In March 2011, Centrus signed a multi-year supply contract with Techsnabexport (TENEX) of Russia to replace the low enriched uranium fuel supply that Centrus previously purchased under the Megatons-to-Megawatts™ program, which concluded at the end of 2013. The new contract took effect in December 2011.
The new contract assures Centrus’ continued access to this important source of supply of low enriched uranium fuel for its customers during a transition period until Centrus builds out its American Centrifuge Plant in southern Ohio.
This contract complements those on-going activities and is mutually beneficial to Centrus and TENEX. It helps Centrus meet customer commitments, continues Centrus’ long-standing supply relationship with TENEX, and strengthens Centrus’ financial position as it moves forward with the American Centrifuge.
- The Transitional Supply Contract is a multi-year contract to purchase about 21 million separative work units (SWU) through 2022 with a mutual option to purchase up to another 25 million SWU during that period.
- Centrus is purchasing the SWU contained in the low enriched uranium and deliver natural uranium to TENEX for the low enriched uranium’s uranium component.
- The low enriched uranium supplied by TENEX comes from Russia’s commercial enrichment activities rather than from downblending of excess Russian highly enriched uranium.
- The pricing terms for SWU under the contract are proprietary but are based on a mix of market-related price points and other factors.
Feasibility Study for U.S. Enrichment Plant
Centrus and TENEX expect to conduct a feasibility study to explore the possible deployment of an enrichment plant in the United States employing Russian gas centrifuge technology. As part of the feasibility study, ROSATOM, Centrus and TENEX will review international agreements, government approvals, licensing, financing, market demand and commercial arrangements.
Any decision to proceed with such a project would depend on the results of the feasibility study and would be subject to further agreement between the parties and their respective governments. In any event, such a project would not be deployed until after completion of the American Centrifuge Plant. This initiative is part of Centrus’ strategic approach in serving its customers in the uranium enrichment market.