Benzinga | Mar 11, 2021 06:45AM EST

BWXT Awarded $35M in Uranium Processing and Research Reactor Fuel Contracts

BWX Technologies, Inc. (NYSE:BWXT) announced today that its BWXT Nuclear Operations Group, Inc. (BWXT NOG) subsidiary has been awarded a total of $35 million in contracts under two separate programs -- uranium recovery and conversion as well as construction of a new research reactor fuel line.

"These awards showcase BWXT's unique capabilities in processing and manufacturing nuclear fuels, our long history fueling research reactors and our dedication to enhancing global security," said BWXT NOG President Joel W. Duling.

Uranium recovery and conversion

The U.S. Naval Nuclear Propulsion Program has awarded BWXT NOG a $17.4 million contract for uranium recovery and conversion. An additional option is expected to be awarded later this year.

This contract funds the recovery of valuable uranium from scrap, waste and unused product to be converted into fuel to feed future Naval Nuclear Propulsion Program products. BWXT owns the only two Category 1 nuclear facilities licensed by the Nuclear Regulatory Commission to store and process highly enriched uranium.

This work began at the BWXT NOG facility in Lynchburg, Virginia in January 2021 and is expected to be completed by June 2022.

HALEU research reactor fuel project

The U.S. Department of Energy's National Nuclear Security Administration (NNSA) awarded a $17.9 million contract to BWXT NOG to complete the second phase of the construction of a new research reactor fuel line BWXT previously announced.

The contract funds the repurposing of a portion of the Lynchburg uranium processing facility to be used to manufacture uranium-molybdenum alloy High Assay Low Enriched Uranium (U-Mo HALEU) fuel. This fuel will facilitate conversion of high-performance U.S. research reactors that currently use high enriched uranium. The NNSA has encouraged the conversion of research reactors and medical isotope production facilities from the use of high enriched uranium to reduce the risk of the fuel being diverted for nefarious purposes.

BWXT has been supplying fuel elements and assemblies manufactured in Lynchburg 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.