The U.S. Department of Energy (DOE) has taken a significant stride in advancing domestic nuclear fuel readiness and reactor development by issuing its first round of high-assay low-enriched uranium (HALEU) allocations. This move, announced on April 9, targets five American nuclear developers, marking a pivotal moment in the nation’s nuclear energy landscape. The recipients—TRISO-X, TerraPower, Kairos Power, Radiant Industries, and Westinghouse Electric Co.—represent a mix of companies from the Advanced Reactor Demonstration Program (ARDP) Pathway 1 awardees, those planning demonstrations in the DOE’s DOME test bed, and select ARDP risk reduction participants.
The DOE received HALEU requests from 15 companies, but for this inaugural round, it prioritized five that met specific criteria, with three requiring fuel delivery by 2025. This allocation sets the stage for broader distributions in the coming months, as the agency plans to continue HALEU allocations to additional companies. The DOE will now initiate the contracting process, with some companies potentially receiving their HALEU as early as this fall.
The HALEU allocations are part of the HALEU Availability Program (HAP), established under the Energy Act of 2020 to ensure access to HALEU for civilian research, development, demonstration, and early commercial deployment. Unlike the existing U.S. fleet, which runs on uranium fuel enriched up to 5% with uranium-235 (U-235), HALEU is enriched between 5% and 20%. This material is crucial for advanced reactors, including fast reactors, molten salt reactors, and microreactors, and can also boost the performance of operating reactors.
Currently, commercial HALEU supply is limited to Russia’s Rosatom subsidiary TENEX, raising national security and energy independence concerns. China also has the infrastructure to produce HALEU at scale. The DOE intends to make 21 metric tons of HALEU available by June 30, 2026, to support near-term industry needs, with a scheduled release of 3 metric tons by Sept. 30, 2024; 8 metric tons by Dec. 31, 2025; and 10 metric tons by June 30, 2026.
The DOE will likely draw HALEU from surplus stockpiles managed by the DOE and the National Nuclear Security Administration (NNSA) at several federal sites, including the Y-12 National Security Complex in Tennessee, the Savannah River Site in South Carolina, and the Idaho National Laboratory. Simultaneously, the DOE is supporting limited HALEU production from Centrus Energy’s American Centrifuge Plant in Piketon, Ohio, which began HALEU enrichment operations in October 2023.
This development is a game-changer for the nuclear industry. The allocation of HALEU to these five companies will accelerate the development and demonstration of advanced reactors, bringing the U.S. closer to energy independence and reducing reliance on foreign suppliers. The DOE’s strategic move to build a full HALEU supply chain, from enrichment to deconversion and fabrication, underscores its commitment to bolstering domestic nuclear fuel readiness.
The selected companies represent a diverse range of reactor types and project timelines. TRISO-X, a subsidiary of X-energy, is advancing the nation’s first commercial-scale HALEU fuel fabrication facility in Oak Ridge, Tennessee. TerraPower, backed by significant private funding and DOE support, is developing its first Natrium power plant in Wyoming, aiming for commercial operation by 2031. Kairos Power, Radiant Industries, and Westinghouse Electric Co. are also poised to make significant contributions to the nuclear energy sector with their respective projects.
The DOE’s decision to allocate HALEU to these companies is not arbitrary. The HALEU Allocation Process outlines criteria designed to ensure that material is distributed based on project readiness, alignment with DOE missions, and near-term fuel needs. This approach prioritizes developers positioned to use the fuel on an accelerated timeline, ensuring that the allocations drive meaningful progress in the nuclear energy sector.
The implications of this news are far-reaching. The allocation of HALEU will likely spur innovation and competition among nuclear developers, accelerating the development of advanced reactors. This, in turn, could lead to a more diverse and resilient nuclear energy landscape, better equipped to meet the challenges of the 21st century. The DOE’s strategic investments in HALEU production and supply chain development will also create jobs and stimulate economic growth, further strengthening the U.S. nuclear industry.
Moreover, this move challenges the status quo by reducing dependence on foreign suppliers and enhancing national security. By investing in domestic HALEU