US DOE Awards Contracts to Boost Domestic HALEU Supply Chain

The United States Department of Energy (DOE) has taken significant strides to enhance the domestic supply chain for high-assay low-enriched uranium (HALEU) by awarding contracts to six companies. These contracts, valued at a minimum of USD 2 million each, cover deconversion services, which are crucial for the production of HALEU. Among the companies selected are BWXT, Centrus, Framatome, GE Vernova, Orano, and Westinghouse.

The total value of these contracts could reach up to USD 800 million over a period of up to 10 years, depending on appropriations. This strategic move aims to foster competition and enable the DOE to choose the best fit for future work assignments, according to the department’s statement.

HALEU, which is uranium enriched to uranium-235 levels between 5% and 20%, is integral to the advanced nuclear fuel needed for the next generation of reactor designs. However, the United States currently lacks commercial HALEU enrichment and deconversion services, which are necessary for the deployment of advanced reactors. The DOE has identified these reactors as essential to achieving its greenhouse gas reduction and climate goals.

The Energy Act of 2020 mandated the establishment of a program to ensure access to HALEU for civilian domestic research, development, demonstration, and commercial use. Deconversion services transform enriched gaseous uranium hexafluoride into oxide or metal forms, which are subsequently fabricated into fuel for advanced reactors.

Deputy Secretary of Energy David Turk emphasized the importance of developing a robust domestic nuclear fuel supply chain. “Today’s announcement underscores the Biden-Harris Administration‘s continued commitment to strengthening our energy and national security by eliminating America’s reliance on Russian uranium for civil nuclear power,” Turk stated. Notably, Russia and China are currently the only nations with the infrastructure to produce HALEU at scale.

Orano, one of the companies awarded a contract, stated that its team comprises various affiliates and partners, including Fluor, Spectra Tech, and Shine Technologies. Orano USA CEO Jean-Luc Palayer said, “Our team of expert companies represents the full range of capabilities needed for success and certainty of project delivery, plus the benefits from our strong relationships with community partners.”

The HALEU procured through these contracts is expected to support reactors such as TerraPower’s Natrium and X-energy’s Xe-100, both of which are part of DOE’s Advanced Reactor Demonstration Program. The DOE also intends to award contracts for enrichment services to support the entire HALEU supply chain.

In alignment with these developments, the US Inflation Reduction Act, signed into law in 2022, provided a USD 700 million package to support the domestic HALEU supply chain. Additionally, the US Administration’s 2025 budget request, submitted to Congress earlier this year, included USD 188 million to secure a near-term HALEU supply.