-Both the Memorandum of Understanding (MOU) and the other additional customer discussions are focused on formalizing collaboration to develop a HALEU production facility. These discussions include providing financial support for the development of a production facility and the future supply of metric tons of HALEU.
-ASPI has created a new subsidiary, Quantum Leap Energy LLC (QLE), to focus on the development of Quantum Enrichment Process technology, with a goal to supply commercial quantities of HALEU for Small Modular Reactors by 2027 and Lithium-6 for Nuclear Fusion.
-Based on these discussions with potential customers, ~$30 billion of HALEU demand is already anticipated.
-Quantum Leap Energy LLC operations are expected to be primarily funded by customers through investments and prepayments—ASPI is to consider plans for a future spin-off of the Quantum Leap Energy business to ASPI shareholders.
WASHINGTON, Sept. 28, 2023 (GLOBE NEWSWIRE) — ASP Isotopes Inc. NASDAQ: ASPI (“ASPI,” or the “Company”), an advanced materials company dedicated to the development of technology and processes designed to produce isotopes used in multiple industries, today announced that it has entered into a memorandum of understanding (MOU) with a major SMR (small modular reactor) company and is also engaged in discussions with at least four other potential customers regarding the development of a High Assay Low Enriched Uranium (HALEU) production facility with financial support from these future potential customers.
The Company is in discussions with potential customers who anticipate requiring over $30 billion(1) of HALEU at recent market prices.
HALEU will be required to enable many nuclear reactors, such as SMRs (small modular reactors), to operate in the future. Currently, there are no Western producers of HALEU in commercial quantities, and many SMR companies worldwide face substantial delays until this fuel supply issue is resolved. The Nuclear Energy Institute estimates that there may be a HALEU supply demand of approximately 3,000 metric tons by 2035(2). However, based on discussions with and the interest received from potential customers, the Company believes this figure may be significantly larger.
The advanced nuclear fuels required during the next fifty years are expected to differ significantly from those used in the last fifty years. Without these advanced nuclear fuels, the world stands little chance of meeting 2050 climate goals, which could have devastating consequences for the world. Historically, low-carbon-emitting, environmentally friendly fuels for electricity production were available only at a substantial “green premium” vs. carbon-based fuels used for electricity generation.
ASPI believes their Quantum Enrichment process will be able to produce HALEU at an attractive price, allowing new nuclear energy to become available at a “green discount” to carbon-intensive electricity production processes. This “green energy cost advantage” is expected to help accelerate the global adoption of new nuclear energy, with a corresponding benefit to climate goals.
The Company has incorporated a new subsidiary, Quantum Leap Energy LLC (QLE), in the United States and an operating subsidiary in the United Kingdom (Quantum Leap Energy Ltd), which will focus on producing advanced nuclear fuels.
Specifically, QLE will concentrate on producing HALEU for use in Small Modular Reactors by 2027 and Lithium-6, which will be necessary for Nuclear Fusion. This production will come from the development of the Quantum Enrichment Process. Quantum Enrichment Process, an isotope enrichment method under development by our scientists, is a laser-based enrichment method, which we believe will have both the lowest levelized cost of HALEU production, the lowest cash operating cost of HALEU production, low capital expenditure, and efficient construction cycles. This will make the Quantum Enrichment Process ideal for enriching smaller-to-mid size quantities or flexible and growing amounts of specialized materials (HALEU and Lithium-6), as opposed to existing isotope enrichers who rely on a more extensive and slower process to produce commodity products.
In addition, based on initial experimental data, we believe that the Quantum Enrichment Process can enrich previously depleted uranium tails, which is essentially waste from other enrichers. Globally, over 1.7 million metric tons of depleted uranium tails are becoming an environmental hazard.
During the next 30 years, global energy consumption will likely double(3). To meet 2050 climate goals, this must occur with a zero increase in carbon emissions. “Over the last several decades, the scientists at ASPI have developed some of the world’s most advanced isotope enrichment technologies. We have already had success with the enrichment of Carbon, Oxygen, and Silicon which will come into production in 2024 and we look forward to further using these technologies to solve some of our planet’s greatest challenges,” said Paul Mann, Chairman and CEO of ASPI, and Chairman and CEO of QLE. “Nuclear fuel has one of the most severely compromised supply chains of any material in the World(4). The World is in urgent need of an alternative supplier.”
Quantum Leap Energy LLC is expected to be financed primarily independently of ASPI. It is expected that most of QLE’s financial needs will be supplied by its future customers and other commercial partners. It is currently anticipated that the Company will consider plans for a future spin-off of the QLE business to ASPI shareholders.
