
A Vision for America's Nuclear Future
Centrus President and CEO Amir Vexler emphasized the strategic importance of the funding, stating, "This award represents a historic commitment to revitalizing America's nuclear fuel supply chain and reclaiming American nuclear leadership on the global stage." He acknowledged bipartisan support for the initiative, thanking various Congressional leaders and governors for their advocacy.
This funding was made possible by a bipartisan package approved in 2024 led by House Energy and Water Appropriations Subcommittee Chairman Chuck Fleishmann, who has been a crucial supporter of Centrus' efforts.
Technological Advancements and Production Capacity
Since entering into a contract with the Department of Energy in 2019, Centrus has made significant strides in advancing its HALEU production capabilities. The AC-100M advanced centrifuges were constructed to demonstrate HALEU production, which is essential for the next generation of reactors. The facility commenced operations in 2023 and is actively producing HALEU under its DOE contract.
As part of its ambitious expansion plans, Centrus intends to:
- Build additional centrifuge cascades to enhance HALEU production capacity.
- Produce LEU feed material for HALEU cascades and additional quantities of LEU for the commercial market.
- Address national security needs through increased uranium enrichment capabilities.
The company has already secured $2.3 billion in LEU purchase commitments, contingent upon the successful financing of the new capacity. Furthermore, Centrus raised over $1.2 billion in private capital through convertible note transactions to support these initiatives.
Future Prospects and Contract Finalization
Centrus and the Department of Energy are in the process of finalizing a contract that will detail the award. In preparation for the expansion, Centrus is proactively expanding its workforce and manufacturing capabilities, with recent launches in domestic centrifuge production enhancing its operational readiness.
The initial new capacity is anticipated to come online by 2029, marking a significant milestone in the company's growth trajectory. The total project value, inclusive of options for additional work, could reach up to $1.07 billion.
About Centrus Energy
Centrus Energy stands as a trusted supplier of nuclear fuel and services in the industry, addressing the increasing demand for clean, carbon-free energy. Since its inception in 1998, the company has provided over 1,850 reactor years' worth of fuel, equivalent to more than 7 billion tons of coal.
By pioneering HALEU production, Centrus is spearheading efforts to restore America's uranium enrichment capabilities, crucial for enhancing energy security and meeting future energy demands.
Forward-Looking Statements
This announcement contains forward-looking statements as defined by applicable securities laws. These statements concern future events that may affect Centrus Energy's operations or financial performance. Such statements are subject to risks and uncertainties that may lead actual results to differ.