The U.S. Department of Energy (DOE) has announced it will finance $2.7bn to boost domestic supply chains for nuclear fuel.
Issuing a request for proposals (RFP), the DOE aims to purchase low-enriched uranium (LEU) from domestic sources to support the nation’s energy security and reduce dependency on potentially volatile import markets.
The funding will help to advance the US’ uranium enrichment capacity, promoting market diversity and ensuring a reliable supply of nuclear fuel to power the country’s energy transition.
The news follows the recent announcement that the US will invest €900m to increase the deployment of small modular reactors.
Jennifer Granholm, the US Secretary of Energy, emphasised the significance of the funding: “DOE is helping jumpstart uranium enrichment capacity here in the United States, which is critical to strengthening our national security and growing our domestic nuclear industry.
“Today’s announcement underscores America’s commitment to remaining the global leader in nuclear energy for generations to come.”
Why is the US investing in nuclear fuel?
The development of domestic nuclear fuel capacity in the US is crucial for several reasons, primarily related to energy security, economic stability, and environmental sustainability.
Firstly, energy security is significantly enhanced by reducing reliance on foreign sources of nuclear fuel.
By developing domestic capabilities, the US can ensure a stable and uninterrupted supply of fuel for its nuclear reactors, which are essential for generating a substantial portion of the nation’s low-carbon electricity.
This reduces vulnerability to geopolitical tensions and market fluctuations that could disrupt supply chains.
Economic and environmental benefits
Economically, investing in domestic nuclear fuel production creates jobs and stimulates growth in related industries, from mining and refining to engineering and research.
It also positions the US as a leader in nuclear technology, enabling it to export fuel and technology, thereby strengthening its global competitive edge.
Environmentally, increasing nuclear power production through secure domestic fuel supplies supports the transition to a low-carbon energy future.
Nuclear power is a reliable and efficient source of clean energy that can significantly reduce greenhouse gas emissions compared to fossil fuels.
By ensuring a steady supply of nuclear fuel, the US can maintain and potentially expand its nuclear fleet, contributing to climate change mitigation efforts.
How will the funding be employed?
The DOE funding will be used to obtain LEU generated by new sources of domestic uranium enrichment capacity, including new enrichment facilities or projects that expand the capacity of existing enrichment facilities.
Subsequently, the DOE plans to sell the LEU to utilities operating reactors in the US to support clean energy generation.
Assistant to the President and National Climate Advisor Ali Zaidi, added: “Strengthening our domestic nuclear fuel supply chain will be critical as we continue to move from an energy system reliant on foreign suppliers and fossil fuels to one that embraces cleaner sources of power and domestic manufacturing.
“Today’s announcement is exactly the kind of investment we need to further build and protect our nuclear energy supply and deliver the clean, affordable, reliable energy that our communities and industries are demanding.”
