USEC, UT-Battelle to preserve centrifuge enrichment capabilities on interim basis

USEC and UT-Battelle have signed a $33.7 million, five-month contract to continue operating centrifuges and conducting research and development activities on a uranium enrichment project deemed important for national security and possible commercial use.

The agreement with UT-Battelle, which manages Oak Ridge National Laboratory, was signed May 1. The five-month term ends Sept. 30. The new agreement includes options for two six-month extensions valued at about $41.7 million each. The total price of the contract with the options is roughly $117 million.

USEC, which is now an ORNL subcontractor, previously performed research, development, and demonstration work on the project, the American Centrifuge Project, under an agreement with the U.S. Department of Energy that had been in place since June 12, 2012. That cost-sharing agreement expired April 30. [Read more…]