Yesterday, Chicago Bridge & Iron (CBI - Analyst Report) announced that it has received a contract valued at $35 million from the U.S. Army Corps of Engineers, Baltimore District. The scope of the contract requires CBI to decommission, dismantle and dispose of the MH-1A nuclear reactor, installed on the STURGIS barge.
The reactor, which was last operated in Jul 1976, has already been de-fueled, decontaminated and sealed and is currently anchored at the James River Reserve Fleet. Prior to it being shut down, the nuclear reactor was primarily used for electricity generation.
CBI has a proven track record of successfully managing wastes of all types, including radioactive, mixed, hazardous and sanitary. The company’s primary clients in this segment are federal, state and local regulators who ensure safety and compliance in the handling, processing, treating, transporting and disposal of these wastes. Prior to this, CBI has disposed millions of tons of radioactive wastes from several U.S. Department of Energy nuclear weapons sites.
The nuclear plant vessel MH-1A – STURGIS will be relocated to Galveston, TX, by Sep 2014, for decommissioning, per the plan. After the radioactive waste materials are disposed, the vessel will be transported to Brownsville, TX, for disposal or recycling as scrap using standard ship breaking methods.
The Nuclear Regulatory Commission has strict rules governing nuclear power plant decommissioning, involving cleanup of radioactively contaminated plant systems and structures, and removal of the radioactive fuel. All companies looking to dispose their radioactive wastes have to strictly adhere to the rules.
According to World Nuclear Association, to date, about 100 mines, more than 100 commercial power reactors, 46 experimental or prototype reactors, over 250 research reactors and a number of fuel cycle facilities have been retired from operation. Some of these have been fully dismantled.
CBI is a comprehensive energy infrastructure company and a major provider of government services. CBI provides a wide range of services including design, engineering, construction, fabrication, maintenance and environmental services.
CBI currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include MasTech Inc. (MTZ - Analyst Report) having a Zacks Rank #1 (Strong Buy), India Globalization Capital, Inc . and Quanta Services Inc. (PWR - Analyst Report), both having a Zacks Rank #2 (Buy).
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