Fermi America to develop HALEU enrichment facility in Texas

AMARILLO, Texas - Fermi America announced Friday it has signed a Memorandum of Understanding with ASP Isotopes Inc. (NASDAQ:ASPI) to explore developing a High Assay Low Enriched Uranium (HALEU) enrichment facility in Carson County, Texas. ASP Isotopes, currently valued at approximately $968 million, has shown remarkable momentum with a 133% return year-to-date, according to InvestingPro data.

The planned facility would use laser-based isotope separation technology to produce HALEU, a specialized nuclear fuel needed for next-generation nuclear reactors. The project aims to strengthen domestic supply chains and reduce U.S. reliance on Russian enrichment sources. With a strong liquidity position reflected in its 7.21 current ratio, ASP Isotopes appears well-positioned to undertake this expansion. For deeper insights into ASPI’s financial health and growth potential, InvestingPro offers comprehensive analysis with 15+ additional ProTips.

Fermi America is developing an 11 GW private grid campus in collaboration with the Texas Tech University System. The campus will initially include four AP1000 nuclear units using conventional fuel, with potential to add advanced reactor technologies later.

"Our nation’s ability to lead in advanced nuclear energy is directly tied to our capacity to fuel it here at home," said Toby Neugebauer, Co-Founder and CEO of Fermi America, according to the company’s press release.

The U.S. Department of Energy estimates domestic HALEU demand could exceed 50 metric tons annually by 2035, with similar requirements expected in Europe and Asia.

Rick Perry, Fermi America Co-Founder and former U.S. Energy Secretary, called the project important for American energy security and job creation in Texas.

ASP Isotopes, through its subsidiary Quantum Leap Energy, will provide its Quantum Enrichment technology for the facility. Paul Mann, Chairman and CEO of ASP Isotopes, said the partnership gives the company a platform to play a central role in the emerging Western HALEU market.

Currently, few commercial HALEU suppliers operate in Western countries, making this development potentially significant for advanced nuclear deployment in the United States. Investors should note ASPI’s high beta of 3.39 indicates significant stock volatility, though the company expects substantial growth with analysts forecasting 501% revenue expansion this year, according to InvestingPro data.

In other recent news, ASP Isotopes Inc. has announced several significant developments. The company priced a $60 million offering of common stock, selling 7.5 million shares at $8.00 each to a single institutional investor, with the transaction expected to close soon. Additionally, ASP Isotopes has formed a joint venture with Fermi America to develop advanced nuclear fuel production facilities in Texas, focusing on High Assay Low Enriched Uranium for small modular reactors. In another strategic move, ASP Isotopes partnered with Isotopia Molecular Imaging to enhance the production of Terbium-161, a promising isotope for cancer treatment. This partnership aims to ensure a steady supply of Gadolinium-160, crucial for Terbium-161 production.

Moreover, ASP Isotopes has invested $5 million in seed funding for IsoBio, a company developing antibody-isotope conjugates for cancer therapy. The company also appointed Dr. Ryno Pretorius as the CEO of its subsidiary, Quantum Leap Energy LLC, which focuses on advanced nuclear fuels. These recent activities highlight ASP Isotopes’ ongoing efforts to expand its footprint in nuclear fuel and medical isotope production.

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