Jan 6 (Reuters) - U.S.-based nuclear fuel supplier
Centrus Energy ( LEU ) said on Tuesday the U.S. Department of
Energy selected the company for a $900 million task order to
expand uranium enrichment capacity at its Piketon, Ohio, site,
as Washington moves to reduce reliance on Russian supply.
The award forms part of $2.7 billion in enrichment-related
task orders the Energy Department announced on Monday to three
companies -American Centrifuge Operating, a Centrus Energy unit,
General Matter and Orano Federal Services.
The agency said the awards aim to boost domestic uranium
enrichment over the next decade.
The award will help Centrus move to commercial-scale
production of High-Assay, Low-Enriched Uranium, or HALEU, a fuel
seen as vital for advanced nuclear reactors and energy systems.
"This award will catalyze additional private investment
and supports the prospect of further expansion as the market
continues to grow," said CEO Amir Vexler.
Centrus also said the DOE funding will support its
previously announced multibillion-dollar expansion at Piketon to
add capacity for low-enriched uranium, or LEU, used in existing
reactors.
The company said it has secured $2.3 billion in LEU
purchase commitments from utilities, including U.S. and export
customers.
In December last year, Centrus began domestic centrifuge
manufacturing at its Oak Ridge, Tennessee, plant to support
planned expansion, with the first new capacity expected online
in 2029.