An employee walks near used nuclear fuel in a storage pool at the Orano nuclear waste reprocessing plant in La Hague, near Cherbourg, France, January 17, 2023. REUTERS/Stephane Mahe/File Photo Purchase Licensing RightsThe U.S. has awarded six companies contracts to help process a special uranium fuel meant for a new generation of reactors that could be built in coming years, the Energy Department said on Tuesday.
Russia is currently the only country that makes the high-assay low-enriched uranium fuel, or HALEU, in commercial volumes.
The companies that won the contracts and aim to de-convert HALEU are Centrus (LEU.A)，the U.S. division of France's state-owned nuclear fuel company Orano, GE Vernova (GEV.N), BWXT (BWXT.N), French firm Framatome, and Westinghouse.
Deconversion turns gaseous uranium into oxide or metal forms to be made into fuel for reactors. HALEU is uranium enriched to between 5% and 20%, which backers say has the potential to make new high-tech reactors more efficient.
Uranium fuel used in today's reactors is enriched to about 5%.
The administration of President Joe Biden believes nuclear power, which generates virtually emissions-free electricity, is critical in fighting climate change and to meet rising power demand from artificial intelligence and other consumers.
"Boosting our domestic uranium supply won’t just advance President Biden’s historic climate agenda, but also increase America’s energy security, create good-paying union jobs, and strengthen our economic competitiveness," Ali Zaidi, the national climate adviser, said in a statement.
All contracts will last for up to 10 years. Each company will get a minimum contract of $2 million, with up to $800 million available for the services, subject to the availability of appropriations, the Energy Department said.
