Department of Energy Prepared to Extend American Centrifuge RD&D Program Three Months
USEC Inc. (NYSE:USU) was informed today by the United States Department of Energy (DOE) that it is prepared to extend the American Centrifuge cooperative research, development and demonstration (RD&D) program for three months beyond January 15, 2014, subject to Congressional appropriations.
DOE and USEC will share costs of the program on an 80-percent/20-percent basis for a total funding level of approximately $10 million per month.
USEC will continue working closely with stakeholders, including the DOE and Congress, to achieve the three month extension and identify the best path forward for the technology.
The American Centrifuge is the only uranium enrichment process employing U.S. domestic technology that can be used for national security purposes. It is also an important potential contributor to the country’s energy security, non-proliferation policy goals, and nuclear high-tech manufacturing industry. Earlier this month it achieved three important milestones as part of the RD&D program that was originally proposed by DOE in 2011. A full production-scale cascade of 120 centrifuge machines achieved 20 machine-years of operations at commercial plant specifications.
USEC Inc., a global energy company, is a leading supplier of enriched uranium fuel for commercial nuclear power plants.
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” and other words of similar meaning. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For USEC, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include, but are not limited to: uncertainty regarding the economics of and continued funding for the American Centrifuge project and the potential for a demobilization or termination of the project; our ability to reach an agreement with DOE and funding for a potential three month extension of the current research, development and demonstration (“RD&D”) program and the potential for demobilization or termination of the American Centrifuge project; our ability to satisfy the conditions to the announced restructuring plan support agreement with certain of our noteholders and complete the proposed restructuring, including our ability to reach a mutually acceptable agreement with the Babcock & Wilcox Investment Company and Toshiba Corporation regarding the treatment of their investment and their willingness to make additional investments in the American Centrifuge project, and the potential for termination of the restructuring plan support agreement including as a result of a failure to reach an agreement with DOE regarding a sufficient extension of the RD&D program; the impact of a potential de-listing of our common stock on the NYSE; the impact of enrichment market conditions, increased project costs and other factors on the economic viability of the American Centrifuge project without additional government support and on our ability to finance the project and the potential for a demobilization or termination of the project; limitations on our ability to provide any required cost sharing under the RD&D program; uncertainty concerning the ultimate success of our efforts to obtain a loan guarantee from DOE and other financing for the American Centrifuge project or additional government support for the project and the timing and terms thereof; potential changes in our anticipated ownership of or role in the American Centrifuge project, including as a result of the need to raise additional capital to finance the project; the impact of actions we have taken or may take to reduce spending on the American Centrifuge project, including the potential loss of key suppliers and employees, and impacts to cost and schedule; the potential for DOE to seek to terminate or exercise its remedies under the RD&D cooperative agreement or June 2002 DOE-USEC agreement; changes in U.S. government priorities and the availability of government funding, and other risks and uncertainties discussed in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update our forward-looking statements except as required by law.
Contact
USEC Inc.
Investors: Steven Wingfield, 301-564-3354
Media: Paul Jacobson, 301-564-3399