The US Energy Department said on Tuesday it is offering initial contracts to six companies to produce domestic uranium fuel for conventional nuclear plants to generate electricity.
The department is trying to kick-start a domestic uranium fuel supply chain to reduce dependence on Russia, from which US reactors get about 25% of their enriched uranium in recent years. The United States put a ban on the imports from Russia as part of a package of sanctions on Moscow over its full scale invasion of Ukraine. The ban allows waivers until 2028.
The following companies won contracts: Centrus’s American Centrifuge Operating; General Matter; Global Laser Enrichment; Urenco’s Louisiana Energy Services; Laser Isotope Separation Technologies and Orano Federal Services. Four of those companies got initial US contracts in October to produce a more enriched fuel called high-assay low-enriched uranium, or HALEU, to be used in smaller reactors that are not yet commercial.The contracts at the start are for a minimum of $2 million. They will last for up to 10 years with $2.7 billion available for the program.Nippon Steel and US Steel are poised to pursue litigation over the process if Biden decides to block the merger, Bloomberg sources say.