U.S. Energy Department Selects Six Companies to Procure Domestic Low-Enriched Uranium

The U.S. Energy Department on Dec. 10 announced the selection of six  companies to procure domestic Low-Enriched Uranium or LEU. The department will sign contracts with American Centrifuge Operating LLC, General Matter Inc., Global Laser Enrichment LLC, Louisiana Energy Services LLC, Laser Isotope Separation Technologies Inc., and Orano Federal Services LLC. The minimum value of each contract is $2 million with a duration of up to 10 years.

The department is working to establish a strong domestic supply chain for LEU to power the current fleet of nuclear reactors in the U.S. A reliable domestic LEU supply will enhance the country’s energy security and reduce its reliance on countries like Russia for LEU.

In May, the U.S. government passed legislation to ban uranium imports from Russia, which took effect in August. Along with this ban, the government also announced $2.72 billion in federal funding to expand domestic LEU supplies. Announcing the ban, the department noted that Russia has around 44 percent of the world’s uranium enrichment capacity and accounted for about 35 percent of U.S. imports for nuclear fuel.

In October, the department also announced four contracts to bolster the domestic supply of high-assay low-enriched uranium, or HALEU, which is uranium enriched between 5 and 20 percent. HALEU helps to achieve smaller designs for advanced nuclear reactors, improving efficiency and lifespan.

Nuclear energy supplies around 20 percent of the electricity demand in the U.S. and around 48 percent of carbon-free electricity in 2023. Nuclear power is one of the most promising sources of energy that could help the U.S. meet its carbon emissions targets in the next few years and has acquired bipartisan support.

This year, the department ramped up efforts to advance the nuclear industry in the U.S., unveiling a new roadmap aiming to triple current nuclear capacity by 2050. In October, the department closed a $2.8 billion loan with Holtec Palisades LLC to recommission the 800-megawatt Palisades Nuclear Plant in Michigan. This project marks the first restart of a previously decommissioned nuclear facility in the U.S.