DOE announces $2.7 billion funding to boost U.S. nuclear fuel production, aims to replace Russian imports and enhance energy security.

In a major stride toward energy independence, the U.S. Department of Energy has announced a $2.7 billion initiative under President Biden's Investing in America agenda to revitalize the nation's nuclear fuel supply chain, severing ties with Russian imports and fortifying domestic energy security.

Over the past few years, DOE has taken several steps to reposition nuclear as a viable clean energy source. These include an exciting nuclear watch list, offering historic tax incentives, and pushing for a revitalization of the nuclear sector from its decline.

The recent ban on Russian uranium appears to be a strategic trump card, positioning the United States to regain its stature in global nuclear leadership.

With the latest funding, DOE has issued a request for proposals (RFP) to purchase domestic supply of low-enriched uranium (LEU).

“DOE is helping jumpstart uranium enrichment capacity here in the United States, which is critical to strengthening our national security and growing our domestic nuclear industry,” said U.S. Secretary of Energy Jennifer Granholm. “Today’s announcement underscores America’s commitment to remaining the global leader in nuclear energy for generations to come.”

As the U.S. faces a roughly three-year timeline before existing uranium stockpiles are depleted, developing domestic LEU capacity is crucial. This move ensures a reliable fuel supply is available to support both current energy needs and future technological advancements.

This funding is aimed at ensuring adequate fuel supply is available from trusted sources to maintain the current fleet of U.S. reactors – which power roughly 20% of the nation’s electricity needs – and build a strong base to supply future deployments of cutting-edge nuclear technologies.

Centrus Energy Corp.

The U.S. Department of Energy is currently supporting a three-year, $170 million cost-shared demonstration project with Centrus Energy.

Through this RFP, DOE aims to acquire LEU generated by new sources of domestic uranium enrichment capacity, including new enrichment facilities or projects that expand the capacity of existing enrichment facilities.

DOE intends to sell the LEU to utilities operating U.S. reactors to support clean energy generation and fully sever reliance on Russian imports.

“Strengthening our domestic nuclear fuel supply chain will be critical as we continue to move from an energy system reliant on foreign suppliers and fossil fuels to one that embraces cleaner sources of power and domestic manufacturing,” said Assistant to the President and National Climate Advisor Ali Zaidi. “Today’s announcement is exactly the kind of investment we need to further build and protect our nuclear energy supply and deliver the clean, affordable, reliable energy that our communities and industries are demanding.”

As DOE works to support national clean energy and energy security targets through these actions, it also requires that successful applicants deliver local benefits for impacted communities and prioritize environmental justice in their activities as part of the Justice40 Initiative.

DOE plans to award two or more contracts, which will last for up to 10 years. Proposals are due by Aug. 26.