Nuclear

DOE awards six contracts to build out U.S. advanced nuclear fuel supply chain

These contracts are meant to allow the selected companies to bid on work for deconversion services, a critical component of the HALEU supply chain.
DOE awards six contracts to build out U.S. advanced nuclear fuel supply chain
(A rendering of TerraPower's Natrium Reactor. Image courtesy TerraPower)

The U.S. Department of Energy (DOE) has awarded contracts to six companies meant to spur the buildout of a U.S. supply chain for fuels for advanced nuclear reactors.

Many advanced reactors will require high-assay low-enriched uranium (HALEU) to achieve smaller designs, longer operating cycles, and increased efficiencies over current technologies. These contracts are meant to allow the selected companies to bid on work for deconversion services, a critical component of the HALEU supply chain.

All contracts will last for up to 10 years and each awardee receives a minimum contract of $2 million, with up to $800 million available, subject to the availability of appropriations. 

Selected companies include: 

  • BWXT
  • Centrus
  • Framatome
  • GE Vernova
  • Orano
  • Westinghouse

HALEU is uranium enriched between 5% and 20%, which increases the amount of fissile material to make the fuel more efficient. After enrichment, which is performed while in gaseous uranium hexafluoride form, the material needs to be deconverted to oxide or metal forms that are fabricated into fuel for advanced reactors. 

The U.S. currently lacks commercial HALEU enrichment and deconversion services to support the deployment of advanced reactors, DOE said. DOE also plans to award contracts for enrichment services to support the “full breadth” of the HALEU supply chain. 

The HALEU that DOE acquires through these contracts will be used to support reactors like those under development through DOE’s Advanced Reactor Demonstration Program — TerraPower’s Natrium reactor and X-energy’s Xe-100. 

Earlier this year, DOE released its Fiscal Year 2025 budget request, which included nearly $1.6 billion for the Office of Nuclear Energy (NE). The request included $694.2 million in research and development activities meant to help advance reactor and fuel technologies, address gaps in the domestic nuclear fuel supply chain and utilize the latest artificial intelligence and machine learning tools to optimize performance.

NE requested $188 million to secure a near-term supply of high-assay low-enriched uranium (HALEU) for DOE-supported research and demonstration projects. These efforts include the recovery and downblending of government-owned legacy uranium and ramping up enrichment operations in Piketon, Ohio to help make limited quantities available.  

The funding was meant to complement the DOE’s longer-term strategy to expand its domestic enrichment capacity through purchase agreements with industry partners to help spur demand for additional HALEU production. The recently passed FY24 spending bill directed $2.72 billion to further build out a low-enriched uranium and advanced nuclear fuel supply chain.

More information on the HALEU Availability Program is available here.