Energy Department awards $2.7B to boost nuclear fuels supply chain

(The Center Square) – The U.S. Department of Energy announced it has awarded $2.7 billion in orders to three companies as part of a program aimed at boosting the development of domestic uranium enrichment supply chains over the next decade to support the deployment of advanced nuclear reactors.The program is part of an initiative begun in 2024 aimed at ending the country’s reliance on foreign sources of enriched uranium, such as Russia, which currently dominates the global market for specialized nuclear fuels.These efforts are focused on rebuilding U.S. production of Low-Enriched Uranium (LEU) to ensure fuel supplies for the nation’s 94 existing commercial reactors, while simultaneously developing High-Assay Low-Enriched Uranium (HALEU) –enriched between 5% and 20% – to power future deployments of advanced nuclear reactors.“President Trump is catalyzing a resurgence in the nation’s nuclear energy sector to strengthen American security and prosperity,” said U.S. Secretary of Energy Chris Wright. “Today’s awards show that this Administration is committed to restoring a secure domestic nuclear fuel supply chain capable of producing the nuclear fuels needed to power the reactors of today and the advanced reactors of tomorrow.”Awards of $900 million went to U.S.-based firms American Centrifuge Operating and General Matter for the development of advanced high-assay low-enriched uranium processing capabilities.American Centrifuge Operating, a subsidiary of Maryland-based Centrus Energy Corp., produces centrifuges and related equipment using domestic parts and labor at a plant in Piketon, Ohio. The company’s engineering and manufacturing facility is located in Oak Ridge, Tennessee.General Matter, a nuclear startup company based in San Francisco, is backed by tech billionaire Peter Thiel. The company was awarded funding to build and operate an enrichment facility in Paducah, Kentucky, and plans to repurpose the former Paducah Gaseous Diffusion Plant. The company aims to restore U.S. leadership in nuclear enrichment to power future energy demands, including those from AI data centers, according to its website.The Energy Dept. awarded another $900 million to Orano Federal Services, a global leader in nuclear fuels with headquarters in France, aimed at expanding U.S. production of low-enriched uranium.“Today’s announcement marks a significant milestone for America’s energy independence & TN is ready-made to lead the next generation of clean, reliable nuclear power,” Tennessee Gov. Bill Lee posted Monday on X. “I’m grateful for the Department of Energy’s historic $2.7 billion investment to strengthen domestic uranium enrichment, expand innovation & create American jobs.”The funding for the program was established in the Consolidated Appropriations Act of 2024 as part of former President Biden’s “Investing in America” agenda.The U.S. currently relies on Russia for 20% to 25% of its enriched uranium. To end this dependency, a federal ban on Russian imports took effect in August 2024 that will last until 2040.