BWX Technologies, Inc. (NYSE: BWXT) announced today that its Nuclear Fuel Services, Inc. (NFS) subsidiary was awarded a contract valued at $505 million for the downblending of 20.2 metric tons of highly enriched uranium (HEU) to produce low enriched uranium (LEU) suitable for use as commercial nuclear reactor fuel and for national defense programs.
NFS will provide downblending services to the Tennessee Valley Authority, with work expected to begin in early 2019 and run through mid-2025. The work supports the Department of Energys National Nuclear Security Administrations (NNSA) defense programs objectives. Under prior contracts, NFS has downblended about 70 metric tons of HEU for the NNSA. This is the largest single downblending contract in NFS history.
We are exceedingly pleased to partner with TVA to perform this critical work for the NNSA, said Rex Geveden, BWXTs president and chief executive officer. This contract award speaks to the truly unique capabilities in nuclear materials processing at BWXT and edifies one of our key lines of business.
Downblending is a process in which HEU is mixed with natural uranium to make LEU, which can then be used for a variety of commercial and national defense purposes. BWXT has been downblending HEU since 1995, when it was selected by the U.S. Government to downblend a stockpile of HEU as part of Project Sapphire.
Forward Looking Statements
BWXT cautions that this release contains forward-looking statements, including statements relating to the performance, timing, impact and value, to the extent contract value can be viewed as an indicator of future revenues, of the downblending contract. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract and delays. If one or more of these or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, please see BWXTs annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. BWXT cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
Headquartered in Lynchburg, Va., BWX Technologies, Inc. (NYSE:BWXT) is a leading supplier of nuclear components and fuel to the U.S. government; provides technical and management services to support the U.S. government in the operation of complex facilities and environmental remediation activities; and supplies precision manufactured components, services and fuel for the commercial nuclear power industry. With approximately 6,250 employees, BWXT has 11 major operating sites in the U.S. and Canada. In addition, BWXT joint ventures provide management and operations at more than a dozen U.S. Department of Energy and NASA facilities. Follow us on Twitter @BWXTech and learn more at www.bwxt.com.
Nuclear Fuel Services, Inc. (NFS) in Erwin, Tennessee, is a subsidiary of BWX Technologies, Inc. The facilities manufacture various components for naval nuclear reactors used in submarines and aircraft carriers, as well as components for the commercial nuclear industry.