GE Signs Agreement With Silex Systems Of Australia To Develop Uranium Enrichment Technology
Move Would Expand GE's Presence Within Global Nuclear Sector
WILMINGTON, N.C. - May 22, 2006 - GE Energy's nuclear business has signed an exclusive agreement with Silex Systems Limited, an Australia-based technology innovator, to license the technology and develop the company's next generation low enriched uranium manufacturing process in the United States.
The transaction is subject to, among other things, governmental approvals and regulatory controls on the design, construction and operation of the process.
The agreement provides for a phased approach to the development of the Silex technology and the potential construction of a test loop, pilot plant, and a full-scale, commercial enrichment facility. These operations would be built at GE's existing nuclear energy headquarters in Wilmington, N.C. or another suitable location in the United States.
Sydney-based Silex's technology represents a new third-generation, laser-based "isotope separation" process for enriching uranium solely for the use in civilian nuclear power plants which has efficiency advantages over existing civilian fuel enrichment processes like gas diffusion or gas centrifuge plants. The low-grade enriched uranium will be used for industrial purposes.
"By acquiring the exclusive rights to complete the process development and commercial deployment of Silex's enrichment technology, GE will be in a strong position to support anticipated demands for enriched uranium," said Andy White, president and CEO of GE's nuclear business.
"GE is very excited about the transaction and the potential of this innovative technology. We are looking forward to the completion of its development and bringing this product to the global marketplace," White added.
"Despite their size differences, GE and Silex share a crucial corporate trait: a dedication to technological innovation," said Dr. Michael Goldsworthy," CEO and founder of Silex. "While Silex developed the technology concept, GE has the required technological and commercial capabilities to take it to the next level."
"Completing the development and commercial deployment of this third generation enrichment process will require a significant amount of technological, financial and infrastructure support, which only a company like GE can provide," Goldsworthy said.
In addition to helping Silex complete the process development and commercial deployment of the technology, the agreement represents an expansion by GE into the global uranium enrichment sector, which is valued at approximately $U.S. 5 billion annually.
"By adding the next generation of enrichment technology to its nuclear portfolio, GE has the potential to offer the most efficient enrichment technology available to a range of existing commercial customers and businesses," White said.
"This transaction demonstrates GE's commitment to the nuclear industry, and enables us to expand our current capabilities into adjacent and complementary technologies," he added.
GE Energy's nuclear business develops advanced light water reactors and provides a wide array of technology-based products and services to help owners of both boiling and pressurized water reactors safely operate their facilities with greater efficiency and output.
About GE Energy
GE Energy (www.ge.com/energy) is one of the world's leading suppliers of power generation and energy delivery technologies, with 2005 revenue of $16.5 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.
Numerous GE Energy products are certified under ecomagination, GE's corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges.
For more information, contact:
Dennis Murphy
GE Energy
+1 678 844 6948
dennis.murphy@ps.ge.com
Ken Darling or Tom Murnane
Masto Public Relations
+ 1 518 786 6488
kenneth.darling@ps.ge.com
tom.murnane@mastopr.com
