The USEC Inc. (NYSE:USU) American Centrifuge program in Piketon, Ohio,
has successfully passed an unannounced “station blackout” test that is
part of a program to prove the uranium enrichment technology’s technical
readiness. Technicians, without warning, interrupted the external power
supply to the commercial demonstration cascade facilities in order to
test the responsiveness of equipment, backup systems and personnel at
the uranium enrichment plant to a total loss of outside power. This test
is part of the cost-shared research, development and demonstration
(RD&D) program with the Department of Energy (DOE), designed to
demonstrate the technical readiness of the American Centrifuge to meet
national security needs.
“I am pleased to report that all of our personnel on duty and all of the
plant equipment, including the 120 centrifuges that were running with
full inventory of uranium hexafluoride gas, responded safely and within
expected parameters, with no unusual events or issues related to the
total loss of power,” said Paul Sullivan, vice president, American
Centrifuge and chief engineer. “This was a litmus test for us, and our
people and technology came through it with flying colors.”
Representatives from DOE and the Nuclear Regulatory Commission observed
the test, which took place December 18.
The successful loss of power test and the recently announced achievement
of key milestones for centrifuge reliability, cascade performance and
centrifuge manufacturing quality as part of the RD&D program are crucial
to demonstrating that the American Centrifuge, as America’s only
indigenous uranium enrichment technology, can effectively serve the
national and energy security needs of the United States. The recent
achievements included reaching 20 machine-years of operations at the
production-scale cascade of centrifuge machines. The formal test results
for the three recent milestones and the loss of power test will be
reviewed and certified by DOE. Previously, six other technical
milestones were successfully achieved as part of a June 2012 cooperative
agreement between USEC and DOE.
As previously disclosed, USEC and DOE are in discussions regarding
extension of the American Centrifuge RD&D program beyond January 15,
2014, subject to Congressional appropriations. USEC is currently working
with stakeholders, including DOE and Congress, to achieve an extension
of the RD&D program and to identify the best path forward for deployment
of the centrifuge technology.
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
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.
Copyright Business Wire 2013