USEC makes strides in securing $2B DOE loan guarantee for American Centrifuge Plant

Source: USEC Inc.

USEC Inc. (NYSE:USU) was informed by the U.S. Department of Energy (DOE) that it has largely completed its initial technical review of USEC’s application for the American Centrifuge Plant and is proceeding to the next stage of the loan guarantee process. DOE has provided USEC with a draft term sheet that will serve as a framework for discussions between USEC and the DOE.

“The Department’s decision to move forward reflects the significant progress we have made on both the technical and financial fronts in deploying the next generation of U.S. uranium enrichment technology,” said John K. Welch, president and CEO of USEC. “We are very pleased to receive DOE’s draft term sheet, which will provide a framework for further discussions. We look forward to working with DOE to continue advancing the project.” 

DOE transmitted to USEC a confidential draft term sheet for DOE’s issuance of a loan guarantee in support of USEC’s American Centrifuge Project. The terms and conditions in the draft term sheet provide a framework for the commencement of discussions on terms between USEC and DOE and may change as a result of due diligence. 

USEC is investing in advanced centrifuge technology to meet the energy needs of a growing U.S. population, and to provide a long-term, reliable and secure fuel source for the U.S. and international nuclear power plants. USEC believes that the AC100 centrifuge machine that USEC will deploy in the American Centrifuge Plant will be the most advanced centrifuge uranium enrichment machine in the world. 

As the only domestic enrichment facility using U.S. centrifuge technology, the American Centrifuge Plant will also help to rebuild U.S. nuclear manufacturing capabilities. This multi-year construction project would create nearly 8,000 U.S. jobs in ten states, with up to 4,000 in Ohio. 

USEC has worked for the past decade to significantly improve and update the original U.S. centrifuge technology design developed by the Department of Energy using modern materials and techniques such as carbon fiber and computer-controlled assembly and operations. To date, USEC has invested more than $1.8 billion in the American Centrifuge Project including construction of the commercial American Centrifuge Plant in Piketon, Ohio and for technology development, testing and manufacturing centers in Oak Ridge, Tenn. 

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