Babcock & Wilcox's (B&W) subsidiary Nuclear Fuel Services (NFS) has secured contract options from the US Department of Energy, Naval Reactors Laboratory Field Office, to supply nuclear fuel for the navy's fleet.
Works totalling around $169m are part of the exercise of options included in the $302m contract awarded in February 2014.
Under the options, B&W will supply fuel and provide support activities for the US Naval Nuclear Propulsion Program.
In addition, B&W will be responsible for the development of material for future naval reactors.
NFS president Joel Duling said: "Receiving the award for these second-year contract options is further validation of the excellent work we do at NFS.
"I am proud of our team, and we look forward to supporting the Department of Energy and the US Navy in these critical defense projects through the completion of this contract."
Work under these contracts is being performed at NFS facilities in Erwi, Tennessee and is scheduled to continue through February 2016.
NFS, which currently employs a full-time workforce of around 1,000 people, has been the sole manufacturer of nuclear fuel for the US Navy's fleet of nuclear-powered aircraft carriers and submarines since 1964.
In February this year, B&W's Nuclear Operations subsidiary received contracts worth $535m for the manufacture of naval nuclear reactor components for US Navy submarines and aircraft carriers.