GSE Solutions Awarded Contract by Major Utility Company for Nuclear Flow Accelerated Corrosion Update Services

Rhea-AI Summary

GSE Solutions (Nasdaq: GVP) has been awarded contracts worth over $700k by a major east-coast utility for services related to Flow Accelerated Corrosion (FAC) and Erosion programs. The contract spans from Fall 2024 to Spring 2030 and includes FAC Program Reviews, Updates, and System Susceptibility Evaluations at two locations, alongside Erosion Susceptibility Evaluation Updates. GSE has supported this client since 2017, leveraging over 100 years of combined experience in the nuclear industry. The project aims to prepare the utility's aging nuclear fleet for License Renewals, critical for compliance and environmental sustainability.

Positive

• Contracts worth over $700k secured.
• Project duration from Fall 2024 to Spring 2030 ensures long-term engagement and revenue.
• GSE’s continued relationship since 2017 demonstrates client trust and satisfaction.
• Extensive team experience with over 100 years in the nuclear industry.
• Use of industry standards and best practices ensures high-quality service.

Negative

• Dependence on a single client for significant contracts may pose a risk if the relationship sours.
• Potential for project delays or cost overruns could impact profitability.

Insights

Market Research Analyst

GSE Solutions securing a contract worth over $700k with a major utility company is certainly noteworthy. This contract, focusing on Flow-Accelerated Corrosion (FAC) and Erosion program updates, underscores the increasing importance of maintaining aging nuclear plants. As the energy sector shifts towards green energy, ensuring these plants operate efficiently is vital.

This agreement leverages GSE's extensive familiarity with their client's procedures, which can lead to cost efficiencies and improved performance. For investors, this could signal a stable revenue stream over the projected timeline from Fall 2024 to Spring 2030. The long-term nature of this contract suggests sustained business for GSE, potentially smoothing out any earnings volatility.

Moreover, the repeated business from a long-term client highlights customer trust and satisfaction, an intangible yet critical asset that can drive future contracts. This steady, recurring revenue could positively influence GSE's financial stability and investor confidence.

Nuclear Engineering Expert

The contract for updating FAC and Erosion programs is technically significant. Flow-Accelerated Corrosion is a critical issue in nuclear power plants, where high-velocity water can erode piping and components, potentially leading to safety risks. The involvement of GSE, especially under the guidance of Electric Power Research Institute (EPRI) standards, ensures that the highest industry standards will be met.

Given the aging infrastructure of many nuclear plants, this contract likely addresses a important need for modernization to maintain safety and efficiency. For investors, this engagement not only highlights GSE's expertise but also its role in ensuring the long-term viability and regulatory compliance of nuclear facilities. This adds a layer of security to the investment, indicating that GSE remains pivotal in a niche yet essential industry.

COLUMBIA, Md., June 25, 2024 /PRNewswire/ -- GSE Solutions ("GSE Systems, Inc." or "GSE") (Nasdaq: GVP), a leader in advanced engineering solutions that supports the future of clean-energy production and decarbonization initiatives of the power industry, today announced contracts worth more than $700k for the provision of services related to Flow Accelerated Corrosion (FAC) and Erosion programs for a large east-coast utility based in the United States.

Due to the aging nuclear fleets and the growing demand for environmentally friendly energy sources, power plants must regularly carry out License Renewal activities to prepare for Subsequent License Renewals. These activities prompt various modifications within the facilities that have an impact on the programs addressing Flow-Accelerated Corrosion (FAC) and Erosion. Upgrades to the FAC and Erosion programs become necessary to address these issues effectively.

The agreement requires GSE to carry out the specified Scope of Work (SOW) from Fall 2024 to Spring 2030 and will utilize the Electric Power Research Institute (EPRI) guidance documents, industry standards and best practices.

The SOW consists of the following tasks:

• FAC Program Subject Matter Expertise Review Scope
• FAC Program Updates
• FAC System Susceptibility Evaluations at two of the customer locations
• Erosion Susceptibility Evaluation Updates

GSE has been supporting this client since 2017 and is well-acquainted with the client's FAC procedures, protocols, locations, and staff members. The team has extensive expertise in the nuclear industry, with over 100 years of combined experience globally, helping with FAC, Erosion, and License Renewal for this specific project. They also have vast experience using supplemental program software tools that will help provide a faster, more complete "turnkey" solution.

"The previous assistance provided by GSE to this client, along with their familiarity with the programs, reflects positively on the team's expertise in nuclear engineering," stated Damian DeLongchamp, COO of GSE Solutions. "We are grateful for the continued trust our clients place in us, which not only strengthens our relationship but also leads to cost efficiencies due to our in-depth understanding of their operations."

"For more than fifty years, GSE has built a strong reputation in the field of nuclear power plant programs and maximizing value to our customers," stated Ravi Khanna, President and CEO of GSE Solutions. "Our expertise lies in ensuring the optimal operation of nuclear plants while adhering to regulatory requirements and obligations. These are crucial services that our clients are increasingly seeking, particularly as many are in the process of or will soon seek License Renewal support."

ABOUT GSE SOLUTIONS
Proven by more than 50 years of experience in the nuclear power industry, GSE knows what it takes to help customers deliver carbon-free electricity safely and reliably. Today, GSE Solutions leverages top talent, expertise, and technology to help energy facilities achieve next-level power plant performance. GSE's advanced Engineering and Workforce Solutions divisions offer highly specialized training, engineering design, program compliance, simulation, and technical staffing that reduce risk and optimize plant operations. With more than 1,100 installations and hundreds of customers in over 50 countries, GSE delivers operational excellence. www.gses.com

Media Contact
Sunny DeMattio
GSE Solutions
Director of Marketing & Communications
sunny.demattio@gses.com
Direct: +1 410.970.7931

Investor Contact
Adam Lowensteiner
Vice President
Lytham Partners
gvp@lythampartners.com
Direct: +1 646.829.9702

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SOURCE GSE Systems, Inc.

FAQ

What is the value of the contract awarded to GSE Solutions?

The contract awarded to GSE Solutions is valued at over $700k.

What services will GSE Solutions provide under the new contract?

GSE Solutions will provide services related to Flow Accelerated Corrosion (FAC) and Erosion programs, including program reviews, updates, and susceptibility evaluations.

When will GSE Solutions start and complete the contract work for the utility company?

GSE Solutions will start the contract work in Fall 2024 and complete it by Spring 2030.

How long has GSE Solutions been supporting this client?

GSE Solutions has been supporting this client since 2017.

What expertise does GSE Solutions bring to the project?

GSE Solutions brings over 100 years of combined experience in the nuclear industry to the project.