US DOE awards contracts to spur HALEU supply chain

Wednesday, 9 October 2024

The US Department of Energy (DOE) has awarded contracts to BWXT, Centrus, Framatome, GE Vernova, Orano and Westinghouse. The contracts will last for up to 10 years, with up to USD800 million available in total for these services, subject to the availability of appropriations, and will create "strong competition" allowing DOE to select the best fit for future work, it said.

High-assay low-enriched uranium (HALEU) is uranium enriched to between 5% and 20% uranium-235. It will be used in the advanced nuclear fuel required for most of the next-generation reactor designs currently under development. But the USA does not have the commercial HALEU enrichment and deconversion services to support the deployment of advanced reactors, which DOE says are essential to meeting its greenhouse gas reduction and climate goals.

The DOE is pursuing several pathways to secure a domestic supply of HALEU: The Energy Act of 2020 directed the establishment of the HALEU Availability Program to ensure access to HALEU for civilian domestic research, development, demonstration, and commercial use.

Deconversion involves transforming the gaseous uranium hexafluoride which has undergone enrichment into oxide or metal forms that are fabricated into fuel for advanced reactors, and is a critical part of the HALEU supply chain.

Building a strong, reliable domestic nuclear fuel supply chain will help the USA reach its climate goals while also protecting the environment and creating good-paying, high-quality jobs, Deputy Secretary of Energy David Turk said. "Today's announcement underscores the Biden-Harris Administration's continued commitment to strengthening our energy and national security by our eliminating America's reliance on Russian uranium for civil nuclear power," he added. Russia and China are the only countries that currently have the infrastructure to produce HALEU at scale.

Orano said its team brings together the capabilities and experience of its affiliates, led by Orano Federal Services with teaming partners including Fluor, Spectra Tech, Shine Technologies and others. "Our team of expert companies represents the full range of capabilities needed for success and certainty of project delivery, plus the benefits from our strong relationships with community partners. With the US goal of tripling nuclear energy by 2050, we need this active focus on developing a secure domestic fuel supply for all reactors," Orano USA CEO Jean-Luc Palayer said.

The HALEU acquired through these contracts will be used to support reactors such as TerraPower's Natrium reactor and X-energy's Xe-100, which are being developed through DOEs Advanced Reactor Demonstration Program. DOE said it also plans to award contracts for enrichment services to support the full breadth of the HALEU supply chain.

The US Inflation Reduction Act - signed into law in 2022 - included a USD700 million support package to support the development of a domestic HALEU supply chain, and the US Administration's 2025 budget request submitted to Congress in March this year included USD188 million to secure a near-term supply of HALEU.