Centrus Energy Corp. (NYSE American: LEU) is providing an update on construction of the nation's first production facility for High-Assay, Low-Enriched Uranium (HALEU) in Piketon, Ohio.

"Despite the impact of the pandemic and the extraordinary steps we have taken to protect our workforce – including limiting the number of people who can be on the construction site at any one time – we have kept construction on track and expect to begin producing HALEU by next year," said Centrus President and CEO Daniel B. Poneman. "We believe this first-of-a-kind facility can play a critical role in meeting both government and commercial requirements for HALEU, powering America's nuclear leadership as the world turns to a new generation of advanced reactors and advanced nuclear fuels."

Under a 2019 contract with the U.S. Department of Energy's Office of Nuclear Energy, Centrus is licensing and constructing a cascade of sixteen AC100M centrifuges – a U.S. technology – to demonstrate production of HALEU. The Department stated the objective was to demonstrate a domestic technology so that it "could be used in any type of advanced reactors, including defense reactors that require the use of HALEU produced using U.S.- origin technology." The three year, $115 million, cost-shared contract runs through mid-2022.

HALEU is an advanced nuclear fuel material that is not commercially available in the United States today, but may be required in the future to fuel both existing and next generation reactors. For example, 9 out of the 10 reactor designs selected by the Department of Energy for its Advanced Reactor Demonstration Program are expected to operate on HALEU. HALEU, which is enriched so that the concentration of the U-235 isotope is higher than the 4-5 percent level typically used in existing reactors but lower than 20 percent, offers numerous advantages in reactor performance and a lower volume of waste produced.

Construction Update:

• Centrus submitted a license amendment request (LAR) to the U.S. Nuclear Regulatory Commission (NRC) last year to modify its commercial license so that it can enrich uranium up to 20 percent U-235. The NRC has accepted the LAR for technical review and that review is under way. The facility has an existing NRC license for production up to 10 percent and, if this amendment is approved, will become the first U.S. facility licensed for the full range of LEU and HALEU production up to 20 percent U-235.
• This month, Centrus completed assembly of all AC100M gas centrifuges. The centrifuges will undergo final preparations prior to being installed into the production cascade.
• Design and engineering work on the non-centrifuge or "balance of plant" systems is near completion and system construction is well under way. Auxiliary and support systems necessary for operation of the cascade are being installed.
• Upon NRC license amendment approval and successful completion of the NRC's Operational Readiness Review, Centrus expects to begin HALEU production by early 2022.
• Centrus has completed all required HALEU Demonstration Program milestones to date and remains on track to complete the remaining milestones on time and program completion no later than June 2022.
• To support the construction effort, Centrus has reactivated its domestic supply chain for centrifuge components and supporting equipment needed for the demonstration, and restored its capacity to manufacture centrifuge parts in its Oak Ridge, Tennessee, manufacturing facility.
• To date, the program has supported more than 200 direct jobs in Ohio and Tennessee, as well as supply chain jobs in Pennsylvania, North Carolina, New Mexico, Massachusetts, and other states.
• The workforce of centrifuge operators and support staff necessary for cascade operations is in place.
• Subject to the availability of funding and/or offtake contracts, Centrus can build additional centrifuges and support equipment to expand production in the facility in a modular fashion to meet whatever level of production is required for commercial and/or U.S. government purposes.

Centrus is releasing a number of unclassified photos from the construction effort, which can be found at this link: https://www.centrusenergy.com/news/HALEU-demonstration-program/

About Centrus Energy

Centrus Energy 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 and engineering capabilities, Centrus 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.