Hungary will begin negotiations to purchase nuclear fuel from the United States as it looks to diversify its supplies, the country’s foreign Minister Peter Szijjarto told the country’s MI state news channel on Wednesday, noting that Budapest needs extra nuclear fuel to meet surging energy demand, and adding that the country would nonetheless continue buying Russian fuel.
Currently, Hungary’s Paks nuclear plant has four Russian-built VVER 440 reactors supplying a combined 2,000 megawatts, but could more than double that capacity with Russia’s state-owned nuclear giant Rosatom building two more reactors with a capacity of 1.2 gigawatts each. “Alongside the existing Russian supplier relations, we are starting consultations on buying nuclear fuel from the United States as well, in order to be able to serve our increased nuclear capacity safely,” Szijjarto told M1.
However, it remains unclear how the United States will be able to supply Hungary with nuclear fuel. According to the U.S. Energy Information Administration (EIA), the U.S. nuclear sector imports ~99% of the ~32 million pounds of uranium concentrate (U3O8) consumed in a typical year, with just 0.05 million pounds produced domestically. In 2023, Canada, Australia and Russia were the leading suppliers of uranium fuel imported into the U.S., with Kazakhstan and Uzbekistan also supplying significant volumes.
The Federal government is, however, implementing policies to diversify the domestic U.S. nuclear fuel supply chain. In 2024, the U.S. Department of Energy (DOE) received $2.7 billion in government funding seeking to ban imports of enriched Russian uranium in a bid to strengthen domestic nuclear fuel production. This funding is intended to boost the U.S. nuclear fuel supply chain by supporting projects to expand domestic uranium enrichment capacity, including the production of enriched uranium needed for certain advanced reactors.
Maryland-based Centrus Corp. (NYSE:LEU) is the United States’ only supplier of advanced uranium fuel, particularly for High-Assay, Low-Enriched Uranium (HALEU), and the only U.S. entity licensed to produce the fuel. The company is also a key player in restoring domestic uranium enrichment capabilities, making it a critical supplier for the future of American advanced nuclear reactors.
By Alex Kimani for Oilprice.com
More Top Reads From Oilprice.com:
- India May Reduce Russian Oil Imports for Trade Deal
- Japan’s New PM Pushes for Faster Nuclear Reactor Restarts
- Kazakhstan to Keep New Fuel Price Freeze Until Spring
