Centrus CEO eyes fuel cycle 'void'

Monday, 10 February 2025

The company's 2024 full year revenue was USD442.0 million and gross profit USD111.5 million, up from revenue of USD320.2 million and gross profit of USD112.1 million in 2023. Vexler told investors that the final quarter of the year had been another strong one for the company as it continued with its high-assay, low-enriched uranium (HALEU) production activities, the second phase of which has now been extended to 30 June 2025, and secured new government contracts, as well as contracts and commitments.

"This progress comes amid rising momentum for the entire nuclear industry, from the void that will need to be filled starting in 2028 stemming from Congress's enriched uranium ban to mothballed reactors coming back online, as well as from technology companies looking to power tomorrow's data centres and AI technologies," he said.

The company's American Centrifuge Operating LLC subsidiary was last year selected as an awardee for federally funded contracts to support the enrichment and deconversion of high-assay, low-enriched uranium (HALEU) - needed to fuel advanced nuclear reactors - and domestically produced low-enriched uranium. Together, these contracts would be worth at least USD6 million, and possibly much more.

In November, Centrus announced plans to resume centrifuge manufacturing activities at its operations in Tennessee and invest an additional USD60 million over the next 18 months for the effort to support a potential large-scale expansion of uranium enrichment at its American Centrifuge Plant in Piketon, Ohio. But the ultimate dollar amount under the two HALEU contracts and the LEU contract, and the potential scale of the expansion of the company's operations, will depend on the scope of task orders that DOE may subsequently issue under the contracts for which it will compete with other awardees.

The contracts are backed by more than USD3.4 billion in appropriations that have been provided by Congress. These appropriations include USD700 million appropriated through the Inflation Reduction Act of 2022 - but US government executive agencies have now been directed to pause the distribution of all funding appropriated under the act for further review, following an order issued by President Donald Trump. The timing and outcome of such review is uncertain, the company said.

Waivers

Imports of low-enriched uranium (LEU) from Russia into the USA have been banned since 11 August under the Prohibiting Russian Uranium Imports Act, while the general licence of Rosatom subsidiary Tenex to export the material to the USA is currently rescinded by a Russian federal decree. This means Centrus requires waivers from the US Department of Energy (DOE) to import the material it needs to meet current orders, while Tenex must obtain a specific export licence from the Russian authorities in order for it to make each shipment to Centrus this year.

Centrus said it applied to the DOE in December for a third waiver for imports of LEU from Russia in 2026 and 2027 "to meet the expected requirements of the US nuclear industry". This is in addition to two waivers granted earlier in the year.

"Centrus has been informed that Tenex has received three specific licences, to date, which allow Tenex to export LEU to us," the company said. "Centrus will use the majority of this LEU to satisfy pending orders to a single customer on a delayed basis in reliance on its contractual rights." The Russian company has also informed Centrus that it plans to seek additional export licences to meet delivery obligations under other pending and future orders.