Megatons to Megawatts Eliminates Material for 17,000 Nuclear Warheads
USEC Inc. (NYSE: USU) announced today that the Megatons to Megawatts?
program has eliminated 425 metric tons of highly enriched uranium, the
equivalent of 17,000 nuclear warheads, by converting it into fuel for
commercial nuclear reactors. Megatons to Megawatts is a 20-year,
commercially financed government-industry partnership in which 500
metric tons of Russian weapons-grade uranium is being downblended to low
enriched uranium for use as commercial reactor fuel.
'Megatons to Megawatts continues to be the most successful
non-proliferation program in history as it provides a reliable source of
fuel for nuclear power plants while making the world safer,? said John
K. Welch, USEC president and CEO.
'The program has served as an important element of USEC′s ability to
provide its utility customers with the nuclear fuel and technology
solutions they need to power the world through diverse, secure and
reliable supply offerings,? said Welch. 'Under this program, we have
built a strong long-term relationship with our Russian partners, which
we expect to continue through our new enrichment supply contract
starting in 2013 after the Megatons to Megawatts? program is
successfully finished.?
USEC, as executive agent for the U.S. government, and JSC
'Techsnabexport? (TENEX), acting for the Russian government, implement
the program, which is on track to complete the downblending of the
equivalent of 20,000 nuclear warheads into nuclear fuel by the end of
2013. USEC has paid the Russian Federation more than $7.2 billion for
the SWU (separative work units) component of the low enriched uranium
delivered since 1995. The fuel generated to date could produce enough
electricity to meet the demand from U.S. households for nearly five
years and has the energy equivalent of 10.4 billion barrels of oil, or
about 29 months of U.S. crude oil imports.
Building on the companies′ long-term relationship, USEC signed a new
contract with TENEX in March 2011 for the 10-year supply of low enriched
uranium that will provide USEC with continued access to Russian enriched
uranium, which currently constitutes about one-half of USEC′s supply
source. Under the terms of the new contract, the supply of this low
enriched uranium to USEC is expected to begin in 2013 and ramp up until
it reaches a level in 2015 that is approximately one-half the level
currently supplied under the Megatons to Megawatts program, with the
mutual option to increase the quantities up to the same level as under
that program. Unlike the Megatons to Megawatts program, the quantities
supplied under the new contract will come from Russia′s commercial
enrichment activities rather than from downblending of excess Russian
weapons material.
USEC Inc., a global energy company, is a leading supplier of enriched
uranium fuel and nuclear industry related services for commercial
nuclear power plants.
USEC Inc.
Media: Paul Jacobson, 301-564-3399
Investors: Steven
Wingfield, 301-564-3354