BWXT Awarded $28 Million Contract for Continued Mobile Microreactor Design

Rhea-AI Summary

BWX Technologies, Inc. (NYSE: BWXT) has secured a $28 million contract from the Department of Defense’s Strategic Capabilities Office to develop a transportable microreactor prototype as part of Project Pele. This contract follows a $14 million award for initial design work in 2020. The microreactor aims to provide resilient power for various DoD operations and enhance energy logistics without increasing carbon emissions. BWXT's expertise in innovative designs and proven production techniques positions it strongly in the microreactor market. Work will commence in March 2021 at BWXT’s Virginia facility.

Positive

• Secured a $28 million contract with the DoD for a transportable microreactor prototype.
• Builds on a previous $14 million contract for initial design work, indicating strong ongoing partnership.
• Innovative technology aims to enhance energy resilience for the DoD while reducing carbon emissions.

Negative

• Potential risks include contract modification or termination and technological proving delays.

BWX Technologies, Inc. (NYSE: BWXT) today announced a $28 million, 12-month contract award from the Department of Defense’s (DoD) Strategic Capabilities Office (SCO) for the final design of a transportable microreactor prototype under the second phase of its Project Pele initiative.

SCO is partnering with the U.S. Department of Energy to develop, prototype and demonstrate a mobile microreactor that can be used to provide resilient power needs for the DoD for a variety of operational needs. Consistent with its role as an independent safety and security regulator, the Nuclear Regulatory Commission is providing SCO with additional technical expertise and information on regulatory and licensing processes for advanced reactors to ensure a safe, secure and innovative design. Such reactors provide the opportunity to make the DoD’s domestic infrastructure more resilient to an electric grid attack, while fundamentally simplifying energy logistics and delivery for forward operating bases without increasing carbon emissions.

BWXT announced a $14 million award in March 2020 for initial design under the first phase of this project. Following completion of this second design phase of the project, as well as of the ongoing environmental analysis under the National Environmental Policy Act, SCO could competitively award the manufacturing and deployment of the transportable nuclear reactor prototype in a demonstration phase.

“We believe that our innovative designs, combined with our existential licensed facilities and manufacturing capabilities, set BWXT apart in the microreactor market,” said Ken Camplin, president of BWXT’s Nuclear Services Group. “Our engineering capabilities are ideally suited for projects like this that require pairing first-of-a-kind technological solutions with proven production techniques to develop a fresh option for meeting power generation needs.”

A team led by BWXT’s Advanced Technologies LLC subsidiary will conduct the work primarily at one of its Lynchburg, Virginia locations beginning in March 2021.

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 second phase of the SCO contract, future work with SCO, or the exercise of any contract options. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the contract, funding of current or future work, and delays in and proving the technology. 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 Dec. 31, 2020 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 6,700 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210325005859/en/

FAQ

What is the value of the new contract awarded to BWXT?

The new contract awarded to BWXT is worth $28 million.

When will BWXT begin work on the transportable microreactor prototype?

BWXT will start work on the transportable microreactor prototype in March 2021.

What is the purpose of the transportable microreactor project?

The project aims to provide resilient power for the Department of Defense's various operational needs.

How does the microreactor enhance energy logistics for the DoD?

The microreactor simplifies energy logistics and delivery for forward operating bases.

What was the previous contract value awarded to BWXT for this project?

The previous contract awarded to BWXT for the initial design was $14 million.