LEU - Centrus Energy wins first U.S. award to make next-generation nuclear fuel

Centrus Energy ( NYSE: LEU ) +9.2% in Friday's trading after the U.S. Department of Energy announced a $150M cost-share award to the company to help fund a demonstration of high assay low-enriched uranium needed to fuel emerging advanced reactor designs.

The contract will enable production at the company's plant in Ohio of 20 kg of HALEU, enriched up to 19.75% by the end of 2023, with output expected to continue in 2024 at 900 kg/year, depending on congressional appropriations, with additional options to produce more material under the contract in the future, the DoE said.

There is currently no commercial-scale HALEU operation in the U.S., and Russia's invasion of Ukraine and associated pressures on governments and industry to cut ties with Russia has upended the market for many advanced nuclear companies that sought to get their fuel from Russia.

The Biden administration forecasts more than 40 metric tons of HALEU will be needed by 2030, with additional amounts required each year, to deploy reactors to support its goal of reaching 100% clean electricity by 2035.

Seeking Alpha contributor Macrotips Trading said he remains constructive on the "positive margin picture" of Centrus Energy's ( LEU ) fuel operations in a newly published analysis .

For further details see: