Wednesday, 11 December 2024
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The request for proposals is supported by USD2.7 billion from President Joe Biden’s Investing in America plan to boost the domestic nuclear fuel supply chain. Through the request for proposals, DOE will acquire low-enriched uranium (LEU) generated by new sources of domestic uranium enrichment capacity. These can include new enrichment facilities or projects that expand the capacity of existing enrichment facilities. DOE intends to sell the LEU to utilities operating US reactors to support clean energy generation and cut reliance on Russian imports.
DOE has now announced the six companies from which it can sign LEU supply contracts. These are: American Centrifuge Operating LLC, General Matter Inc, Global Laser Enrichment LLC, Urenco subsidiary Louisiana Energy Services LLC, Laser Isotope Separation Technologies Inc and Orano Federal Services LLC.
All contracts will last for up to 10 years and each awardee receives a minimum contract of USD2 million, with a maximum value for all awardees of USD3.4 billion over the 10-year period.
“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.
Principal Deputy Assistant Secretary for Nuclear Energy Michael Goff said: “These contracts generated from this action will help spur the safe and responsible build-out of uranium enrichment capacity in the United States. We must increase our capacity to produce enriched uranium domestically to support the energy security and resilience of the nation.”
At COP28, the USA co-led a pledge alongside 25 countries to triple globally installed nuclear energy capacity by 2050, DOE noted. To meet this pledge, the USA would need to deploy additional nuclear energy capacity. This includes new reactors of all sizes, including large reactors, small modular reactors and microreactors. DOE said the USA will also need to keep its existing nuclear reactors online, add more capacity through power uprates, and restart recently retired units. This expansion, it says, will require a stable source of uranium to fuel the reactors.
Russia currently has about 44% of the world’s uranium enrichment capacity and supplies some 35% of US imports for nuclear fuel, according to DOE.
President Biden signed the Prohibiting Russian Uranium Imports Act in May after the bill was passed unanimously by the US Senate. The prohibition came into effect in August, and is scheduled to last until the end of 2040. Waivers may be granted to allow the import of limited amounts of Russian-origin LEU, under certain circumstances, until 1 January 2028.
In response to that legislation, in November Russia announced a temporary ban on exports of enriched uranium to the USA. However, exemptions will be made for deliveries under one-off licences issued by the Russian Federal Service for Technical and Export Control.
