U.S., Centrus Energy in pact to make next-generation nuclear fuel

Manganese X Energy

11/11/2022 16:59

By Timothy Gardner
       WASHINGTON, Nov 11 (Reuters) - The U.S. government and a
unit of Centrus Energy Corp  LEU.A  have a signed an agreement
to start producing fuel expected to be used in next generation
nuclear reactors after the process was delayed by the COVID-19
pandemic.  
    The Department of Energy said late on Thursday that it and
Centrus Energy's American Centrifuge Operating, LLC will share
the $150 million cost 50-50 to demonstrate production of a fuel
called high assay low enriched uranium, or HALEU. 
    The contract will enable production at the company's plant
in Ohio of 20 kilograms of HALEU, enriched up to 19.75% by the
end of 2023, the DOE said. Output is expected to continue in
2024 at 900 kilograms a year, depending on congressional
appropriations, with additional options to produce more material
under the contract in the future, it said. 
    “This demonstration shows DOE’s commitment to working with
industry partners to kickstart HALEU production at commercial
scale to create more clean energy jobs and ensure the benefits
of nuclear energy are accessible to all Americans," Energy
Secretary Jennifer Granholm said in a release. 
    HALEU is expected to be used in reactors in the works by
companies including X-energy and TerraPower, that President Joe
Biden's administration sees as a critical in cutting carbon
emissions to fight climate change.
    Critics have warned that many so-called advanced reactors
pose risks because they can produce plutonium, a nuclear
explosive that militants could try to obtain to make bombs.  
    Currently the only company selling commercial shipments of
HALEU is TENEX, part of Russia's state-owned energy company
Rosatom.
    The Biden administration projects that more than 40 tonnes
of HALEU will be needed before the decade ends, with additional
amounts required each year, to deploy reactors to support its
goal of reaching 100% clean electricity by 2035. 
    The United States has struggled to produce commercial HALEU.
Washington awarded a shared-cost contract in 2019 to Centrus to
build a demonstration facility which was due to start making
HALEU this year. Production got pushed back to 2023, partly
because of delays in obtaining storage containers due to supply
chain issues during the global pandemic, Centrus has said.
 (Reporting by Timothy Gardner; Editing by David Gregorio)
 ((timothy.gardner@thomsonreuters.com; +1 202 380-8348 (Twitter
@timogard); Reuters Messaging:
timothy.gardner.thomsonreuters.com@reuters.net))