The United States Department of Energy (DOE) selected six companies to compete for contracts to supply low-enriched uranium (LEU).
Originally reported on Wednesday, this request follows a June proposal request to purchase LEU from domestic sources.
President Joe Biden’s Investing in America plan, which provides USD$2.7 billion, is the support behind the request for proposals. The DOE will acquire LEU from new domestic uranium enrichment sources through this request. These sources may include new enrichment facilities or expansions of existing ones. The overall aim is to support clean energy generation and reduce reliance on Russian imports.
The DOE’s six companies include 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 DOE may sign 10-year supply contracts with these companies. Each company is guaranteed a minimum contract of USD$2 million, and the total value of all contracts could reach USD$3.4 billion over the decade.
“Today’s announcement reinforces the Biden-Harris Administration’s commitment to ensuring consumers across the country have access to affordable, reliable electricity and good-paying clean energy jobs, while building resilient supply chains free from Russian influence,” DOE said.
Russia holds 44 per cent of the world’s uranium enrichment capacity and supplies 35 per cent of US nuclear fuel imports, according to the DOE. In May, President Biden signed the Prohibiting Russian Uranium Imports Act.
In response, Russia announced a temporary ban on enriched uranium exports to the USA in November. There are exemptions for one-off licences issued by the Russian Federal Service for Technical and Export Control.
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The uranium deal will create high quality clean energy jobs
The contracts are expected to have several positive impacts. By increasing domestic production, the U.S. reduces its vulnerability to international supply disruptions, enhancing energy security. The government expects the build-out of new uranium enrichment capacity to create numerous high-quality, clean energy jobs across the country, boosting job creation.
“These contracts generated from this action will help spur the safe and responsible build-out of uranium enrichment capacity in the United States,” said Michael Goff, principle deputy assistant secretary for nuclear energy.
“We must increase our capacity to produce enriched uranium domestically to support the energy security and resilience of the nation.”
Additionally, nuclear power, being a source of clean energy, helps in reducing greenhouse gas emissions, aligning with broader climate goals and providing environmental benefits.
Strengthening the nuclear supply chain could lead to economic benefits through the growth of related industries and technologies, thereby fostering economic growth.
While the initiative is promising, it faces several challenges. Building new facilities or expanding existing ones to meet demand requires significant investment and time, potentially delaying immediate benefits.
Furthermore, compliance with stringent nuclear regulations could slow down the process due to regulatory hurdles. Furthermore, the global nature of the uranium market means that changes in domestic production might influence international prices and trade relations, adding complexity to market dynamics.
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joseph@mugglehead.com
