Under the JDA, Lightbridge and AREVA NP will work together to assess establishing a joint venture in 2016 to develop, manufacture and commercialize fuel assemblies based on Lightbridge’s next generation metallic nuclear fuel technology. The parties will share the cost of the work scope to be performed under the JDA, with AREVA NP contributing in-kind for its share of the costs.
As part of the definitive joint venture agreements based on successful completion of the scope of work under the JDA, Lightbridge and AREVA NP will agree on: (1) terms and conditions to complete the remaining scope of work to demonstrate and commercialize the fuel assemblies based on Lightbridge’s metallic nuclear fuel, and (2) a technology licensing arrangement and other agreements needed to form and operate the joint venture company. The companies have agreed to work exclusively together in the area covered by the JDA, which will remain in force until the formation of the joint venture or December 31, 2016 at the latest.
Seth Grae, President & Chief Executive Officer of Lightbridge Corporation, commented, "We are enthusiastic to partner with AREVA NP under this agreement that paves the way toward formation of a joint venture focused on developing, licensing, manufacturing and commercializing fuel assemblies based on Lightbridge’s metallic nuclear fuel. As one of the largest nuclear fuel manufacturers, AREVA NP has the resources and expertise to enable global deployment of our metallic fuel in commercial reactors. The Nuclear Utility Fuel Advisory Board (NUFAB), comprising nuclear fuel and regulatory experts from Dominion Resources, Southern Nuclear Operating Company, Duke Energy, and Exelon Generation, have requested that the U.S. Nuclear Regulatory Commission (NRC) prepare to receive initial regulatory licensing documentation in 2017. With today’s agreement with AREVA NP, we are confident that we remain on track to meet that goal."
