The UK Department for Energy Security & Net Zero (DESNZ) has updated its HALEU deconversion competition. DESNZ notes that the next generation of nuclear reactors – Advanced Modular Reactors (AMRs) – will have different characteristics to those that have come before. These new designs will require uranium at a higher enrichment level, up to 19.75% – High Assay Low Enriched Uranium (HALEU), which is currently only supplied commercially by Russia.
DESNZ has therefore announced up to £300m ($386m) for the establishment of a domestic HALEU capability by 2031, to support AMR and research reactors in the UK and overseas. “This will include HALEU enrichment, development of deconversion as well as transport capabilities and relevant regulatory guidelines.”
In May, the UK government announced the first tranche of this funding, awarding £196m to Urenco to deliver a first of a kind HALEU enrichment capability on a commercial scale, targeting first operations in 2031.
The HALEU programme is aligned with the AMR RD&D programme of work which began in 2023, under which four pre-FEED (Front-End Engineering Design) studies were awarded to projects developing advanced modular high temperature gas reactor (HTGR) technologies. In addition, two organisations were awarded contracts to produce pre-FEED studies for developing Coated Particle Fuel (CPF) for HTGR technologies. DESNZ welcomed any organisation making a bid to engage with the HTGR market to understand demand in the HALEU supply chain.
Under the competition, grant funding of up to £70m is available to support the development of a commercial HALEU deconversion facility in the UK. Industry co-funding will be required at a minimum rate of 70:30 (government: industry). The grant is intended to support:
- The design and build of a commercial-scale oxide HALEU deconversion facility; and
- The design of a commercial-scale metal HALEU deconversion facility.
The successful Applicant will be expected to collaborate with HALEU delivery partners and across the wider HALEU supply chain and may include collaboration with the Nuclear National Laboratory (NNL) which is being considered for funding under the HALEU Programme. If successful NNL will use HALEU grant funding to build UK skills and capability in oxide and metal deconversion via a deconversion test rig and associated R&D programme. “If the NNL project goes ahead, we would anticipate that the successful applicant would work with NNL to derisk and optimise their plant design and facility operations,” DESNZ notes.
For the design and build of an oxide deconversion facility, the application must include a proposal to design, build, and commission a commercial-scale oxide HALEU deconversion facility, to be operational by 2031 in the UK. The facility should have an initial capacity to process at least 10,000 kgU a year but should be designed to allow for future expansion of production up to at least 30,000 kgU a year. The facility should also permit the future inclusion of a metal deconversion line in the event of market growth.
For the detailed design of a metal deconversion facility, the application must include, at a minimum, a proposal for the detailed design of a commercial-scale metal HALEU deconversion facility, with a minimum capacity of 5,000 kgU a year. Within the budget and time limits of the project, applications will be assessed on how far along the design process they will be able to progress, with additional scoring awarded to any bids that are able to go beyond detailed design. Applicants must reach at least detailed design, with the appropriate associated Hazard and Operability Analysis (HAZOP) and safety case documentation.
The application window in stage 1 will be open from 1 July until 9 September and applicants can submit questions of clarification until 5 September. The Department will publish these questions and answers on gov.uk before the application window closes.
In Stage 2, applications will be assessed against the eligibility criteria including financial due diligence. In Stage 3, applications will be evaluated against the detailed technical and deliverability, strategic, economic and social value criteria. In Stage 4, DESNZ will conduct further in depth financial and organisational due diligence. Applications will be accepted from consortia and partners, as well as individual organisations.
