The United States Department of Energy (DOE) seeks contract proposals from domestic companies looking to produce high-assay low-enriched uranium (HALEU) for next-gen nuclear reactors.
The department announced Tuesday that it was issuing a request for proposals and allocating US$500 million to those future contracts amid unprecedented activity in the nuclear industry. Joe Biden’s Inflation Reduction Act implemented in 2022 will provide the funds.
Currently, Russia is the only country commercially producing HALEU. Ohio’s Centrus Energy Corp (NYSE American: LEU) recently produced the first American HALEU in the last 70 years and has a supply contract with the DOE. However, the country’s supply is still limited. About three tablespoons of it can provide enough power for an American’s electricity needs throughout their entire life, according to estimates.
“The path to greater energy security and more climate solutions runs through investments like these, being made at historic scale by President Biden,” Ali Zaidi, assistant to Biden and climate advisor, said. The department estimates that up to 40 metric tons of HALEU may be needed by 2030 as more advanced reactors come online.
Contractors that provide HALEU deconversion services will also receive a portion of the funding. “DOE plans to award one or more contracts to deconvert HALEU as uranium hexafluoride gas to various chemical forms, such as metal or oxide, used to fabricate fuels required by many advanced reactor developers,” the department said in November.
NUCLEAR 101: HALEU stands for high-assay low-enriched uranium.
It's a crucial material required by many advanced reactors to achieve smaller designs, longer operating cycles, and increased efficiencies over current technologies. pic.twitter.com/ZwZmdmk7zZ
— Office of Nuclear Energy (@GovNuclear) January 9, 2024
Read more: ATHA Energy closes C$23.5M financing, continues exploration with stronger balance sheet
Read more: ATHA Energy to acquire Latitude Uranium and 92 Energy, creating industry’s largest uranium portfolio
United Kingdom invests big in HALEU too
The United States is not the only country to invest a large sum of money in enriched uranium recently.
The United Kingdom just announced that it will spend C$510 million on a national HALEU production program. The country aims to reduce reliance on Russia as well and expects to have its first production plant operational in the early 2030s.
The only company currently selling commercial shipments of the commodity is TENEX, a subsidiary of Russia’s state-owned company Rosatom.
The accelerating demand for uranium needed to produce advanced fuel like HALEU and conventional reactor fuel has caused an increased rate of exploration for new deposits.
This is particularly true in Canada’s Athabasca Basin, one of the world’s richest and most underdeveloped uranium resources. Several junior exploration companies like CanAlaska Uranium (TSX-V: CVV), Stallion Uranium (TSX-V: STUD) and ATHA Energy Corp. (CSE: SASK) (OTCQB: SASKF) have ramped up activities in response to favourable market conditions.
CanAlaska just announced that it plans a series of “aggressive” exploration programs in the jurisdiction this year.
ATHA Energy is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
