Funding supports deconversion essential for nuclear fuel supply chain.

Amid growing efforts to secure a reliable domestic nuclear fuel supply, the U.S. Department of Energy has awarded contracts to six companies as part of an $800 million initiative to bolster the deconversion of high-assay low-enriched uranium (HALEU), a critical component of the supply chain for advanced nuclear reactors.

Over the past few years, the U.S. has been actively working to elevate nuclear energy as a critical component of its clean energy strategy. This includes spotlighting several promising nuclear projects, offering historic tax incentives to preserve the existing fleet of nuclear plants, and ultimately driving efforts to revitalize a sector that had been steadily on the decline.

This all came to a head in May with the passage of the Prohibiting Russian Uranium Imports Act, which set a deadline on the availability of roughly 35% of the supply of enriched uranium to the country, igniting the need for reliable domestic supply.

Although seemingly drastic, this move unlocked $2.7 billion in congressional funds specifically earmarked for rebuilding the infrastructure and supply chain necessary to restore domestic uranium production.

With access to these funds, the Department of Energy has taken swift action, starting with the allocation of $17 million earlier this year for critical safety and licensing projects necessary for advancing HALEU.

In addition to these financial steps, DOE has also issued Requests for Proposals to encourage industry participation in building the infrastructure needed for domestic HALEU production.

And now, with up to $800 million allocated through the HALEU Availability Program, DOE is launching new contracts to further develop a reliable domestic HALEU supply chain for advanced reactors.

A critical step in the nuclear fuel cycle is HALEU deconversion, where enriched uranium hexafluoride (UF6), a byproduct of the enrichment process, is chemically processed to remove fluoride and convert it into oxide or metal forms suitable for fabrication into nuclear fuel.

Not to be confused with regular deconversion, which primarily deals with converting depleted uranium hexafluoride (DUF6) into stable uranium oxide for long-term storage and disposal, HALEU deconversion refers to the processing of enriched UF6 into oxide or metal forms suitable for fuel fabrication.

Regular deconversion focuses on safely handling the byproducts of enrichment, while HALEU deconversion is a critical link in preparing enriched uranium for advanced reactor use. This deconversion is an essential step between enrichment and final fuel fabrication, ensuring the enriched material is safe and efficient for advanced reactors.

As nuclear power is currently America’s largest source of carbon-free energy and provides stable, reliable, base-load power, advanced nuclear power designs that implement HALEU fuels are the next step in making reactors more efficient and sustainable.

While the U.S. currently lacks commercial HALEU enrichment and deconversion services to support the deployment of advanced reactors, DOE has enabled contracts for both, starting with those for deconversion services.

Announcing a search for awardees back in November, DOE has selected six companies to aid in HALEU deconversion and production – in the hopes of creating strong competition and allowing the federal agency to select the best fit for future work. The current contracts will last up to 10 years, and each awardee will receive a minimum contract of $2 million, capped at $800 million for this specific target, subject to the availability of appropriations.

The selected companies include:

• BWXT

• Centrus

• Framatome

• GE Vernova

• Orano

• Westinghouse

Notably, both BWXT and Westinghouse are also participants in the earlier $17 million program focused on criticality benchmarking projects.

Any HALEU acquired from 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.