Department of Energy Selects BWXT to Support Nonproliferation Fuel Program

LYNCHBURG, Va.--()--BWX Technologies, Inc. (NYSE: BWXT) announced today that the U.S. Department of Energy’s National Nuclear Security Administration (NNSA) has awarded an initial $3.6 million contract to the BWXT Nuclear Operations Group, Inc. subsidiary as the manufacturer of a uranium-molybdenum alloy High Assay Low Enriched Uranium (U-Mo HALEU) fuel that will facilitate the conversion of high-performance U.S. research reactors from the current use of high-enriched uranium.

The contract funds engineering work for the decommissioning and refurbishment of portions of the Lynchburg, Virginia, facility for future production of U-Mo HALEU.

Research reactors are used to perform critical science experiments for the advancement of nuclear physics, engineering, nuclear chemistry, materials science, biology and medicine. Although these high-performance research reactors currently rely on high-enriched uranium as fuel, BWXT has been working independently and in concert with NNSA since 2006 to develop U-Mo HALEU fuel that is designed to retain the reactors’ performance while lowering the proliferation risk. This project was undertaken in support of NNSA’s Office of Defense Nuclear Nonproliferation and its research reactor conversion program, which encourages the conversion of domestic and international civilian research reactors and medical isotope production facilities to the use of non-weapons grade materials.

“We are excited to be selected by NNSA to continue our long and successful history of fueling research reactors,” said BWXT Nuclear Operations Group, Inc. President Joel W. Duling. “This development represents the intersection of our missions to enhance global security and lead nuclear innovation.”

BWXT has been supplying fuel elements and assemblies for research and test reactors for decades and is the only North American supplier of fuel-bearing components for reactors at national laboratories, colleges and universities. The integration of U-Mo HALEU fuel alloy processing at the same BWXT facility used to produce research reactors’ fuel-bearing components will have significant benefits for quality, cost and logistics.

This award will allow BWXT to begin preparation activities for fabricating U-Mo HALEU at the uranium processing facility in Lynchburg, Virginia. Assuming additional future awards, BWXT anticipates that fuel production could begin by 2024.

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 contract for engineering to decommission and refurbish parts of our factory for future fuel production; expected U-Mo HALEU production and demand; and the timing, benefits and impact of the foregoing. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract and delays in production of U-Mo HALEU. 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 BWXT’s annual report on Form 10-K for the year ended December 31, 2018 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.

About BWXT

At BWX Technologies, Inc. (NYSE: BWXT), we are People Strong, Innovation Driven. Headquartered in Lynchburg, Va., BWXT provides safe and effective nuclear solutions for national security, clean energy, environmental remediation, nuclear medicine and space exploration. With approximately 6,600 employees, BWXT has 12 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 at @BWXTech and learn more at www.bwxt.com.

Contacts

Media Contact
Chris Dumond
Communications Manager
434.522.5015
cmdumond@bwxt.com

Investor Contact
Mark Kratz
Director, Investor Relations
980.365.4300
investors@bwxt.com

Release Summary

Department of Energy Selects BWXT to Support Nonproliferation Fuel Program

Contacts

Media Contact
Chris Dumond
Communications Manager
434.522.5015
cmdumond@bwxt.com

Investor Contact
Mark Kratz
Director, Investor Relations
980.365.4300
investors@bwxt.com