Centrus Energy Corp. (LEU)

Company website 2020 Financial Report Stock Analysis

323115

Million Dollar-Contract

to build the only US uranium enrichment plant licensed to produce High-Assay, Low-Enriched Uranium

Nuclear Operators

Centrus supplies separative work units to more than 35 nuclear operators globally

Tablespoons

of High-Assay, Low Enriched Uranium is enough to meet your electricity needs for life

View Our Analysis

The Path to Drawdown: Nuclear Power

Addressing climate change and remaining below 1.5ºC of global warming compared to pre-industrial levels means that the world’s electricity source needs to switch from fossil fuels to 100% emissions-free sources by 2050. Nuclear power needs to be a significant component in the energy mix of that decarbonized future.

Extremely powerful and efficient in generating electricity, nuclear power has reduced CO2 emissions by over 60 gigatonnes over the last five decades -- equivalent to nearly 2 years’ worth of global energy-related emissions. Unlike solar and wind, electric generation from nuclear power is stable. The cost of building new plants is still very high, but once built, the energy is relatively inexpensive. With Generation III reactors on the horizon, nuclear power is becoming safer, cheaper, and more efficient.

Nuclear power accounts for 10.5% of global electricity generation today. To be on a path to remain under 1.5C° of warming, nuclear power needs to grow mildly in the next three decades:

<::marker> 6,093 TWh of nuclear electricity generated in 2018
<::marker> 6,245.3 TWh needed by 2050
<::marker> CAGR of 0.08% from 2018-2050

About

Centrus Energy Corp. (stock ticker: LEU) supplies nuclear fuel and services for the nuclear power industry in the United States, Japan, Belgium, and internationally. They were founded in 1998 and is headquartered in Bethesda, Maryland.

LEU's Role in Drawdown

Centrus sells various components of nuclear fuel, like parts of low-enriched uranium, and the provision of technical solutions to deploy advanced nuclear fuel production capabilities.

The company operates in two segments: Low-Enriched Uranium (LEU) and Technical Solutions. The LEU segment sells separative work units (SWU) component of LEU, SWU and uranium components of LEU, and natural uranium for utilities that operate nuclear power plants. Its LEU is a component that is used in the production of nuclear fuel for reactors to produce electricity.

The Technical Solutions segment offers technical, manufacturing, engineering, procurement, construction, and operations services to public and private sector customers, including the American Centrifuge engineering and testing activities.

LEU: What We Like

We'll update this section once Centrus makes sustainability information available.

What We Want to See Improve

Disclose Sustainability Metrics

Centrus doesn't make any sustainability information available on their website or reports. We'd like to see them publish an annual ESG report that includes their absolute greenhouse gas emissions from their property, plants, equipment, as well as from their supply chain.

Set Clear Emissions Reduction Goals

As more and more companies set commitments to cut emissions to move to clean sources of energy, we're eager to see Centrus do the same. They should propose targets for reducing their carbon emissions toward zero by 2030.

Related Nuclear Energy Stocks in the Climate Index

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Allocated	Company	Description
0.61%	Cameco Corp. (CCJ)	Cameco is one of the largest uranium producers in the world. Uranium is the metal used in generating nuclear power, an important clean energy source
0.05%	Centrus Energy Corp. (LEU)	Centrus sells low-enriched uranium and technical solutions to the nuclear power industry in the US. Nuclear power is a key part of the future energy mix
0.05%	Uranium Energy Corp. (UEC)	UEC explores, mines and processes uranium through in-situ recovery mining. Uranium is needed for nuclear energy, a key part of a zero-emission energy mix
0.03%	Ur-Energy Inc. (URG)	Ur-Energy identifies, acquires, explores, and processes uranium in the US. Nuclear power is a key element in the decarbonized energy mix
0.02%	Lightbridge Corp. (LTBR)	Lightbridge Corporation makes an all-metal fuel for nuclear reactors. Nuclear power is a key part of a zero-emissions energy mix