The US Department of Energy has committed $2.7 billion to rebuilding domestic uranium enrichment capacity over the next decade, with awards distributed across three companies under milestone-based task orders. World Nuclear News reported that American Centrifuge Operating, General Matter and Orano Federal Services each received $900 million to expand production of conventional low-enriched uranium and high-assay low-enriched uranium.

The department awarded an additional $28 million to Global Laser Enrichment to continue development of next-generation enrichment technology for the nuclear fuel cycle.

Funding was authorized under the Prohibiting Russian Uranium Imports Act. The legislation was designed to reduce US reliance on Russian enrichment services, which supplied a meaningful share of reactor fuel before the import restrictions took effect.

High-assay low-enriched uranium sits at the center of the supply question. The material is enriched to a higher percentage than conventional reactor fuel and is required by most advanced reactor designs now moving through licensing. Domestic production capacity for the material has been limited, creating a bottleneck between reactor approval and reactor operation.

The award structure ties disbursement to production milestones rather than providing capital in advance, an approach the department has applied in other fuel cycle programs. Existing demand supports the nation's 94 operating commercial reactors, while planned advanced reactor deployments represent the incremental volume the program is intended to serve.

For uranium producers and enrichment suppliers, the commitment establishes a decade-long federal demand signal in a market that has historically priced on spot contracts and utility term agreements.

Source: World Nuclear News - https://www.world-nuclear-news.org/articles/doe-awards-usd27-billion-to-strengthen-us-uranium-enrichment