BWXT-led Team Awarded $45 Billion Environmental Management Contract for DOE’s Hanford Site

Rhea-AI Summary

BWXT Technologies, Inc. secures a $45 billion contract from the U.S. Department of Energy for environmental management operations at the Hanford Site in Washington. The 10-year contract involves the Hanford Integrated Tank Disposition Contract awarded to Hanford Tank Waste Operations & Closure, LLC, a joint venture led by BWXT. This significant award showcases BWXT's technical capabilities in environmental restoration sites and commitment to supporting DOE's environmental stewardship and national security efforts.

Positive

• BWXT secures a $45 billion contract with the DOE for environmental management operations at the Hanford Site.
• The 10-year contract highlights BWXT's technical capabilities in high-consequence environmental restoration sites.
• The contract underscores BWXT's commitment to supporting DOE's environmental stewardship and national security efforts.

Negative

• None.

Insights

Environmental Management Expert

The contract awarded to BWX Technologies, Inc. by the U.S. Department of Energy for operations at the Hanford Site represents a substantial commitment to environmental remediation and reflects the growing importance of environmental management within the energy sector. The Hanford Site, with its history of plutonium production, presents unique challenges in terms of radioactive waste cleanup. The estimated value of up to $45 billion over a decade underscores the scale and complexity of the work required.

From an environmental management perspective, the integration of operations, waste treatment and project management within the scope of the ITDC is significant. It indicates a holistic approach to environmental restoration, which is essential for minimizing long-term risks and ensuring the safety of the workforce and public. The emphasis on environment, safety, health and quality within the contract’s core functions aligns with industry best practices for such high-stakes projects.

Market Research Analyst

The financial implications of a contract of this magnitude are considerable for BWX Technologies and its partners. A contract valued at up to $45 billion provides a stable, long-term revenue stream, which is likely to be viewed favorably by investors and could potentially influence BWXT's stock market performance positively. The partnership with subsidiaries of Amentum and Fluor also indicates a strong collaboration between major industry players, which may enhance the joint venture's capability to manage the complexities of the Hanford Site project.

Furthermore, the award of such a contract by the DOE may signal potential opportunities for other companies in the environmental management sector. As the government continues to prioritize the cleanup of legacy sites, the market for environmental restoration services could see significant growth, potentially benefiting companies with the requisite technical expertise and operational capacity.

Energy Sector Analyst

The Hanford Integrated Tank Disposition Contract (ITDC) represents a strategic pivot for the U.S. Department of Energy and BWX Technologies, emphasizing the shift towards addressing legacy environmental liabilities. The contract's focus on the Waste Treatment and Immobilization Plant is particularly noteworthy, as it addresses the long-standing issue of radioactive waste treatment. The ability to safely immobilize and dispose of tank waste is critical for mitigating environmental risks associated with former plutonium production activities.

Given the DOE's role in national security and cleanup work, this contract also has broader implications for the energy sector's alignment with federal environmental and security objectives. The successful execution of the ITDC could serve as a benchmark for future environmental management projects and establish BWXT and its partners as leading contributors to the sector's efforts in environmental stewardship and sustainable operations.

LYNCHBURG, Va.--(BUSINESS WIRE)-- BWX Technologies, Inc. (NYSE: BWXT) today announced a contract with an estimated value of up to $45 billion over a 10-year ordering period from the U.S. Department of Energy (DOE) for environmental management operations at the Hanford Site in Washington.

The DOE announced that the Hanford Integrated Tank Disposition Contract (ITDC) was awarded to Hanford Tank Waste Operations & Closure, LLC (H2C), which is a joint venture led by a BWXT subsidiary and includes subsidiaries of Amentum and Fluor.

“This is an important award for BWXT and represents a significant objective as we continue to leverage our technical capabilities on high-consequence environmental restoration sites,” said Rex Geveden, BWXT’s president and chief executive officer. “We are dedicated to supporting the U.S. Department of Energy’s environmental stewardship at this site, as well as national security and cleanup work for DOE sites across the nation.”

“Our team is both honored and appreciative that DOE has selected us to take on the largest and most complex radioactive waste cleanup project in the United States,” said Heatherly Dukes, president of BWXT’s Technical Services Group. “We are committed to working with our DOE Environmental Management customer, regulatory authorities and the Tri-Cities community in safely reducing the environmental liabilities at the site in an efficient and effective manner that is protective of the workforce, the public and the environment.”

The scope of the ITDC includes operation of Hanford tank farm facilities, eventual operation of the Waste Treatment and Immobilization Plant, and responsibility for other core functions such as project management, security and emergency services, business performance, and environment, safety, health and quality.

The DOE is engaged in one of the great public works projects of this century at the Hanford Site near Richland, Washington. Responsible for the federal government’s cleanup of the legacy of more than 40 years of producing plutonium through the 1980s, DOE is transforming the site back into an operations mode to treat tank waste from the production era. More information is available from the DOE’s Office of Environmental Management.

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 ITDC, future work at the Hanford site, and the award or exercise of any contract options or orders. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the ITDC and delays. 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, 2023 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, Virginia, BWXT is a Defense News Top 100 manufacturing and engineering innovator that provides safe and effective nuclear solutions for global security, clean energy, environmental restoration, nuclear medicine and space exploration. With approximately 7,800 employees, BWXT has 14 major operating sites in the U.S., Canada and the U.K. In addition, BWXT joint ventures provide management and operations at a dozen U.S. Department of Energy and NASA facilities. For more information, visit www.bwxt.com. Follow us on LinkedIn, X, Facebook and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240304288457/en/

Media Contact

Jud Simmons

Senior Director, Media & Public Relations

434.522.6462 hjsimmons@bwxt.com

Investor Contact

Chase Jacobson

Vice President, Investor Relations

980.365.4300 investors@bwxt.com

Source: BWX Technologies, Inc.

FAQ

What is the value of the contract BWXT secured from the U.S. Department of Energy?

BWXT secured a contract with an estimated value of up to $45 billion over a 10-year ordering period.

Who was the Hanford Integrated Tank Disposition Contract awarded to?

The contract was awarded to Hanford Tank Waste Operations & Closure, LLC (H2C), a joint venture led by a BWXT subsidiary.

What are some core functions included in the scope of the ITDC?

The scope of the ITDC includes operation of Hanford tank farm facilities, eventual operation of the Waste Treatment and Immobilization Plant, project management, security and emergency services, business performance, and environment, safety, health, and quality.

What is the significance of the contract for BWXT?

The contract showcases BWXT's technical capabilities in high-consequence environmental restoration sites and its commitment to supporting DOE's environmental stewardship and national security efforts.

Who is the president and CEO of BWXT Technologies, Inc.?

Rex Geveden is the president and chief executive officer of BWXT Technologies, Inc.