Lightbridge Corporation (“Lightbridge”) (Nasdaq: LTBR), an advanced
nuclear fuel technology company, today issued a corporate update in
a letter to shareholders from President and CEO Seth Grae.
To Our Valued Shareholders,
I am pleased to present an overview of
Lightbridge’s progress in 2023, a brief description of a standard
framework for keeping track of progress on nuclear fuel development
efforts that we are adopting going forward, and key upcoming fuel
development milestones that we expect to accomplish over the next
2-3 years. I will also summarize key highlights from COP28, which I
attended.
Key Milestones and Achievements in
2023
Strengthening our Leadership
Team: We welcomed Sherri Goodman and Dr. Scott Holcombe to
our team. Ms. Goodman, a recognized national security expert,
joined Lightbridge as an independent director, bringing invaluable
insights into the intersection of energy and national security. As
our new Vice President of Engineering, Dr. Holcombe brings
extensive expertise in nuclear fuel and materials development and
management of interdisciplinary teams of engineers and subject
matter experts, further bolstering our nuclear fuel technology
leadership.
Agreement with Centrus Energy:
We announced an agreement with Centrus Energy to conduct a
front-end engineering and design (FEED) study for a Lightbridge
Pilot Fuel Fabrication Facility (LPFFF) in Piketon, Ohio. Centrus
hosts the only U.S.-based production facility for high assay low
enriched uranium (HALEU), partnering with the U.S. Department of
Energy (DOE) on the site. The key objective of the FEED study is to
determine the scope of work, cost and schedule estimates, and
identify key risk factors for establishing an LPFFF. The results
from this study will form the basis for a decision on the way
forward for establishing an LPFFF for manufacture of
commercial-size fuel rods for demonstrating and licensing
Lightbridge Fuel in commercial reactors. The LPFFF could
potentially be expanded to a full commercial-scale facility.
Engineering Study for CANDU
Reactors: We announced an agreement with Institutul de
Cercetări Nucleare Pitești, a subsidiary of Regia Autonoma
Tehnologii pentru Energia Nucleara (RATEN ICN), to perform an
engineering study to assess the compatibility and suitability of
Lightbridge Fuel for use in CANDU reactors. Key areas for
assessment include mechanical design, neutronics analysis, and
thermal-hydraulic evaluations. The study will identify any critical
parameters for further evaluation and design. The findings will
guide future economic evaluations and support navigating potential
regulatory-licensing-related issues. Due to the unique design and
operating conditions of CANDU reactors, we believe this type of
reactor may offer an opportunity for faster time to market.
Collaborative Research and Development
Initiatives: We announced a research
study with Texas A&M University, NuScale Power, and Structural
Integrity Associates as part of the DOE Nuclear Energy University
Program (NEUP) R&D Awards. This project focuses on
thermal-hydraulic modeling and testing and aims to increase the
understanding of the overall performance of Lightbridge Fuel under
simulated normal and off-normal conditions in NuScale’s SMR. This
follows a similarly structured NEUP study with the Massachusetts
Institute of Technology announced in 2022 that focuses on
neutronics modeling and safety evaluation of Lightbridge Fuel in a
NuScale SMR.
Enhanced Plutonium Disposition:
We announced that a recently published peer-reviewed technical
paper1 on the disposition of weapons-grade plutonium revealed that,
based on computer simulations, a Lightbridge-designed fuel rod
significantly outperforms traditional mixed-oxide (MOX) fuel in
consuming plutonium, consuming approximately 5.5 times more
plutonium per fuel rod than MOX fuel, making the
Lightbridge-designed rods well-suited for consuming excess
weapons-grade plutonium.
Technology Readiness Level
Framework
Lightbridge is adopting the Technology Readiness
Level (TRL) system to illustrate the progress of its fuel
development efforts. The TRL system, originally developed by NASA2
and widely recognized across various industries, including the OECD
Nuclear Energy Agency, provides a standardized framework for
assessing and communicating the maturity of a particular
technology. This framework encompasses a scale from 1 to 9, with
TRL 1 representing the initial concept or theoretical stage, and
TRL 9 denoting a technology that has been proven in its operational
environment. Utilizing the TRL system allows Lightbridge to map the
development of its nuclear fuel technology against a clear,
standardized metric, enabling stakeholders to gauge progress in a
structured and transparent manner.
Figure 1: Adapted from the OECD-NEA FIDES-II
Strategic Plan 2023, page 73. Illustration of the general
progression of Technical Readiness Level for innovative fuel and
cladding, structural materials, and manufacturing processes,
starting with investigations of fundamental properties and ending
with use of full-scale fuel assemblies and components in NPPs.
Currently, Lightbridge Fuel is positioned at TRL
4-5, indicating a significant phase in our development process. At
this stage, Lightbridge Fuel has moved beyond theoretical research
(TRL 1-3) and entered into the realm of validation in a laboratory
environment (TRL 4) and initiation of validation in representative
operating conditions (TRL 5). This signifies that the core
principles underlying Lightbridge Fuel have been successfully
demonstrated through calculations, in a number of laboratory
experiments, and in test reactor proof-of-concept experiments,
where our efforts are now focused on verifying the technology's
performance under conditions that closely simulate operational
scenarios. This is a pivotal transition from conceptual designs and
laboratory tests to in-reactor testing in representative and actual
conditions the fuel will experience in commercial reactors. This
phase is critical for demonstrating our fuel's design, materials,
performance, and for identifying any potential challenges, allowing
for adjustments and enhancements before advancing to system
prototype demonstration in operational environments (TRL 6-7).
Achieving TRL 4-5 is an important milestone which validates the
Lightbridge Fuel design thus far and sets the stage for subsequent
development steps, moving us closer to commercialization and
widespread adoption of our advanced nuclear fuel (TRL 8-9).
________________________1
https://www.tandfonline.com/doi/full/10.1080/00295450.2022.21458362
https://www.nasa.gov/directorates/somd/space-communications-navigation-program/technology-readiness-levels/
3
https://www.oecd-nea.org/jcms/390976_Media/strategic-plan-final-2023?details=true
Key Upcoming Fuel Development Milestones
Anticipated over the Next 2-3 Years
Applying the TRL framework to the upcoming fuel
development milestones illustrates how each goal aligns with
different TRL levels:
- Expand our fuel
development team to build in-house modeling and simulation
capabilities in neutronics, thermal-hydraulics, fuel performance,
and transient analyses (supports TRL levels 4-9);
- Continue to
execute our ongoing work at Idaho National Laboratory leading to
casting and extrusion of unclad fuel material samples using
enriched uranium and their subsequent insertion for irradiation
testing in the Advanced Test Reactor (supports late stages of TRL
level 4; the experimental data would feed into model development
and validation described above);
- Complete the
Engineering Study for the use of Lightbridge Fuel in CANDU reactors
in collaboration with RATEN ICN (this corresponds to activities
pre-TRL level 4 to confirm feasibility of using Lightbridge Fuel in
another type of reactor, i.e., CANDU pressurized heavy water
reactor);
- Complete the
FEED study for an LPFFF in collaboration with Centrus Energy
(supports TRL levels 5-8); and
- Commence
manufacturing efforts relating to co-extrusion of cladded rodlets
for loop irradiation testing (supports late stages of TRL level 4
and TRL levels 5-7).
COP28 Takeaways and Tripling Nuclear
Capacity by 2050
Significantly, for the first time, at COP28
nuclear energy was recognized alongside other clean energy sectors
in the negotiations' final statement, marking the broader
acceptance of nuclear as a key component of the global
decarbonization strategy. The conference was a confluence of
government officials, industry leaders, and environmental
activists, each bringing their perspectives to the table.
COP28 served as a platform for announcing a
significant commitment by the United States and over 20 other
nations to triple nuclear energy globally by 2050. To meet this
highly ambitious commitment of tripling nuclear power by 2050
assumes maintaining the operation of the current roughly 400 large
nuclear reactors worldwide—93 of which are in the United States.
Additionally, it necessitates the construction of approximately 800
more large reactors, which would signify an unprecedented expansion
in nuclear power infrastructure. If the focus shifts towards small
modular reactors, the numbers required could soar into the
thousands, potentially exceeding 10,000 units, depending on their
capacity.
As the nuclear sector gears up for an
unprecedented expansion, we believe the demand for more efficient,
safer, and economically viable nuclear fuel technology will surge,
positioning Lightbridge Fuel as an important player in this growing
nuclear capacity and its massive addressable market. Lightbridge
Fuel's anticipated benefits, such as enhanced safety, improved
performance, economic benefits due to power uprate and fuel cycle
extension features, and load following opportunities can offer an
attractive fuel technology option to existing and future
water-cooled reactors.
Conclusion
We are focused on further advancing our
technologies, expanding our market presence, and continuing our
collaborations with industry and academic partners. Our ongoing
research and development efforts and strong intellectual property
portfolio position us favorably in an industry set to expand
dramatically throughout the world.
I want to thank our shareholders, employees,
partners, and vendors for your continued support. We will keep you
apprised of our progress and key developments.
Very truly yours,
Seth GraePresident and Chief Executive
OfficerLightbridge Corporation
About Lightbridge
CorporationLightbridge Corporation (NASDAQ: LTBR) is
focused on developing advanced nuclear fuel technology essential
for delivering abundant, zero-emission, clean energy and providing
energy security to the world. The Company is developing Lightbridge
Fuel™, a proprietary next-generation nuclear fuel technology for
existing light water reactors and pressurized heavy water reactors,
significantly enhancing reactor safety, economics, and
proliferation resistance. The Company is also developing
Lightbridge Fuel for new small modular reactors (SMRs) to bring the
same benefits plus load-following with renewables on a zero-carbon
electric grid.
Lightbridge has entered into two long-term
framework agreements with Battelle Energy Alliance, LLC, the United
States Department of Energy’s (DOE) operating contractor for Idaho
National Laboratory (INL), the United States' lead nuclear energy
research and development laboratory. DOE’s Gateway for Accelerated
Innovation in Nuclear (GAIN) program has twice awarded Lightbridge
to support the development of Lightbridge Fuel over the past
several years. Lightbridge is participating in two university-led
studies through the DOE Nuclear Energy University Program at
Massachusetts Institute of Technology and Texas A&M University.
An extensive worldwide patent portfolio backs Lightbridge’s
innovative fuel technology. Lightbridge is included in the Russell
Microcap® Index. For more information, please visit
www.ltbridge.com.
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For an introductory video on Lightbridge, please
visit www.ltbridge.com or click here to watch the
video. Forward Looking StatementsWith
the exception of historical matters, the matters discussed herein
are forward-looking statements. These statements are based on
current expectations on the date of this news release and involve a
number of risks and uncertainties that may cause actual results to
differ significantly from such estimates. The risks include, but
are not limited to: Lightbridge’s ability to commercialize its
nuclear fuel technology; the degree of market adoption of
Lightbridge’s product and service offerings; Lightbridge’s ability
to fund general corporate overhead and outside research and
development costs; market competition; our ability to attract and
retain qualified employees; dependence on strategic partners;
demand for fuel for nuclear reactors; Lightbridge’s ability to
manage its business effectively in a rapidly evolving market; the
availability of nuclear test reactors and the risks associated with
unexpected changes in Lightbridge’s fuel development timeline; the
increased costs associated with metallization of Lightbridge’s
nuclear fuel; public perception of nuclear energy generally;
changes in the political environment; risks associated with war in
Europe; changes in the laws, rules and regulations governing
Lightbridge’s business; development and utilization of, and
challenges to, Lightbridge’s intellectual property; risks
associated with potential shareholder activism; potential and
contingent liabilities; as well as other factors described in
Lightbridge's filings with the Securities and Exchange Commission
(the “SEC”). Lightbridge does not assume any obligation to update
or revise any such forward-looking statements, whether as the
result of new developments or otherwise, except as required by law.
Readers are cautioned not to put undue reliance on forward-looking
statements.
A further description of risks and uncertainties
can be found in Lightbridge’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2022, and in its other filings with
the SEC, including in the sections thereof captioned “Risk Factors”
and “Forward-Looking Statements”, all of which are available at
http://www.sec.gov/ and www.ltbridge.com.
Investor Relations
Contact:Matthew Abenante, IRCDirector of Investor
Relations Tel: +1 (347) 947-2093 ir@ltbridge.com
A figure accompanying this announcement is
available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/f4fd7835-a613-429d-87a1-d1e142eea0e9
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