The US Department of Energy (DOE) has selected six companies with which it may sign contracts to procure low enriched uranium (LEU) “in order to incentivise the build-out of new uranium production capacity in the United States”. The aim is to ensure “access to affordable, reliable electricity and good-paying clean energy jobs, while building resilient supply chains free from Russian influence”.

Principal Deputy Assistant Secretary for Nuclear Energy Dr Michael Goff said the contracts generated from this action will help spur the safe and responsible build-out of uranium enrichment capacity in the US. “We must increase our capacity to produce enriched uranium domestically to support the energy security and resilience of the Nation,” he noted

The six companies that will be able to compete for future work to supply LEU are:

  • American Centrifuge Operating
  • General Matter
  • Global Laser Enrichment
  • Louisiana Energy Services
  • Laser Isotope Separation Technologies
  • Orano Federal Services

Through these contracts, DOE said it will acquire LEU generated by new domestic sources – either at entirely new facilities or from projects that expand existing capacity. All contracts will last for up to 10 years and each awardee will receive a minimum contract of $2m.

At COP 28, the US co-led a pledge alongside 25 countries to triple globally installed nuclear energy capacity by 2050. DOE said that, to meet this pledge, it would need to deploy additional nuclear energy capacity. This includes new reactors of all sizes, including large reactors, small modular reactors, and microreactors. “We will also need to keep our existing nuclear reactors online, add more capacity through power uprates, and restart recently retired units. This expansion will require a stable source of uranium to fuel the reactors.”

Russia currently has about 44% of the world’s uranium enrichment capacity and supplies approximately 35% of US imports for nuclear fuel. In May, President Biden signed into law a ban on Russian LEU imports that became effective in August. However, to ensure US NPPs do not experience disruptions, DOE introduced a process that allows the Secretary of Energy, in consultation with the Secretary of State and the Secretary of Commerce, to grant a waiver to an importer for specified quantities of Russian LEU under certain circumstances. Any waiver under this provision will terminate not later than 1 January 2028.

DOE said its request for proposals “is intended to spur additional domestic LEU enrichment capacity consistent with these requirements to reduce use of Russian nuclear fuel and ensure LEU demand is met through trusted sources”.