U.S. Energy Department Announces $16 Million for HALEU Transportation Packages

The U.S. Energy Department on Nov. 19 announced a $16 million funding opportunity for the research and development of High-Assay Low-Enrichment, HALEU, transportation technology. The funding aims to develop viable and cost-effective solutions to transport HALEU, and to obtain licensing from the Nuclear Regulatory Commission (NRC) for the new technology.

The Energy Act of 2020 authorized the department to establish a program to perform research, development, and commercialization activities for HALEU. In response, the department launched the HALEU Availability Program, which has access to $700 million from the 2022 Inflation Reduction Act.

HALEU is uranium enriched between 5 and 20 weight percent U-235 leading to more efficient fuel that enables smaller reactor designs and longer operating life. The main problem with HALEU is that it is difficult to transport and rely on highly enriched uranium, HEU, casks. Since these casks are not designed for HALEU, only small amounts of HALEU can be shipped and the transport cost is significantly higher.

The goal of this funding program is to design economical NRC-approved transportation methods. There are two solutions to this issue, design entirely new transport package designs or modify existing ones, and these are the two topic areas under which the department will categorize funding applications. Both topic areas will work toward obtaining NRC licensing for solutions.

For entirely new designs, the department expects a longer award duration and more funding to cover greater costs compared to modification of existing designs. For new designs, $12 million in total funding is available for four awards and an award duration of three years for each project. For modifying existing designs, $6 million in total funding is available for four awards, with an award duration of up to two years for each selected project.

Last month, the department announced contracts with four companies, namely, Louisiana Energy Services, Orano Federal Services, General Matter, and American Centrifuge Operating, to boost the domestic HALEU supply chain. The contracts have a 10-year duration each, and a minimum value of $2 million.

The application deadline for the funding opportunity is Jan. 21, 2025.