Russian warheads fuel $200 million contract

USEC has signed a $200 million contract to supply fuel from recycled Russian warhead uranium to Constellation Generation Group’s five nuclear power reactors.


USEC has signed a $200 million contract with Constellation Generation Group to supply separative work units (SWU) to fuel the utility’s five nuclear power reactors. SWU is the standard unit of measurement for uranium enrichment.



Under the contract, USEC will continue to supply the Baltimore-based utility with fuel from recycled Russian warhead uranium through the US-Russian Megatons to Megawatts program.



Recycling of the warhead material takes place in Russia before shipment to the United States. As the US government’s executive agent, USEC purchases the warhead-derived fuel from Russia for use by utility customers.



Robert Van Namen, USEC senior vice president, said, “This new contract extends USEC’s strong partnership with Constellation and underscores our commitments to nuclear power and global security.



“It also supports USEC’s program to demonstrate and deploy its next-generation American Centrifuge uranium enrichment technology and provide a reliable and competitive fuel source for many years to come.”



USEC has been a fuel supplier to Constellation for more than a decade. The new contract will cover deliveries from 2007 to 2012.