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BWXT Awarded Phase Two of Microreactor Evaluation Contract for State of Wyoming

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BWX Technologies (NYSE: BWXT) announced it has secured the second phase of a contract from the Wyoming Energy Authority. This contract aims to assess the deployment of small-scale nuclear reactors in Wyoming as part of a resilient energy strategy. Phase one focused on defining nuclear application requirements and identifying Wyoming's supply chain capabilities. The $20 million cost-share program's phase two will involve conceptual design, regulatory planning, and demonstrating manufacturing capabilities. Completion is expected by Q3 2025. The initiative leverages the U.S. Department of Energy's Advanced Reactor Demonstration Program achievements and involves collaboration with Idaho National Laboratory.

Positive
  • BWXT secures phase two of a $20 million contract, strengthening its position in nuclear energy.
  • Initiative reinforces Wyoming's energy portfolio, potentially boosting local economic opportunities.
  • Collaboration with Idaho National Laboratory leverages advanced research and development investments.
  • Strong stakeholder support and well-attended vendor workshops indicate robust project backing.
  • Conceptual design and regulatory planning set to enhance BWXT’s nuclear reactor deployment capabilities.
Negative
  • Completion of phase two is not expected until Q3 2025, indicating a long timeline.
  • High project costs and the need for substantial investment may pose financial risks.
  • Regulatory hurdles could delay the project further, impacting timelines and costs.
  • Dependent on the successful demonstration of Wyoming’s supply chain capabilities, which adds uncertainty.

Insights

The award of phase two of BWXT's contract with the Wyoming Energy Authority demonstrates significant progress in the deployment of microreactors. This project aims to enhance Wyoming’s power generation resources by integrating small-scale nuclear reactors. From an energy market perspective, this initiative could diversify Wyoming's energy portfolio and promote energy resilience, reducing dependence on traditional fossil fuels.

Microreactors have the potential to provide reliable, continuous power with minimal environmental impact. This could position Wyoming as a leader in clean energy innovation, appealing to environmentally-conscious investors. Additionally, the development of a local supply chain for nuclear components may stimulate regional economic growth and job creation, benefiting local businesses and the state’s economy.

However, investors should be aware of the regulatory and technical challenges inherent in nuclear energy projects. Successful completion of phase two would require navigating complex regulatory environments and ensuring safety standards are met. Any delays or issues in these areas could impact the project's timeline and costs.

BWXT’s advancement into phase two of the microreactor project represents a significant step in nuclear technology and its applications. Microreactors are compact, scalable nuclear reactors designed to provide power to remote or off-grid locations. They offer several advantages over traditional reactors, including faster deployment, lower initial capital costs and scalability. These features make microreactors particularly suited for Wyoming's diverse energy needs.

The involvement of the Idaho National Laboratory (INL) and the U.S. Department of Energy’s Advanced Reactor Demonstration Program underscores the technical rigor and strategic importance of this project. INL's expertise can help address technical challenges and accelerate the development of safe, reliable microreactor systems. For investors, successful implementation could signal a breakthrough in commercial nuclear technology, creating new opportunities in the energy sector.

However, while the potential benefits are significant, investors should consider the technical risks and the long development timelines typically associated with nuclear projects. Continuous collaboration with regulatory bodies and adherence to safety protocols are critical to the success of this endeavor.

From a financial standpoint, BWXT's involvement in the Wyoming microreactor project through the second phase of the cost-share program marks a notable development. The project's total value of approximately $20 million reflects a substantial investment in innovative energy solutions. BWXT's collaboration with the Wyoming Energy Authority and leveraging existing DOE investments can potentially lead to cost efficiencies and technological advancements.

This contract could also improve BWXT's financial health by diversifying its revenue streams and solidifying its position in the nuclear energy market. Furthermore, successful execution of phase two could attract additional investments and partnerships, enhancing the company’s market valuation and investor confidence.

Nonetheless, investors should remain cautious about the inherent risks associated with large-scale projects, including potential cost overruns and regulatory hurdles. Monitoring the project's progress and financial implications will be important in making informed investment decisions.

Support Strong Among Wyoming Stakeholders and Potential Vendors During Phase One of Cost-Share Program

LYNCHBURG, Va.--(BUSINESS WIRE)-- BWX Technologies, Inc. (NYSE: BWXT) today announced the award of the second phase of a contract with the Wyoming Energy Authority to assess the viability of deploying small-scale nuclear reactors in the state as a source of resilient and reliable energy to augment existing power generation resources.

Under phase one of the program, BWXT Advanced Technologies LLC (BWXT) worked with the Wyoming Energy Authority to define the requirements for nuclear applications of base heat and power needs for remote, off-grid applications within the state. BWXT also performed microreactor system engineering work that could support Wyoming’s future power needs and identified areas where Wyoming’s existing supply chain could demonstrate capabilities for reactor component manufacturing and support reactor deployment.

Phase two of the contract includes completing conceptual design of a lead microreactor unit, developing a regulatory engagement plan and microreactor fleet model, and demonstrating the Wyoming supply chain’s ability to manufacture nuclear components.

“BWXT has seen extraordinary support for the opportunities for microreactor deployment in Wyoming,” said Joe Miller, BWXT Advanced Technologies LLC president. “Our meetings with numerous stakeholders have been very productive, and our workshops in Gillette, Cheyenne and Casper with potential local vendors have been well-attended. We look forward to taking this next step forward with the Wyoming Energy Authority and very much appreciate the vision of a clean, reliable and practical energy future demonstrated by both Governor Mark Gordon and the Authority’s Executive Director Rob Creager.”

In support of this program, BWXT is leveraging existing U.S. Department of Energy Advanced Reactor Demonstration Program (ARDP) achievements through the company’s collaboration with Idaho National Laboratory (INL) and other internal BWXT research and development investments. Through the ARDP, BWXT and DOE have been developing the BANR microreactor since 2021, and this effort in Wyoming represents an acceleration of BWXT’s commercial nuclear development efforts. INL has been providing strategic and technical support to the State of Wyoming under a memorandum of understanding signed in 2022.

“We are eager to move forward with phase two of our contract with BWXT. The completion of phase one confirms our vision of why nuclear has so much potential in Wyoming – from uranium production to manufacturing to industrial applications,” said Rob Creager, executive director of the Wyoming Energy Authority. “As the world’s demand for reliable, affordable baseload power only increases over the next fifty years, we see nuclear as a valuable investment to Wyoming’s already robust energy portfolio.”

“The landscape of economic opportunity related to non-traditional application of nuclear energy is evolving quickly, with significant opportunities firming in regional, national and global markets,” said Dr. Steven Aumeier, senior advisor for strategic programs at INL. “This acceleration of Wyoming’s leadership in the future of nuclear energy is very timely to meet this new frontier of global opportunity.”

The total value of the cost-share program is approximately $20 million, and phase two of the program is expected to be complete by the third quarter of 2025.

Forward Looking Statements

BWXT cautions that this release contains forward-looking statements, including statements relating to the performance, design, suitability and impact of the microreactor design and engineering work to be undertaken by BWXT under the contract with the Wyoming Energy Authority. These forward-looking statements involve a number of risks and uncertainties, including, among other things, modification or termination of the project, execution of future contracts 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 and subsequent quarterly reports on Form 10-Q 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 Fortune 1000 and 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.

Media Contact

Jud Simmons

Senior Director, Media & Public Relations

434.522.6462 hjsimmons@bwxt.com

BWXT Investor Contact

Chase Jacobson

Vice President, Investor Relations

980.365.4300 investors@bwxt.com

Source: BWX Technologies, Inc.

FAQ

What is the significance of BWXT's phase two contract in Wyoming?

It aims to assess the deployment of small-scale nuclear reactors to enhance Wyoming's energy resiliency.

What is the total value of BWXT's cost-share program with Wyoming?

The total value of the program is approximately $20 million.

When is the completion of BWXT's phase two contract expected?

Phase two is expected to be complete by the third quarter of 2025.

How does BWXT's phase two contract benefit Wyoming?

It supports energy diversification, potential economic growth, and local manufacturing capabilities.

What research collaborations are involved in BWXT's phase two contract?

The project involves collaboration with Idaho National Laboratory and leverages the U.S. Department of Energy's Advanced Reactor Demonstration Program.

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