Lightbridge and AREVA NP Sign Binding Agreement for U.S. Joint Venture for Advanced Nuclear Fuel
September 06 2017 - 7:00AM
Lightbridge Corporation (NASDAQ:LTBR) and AREVA NP in North America
(AREVA Inc.), signed a binding Heads of Terms Agreement for a joint
venture (JV) that summarizes all material terms and conditions to
develop, manufacture and commercialize Lightbridge’s advanced
metallic fuel technology. Lightbridge is a U.S. nuclear fuel
development company and AREVA NP is a leader in servicing and
fueling today’s reactor fleet and advancing the future of nuclear
energy.
Lightbridge’s proprietary technology is designed
to significantly improve economics, efficiency and safety of
existing and new nuclear power plants. The parties agreed that the
cash and non-cash contributions to the JV will be balanced and that
the JV will be owned on a 50-50 basis. The result will be equal
economics for the respective JV owners.
The JV will be the exclusive vehicle through
which Lightbridge and AREVA NP will research, develop, demonstrate,
fabricate, license, market and sell nuclear fuel assemblies that
utilize Lightbridge’s proprietary metallic fuel designs and other
advanced nuclear fuel intellectual property contributed by both
Lightbridge and AREVA NP.
The JV’s activities will encompass the following
types of commercial light water and research reactors:
- Pressurized water reactors (excluding VVER reactor types, a
specific type of pressurized water reactor)
- Boiling water reactors
- Light water-cooled small- and medium-sized reactors
- Research reactors
As a next step, the parties expect to finalize a
definitive JV Operating Agreement based on the Heads of Terms
Agreement in the fourth quarter of 2017 and to launch the JV in the
first quarter of 2018. In parallel, the parties intend to finalize
several additional binding agreements, covering areas such as
intellectual property and research and development. The parties
expect to sign the agreements prior to or simultaneously with the
final JV Operating Agreement.
Seth Grae, president and CEO of Lightbridge,
said: “We are honored to work with the leading nuclear fuel experts
at AREVA NP. Over the last year and a half, our teams in the United
States and around the world worked together and with government
authorities to reach this major milestone, which holds great
promise for the growth of nuclear energy around the world.”
Lionel Gaiffe, senior executive vice president
of the Fuel Business Unit at AREVA NP, said: “At AREVA NP, our
teams maintain an unwavering focus on servicing and fueling today’s
reactor fleet and advancing the future of nuclear energy. Our work
with Lightbridge on this advanced metallic fuel concept will help
nuclear energy facilities in the United States and around the world
operate efficiently and economically, and provide needed low-carbon
electricity.”
Gary Mignogna, president and CEO of AREVA Inc.,
said: “This innovative fuel design offers significant benefit to
the nuclear energy industry and efforts are well underway to bring
it to market. To achieve this goal, AREVA NP and Lightbridge are
engaging our vast worldwide infrastructure, our innovative spirits
and, most importantly, our experience in collaborating directly
with our customers on new technologies.”
In March 2016, AREVA NP and Lightbridge
announced a joint development agreement to develop their
next-generation fuel partnership. The two companies made steady
progress since announcing a term sheet for the JV in October
2016.
Lightbridge is in the process of planning and
conducting preparatory work for fabrication and irradiation testing
of metallic fuel samples, under commercial reactor operating
conditions, at the Halden research reactor in Norway.
Lightbridge is also working closely with four
leading U.S. nuclear utilities to gain valuable feedback on
development of its fuel technology. It signed a letter of intent
with a U.S. utility for a lead test assembly demonstration of
Lightbridge-designed nuclear fuel in a commercial U.S. nuclear
power plant.
About AREVA NP
AREVA NP is a major international player in the
nuclear energy market focused on designing, building, maintaining
and advancing the global nuclear fleet. In North America, AREVA NP
(AREVA Inc.) combines U.S. and Canadian leadership to deliver
innovative solutions and value-added technologies to support the
operation of the commercial nuclear fleet and prepare for the next
generation of nuclear power plants. Leveraging the expertise of its
2,300 North American employees, AREVA NP is helping its customers
improve the safety and performance of their nuclear plants and
achieve their economic and societal goals.
Join the energy conversation with AREVA Inc. on
Twitter: @AREVA_NP_US, Facebook: AREVAinc, and our other social
media channels.
About Lightbridge Corporation
Lightbridge (NASDAQ: LTBR) is a nuclear fuel technology
development company based in Reston, Virginia, USA. The Company
develops proprietary next generation nuclear fuel technologies for
current and future reactors. The technology significantly enhances
the economics and safety of nuclear power, operating about 1000° C
cooler than standard fuel. Lightbridge invented, patented and has
independently validated the technology, including successful
demonstration of the fuel in a research reactor with near-term
plans to demonstrate the fuel under commercial reactor conditions.
The Company has assembled a world class development team including
veterans of leading global fuel manufacturers. Four large electric
utilities that generate about half the nuclear power in the US
already advise Lightbridge on fuel development and deployment. The
Company operates under a licensing and royalty model, independently
validated and based on the increased power generated by
Lightbridge-designed fuel and high ROI for operators of existing
and new reactors. The economic benefits are further enhanced by
anticipated carbon credits available under the Clean Power Plan.
Lightbridge also provides comprehensive advisory services for
established and emerging nuclear programs based on a philosophy of
transparency, non-proliferation, safety and operational excellence.
For more information please visit: www.ltbridge.com.
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at http://ir.ltbridge.com/alerts.cfm .
Lightbridge is on Twitter. Sign up to follow @LightbridgeCorp at
http://twitter.com/lightbridgecorp.
AREVA NP Press Contact:
Karen Heinold
(434) 856-6560
media.relations@areva.com
Lightbridge Contact:
David Waldman/Natalya Rudman
Crescendo Communications, LLC
Tel. +1 855-379-9900
ltbr@crescendo-ir.com
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