U.S. Department of Energy issues RFP for uranium enrichment services

The U.S. Department of Energy (DOE) issued a request for proposals (RFP) for uranium enrichment services last week.

The goal of the initiative is to help establish a reliable domestic supply of fuels using high-assay low-enriched uranium (HALEU) — a crucial material needed to deploy advanced nuclear reactors. Currently, HALEU is not commercially available from U.S.-based suppliers, so boosting domestic supply could spur the development and deployment of advanced reactors in the United States.

“Nuclear energy currently provides almost half of the nation’s carbon-free power, and it will continue to play a significant part in transitioning to a clean energy future,” U.S. Secretary of Energy Jennifer Granholm said. “President Biden’s Investing in America is strengthening our national and energy security through the domestic buildup of a robust HALEU supply chain, helping bring advanced reactors online in time to combat the climate crisis.”

A total of up to $500 million will be available through this RFP and a separate one, released in November, with funding coming from the Inflation Reduction Act. Specifically, the DOE is seeking services to deconvert the uranium enriched through this RFP into metal, oxide, and other forms to be used as fuel for advanced reactors.

“The Biden-Harris Administration knows that nuclear energy is essential to accelerating America’s clean energy future,” Assistant to the President and National Climate Advisor Ali Zaidi said. “Boosting our domestic uranium supply won’t just advance President Biden’s historic climate agenda, but also increase America’s energy security, create good-paying union jobs, and strengthen our economic competitiveness. The path to greater energy security and more climate solutions runs through investments like these, being made at historic scale by President Biden.”

Advanced nuclear power designs using HALEU fuels represent a critical set of technologies that can help to reach U.S. emissions targets and contribute to America’s recent pledge with 21 other countries to triple nuclear power globally by 2050.

The existing U.S. fleet of nuclear reactors runs on uranium fuel that is enriched up to five percent with uranium-235—the main fissile isotope that produces energy during a chain reaction. However, most U.S. advanced reactors require HALEU, which is enriched between 5 percent to 20 percent, to achieve smaller and more versatile designs.

Under the HALEU enrichment contracts, which have a maximum duration of 10 years, the government assures each contractor a minimum order value of $2 million to be fulfilled over the term of the contract. Enrichment and storage activities must occur in the continental United States and comply with the National Environmental Policy Act. Proposals are due by 5 p.m. MST on March 8.