Washington looking to deploy capacity in bid to reduce reliance on imports from Russia
US nuclear fuel company Centrus Energy has signed a contract to finalise the terms of the $900m (€786m) contract it won from the US Department of Energy (DOE) earlier this year to support deployment of large-scale production capacity for high-assay, low-enriched uranium (Haleu) as part of the company’s multi-billion-dollar capacity expansion that will also include low-enriched uranium (LEU).
The new Haleu enrichment contract calls for Centrus to deploy commercial-scale Haleu production capacity at its enrichment facility in Piketon, Ohio. It also includes options for up to $170m in Haleu purchases for DOE missions. The total contract value with all options included is $1.07bn.
“Today’s announcement marks another milestone in our expansion, as we pivot from a technology demonstration contract to the new, larger contract aimed at commercial scale production,” said Centrus president and chief executive officer Amir Vexler.
Maryland-based Centrus said the government’s investment from the contract will be matched several times over with billions of dollars in capital.
Centrus won a contract in 2019 to build a cascade of advanced centrifuges at Piketon to demonstrate Haleu production with US technology. That demonstration contract was modified and extended to allow for a longer period of Haleu production.
Centrus said it has now completed all Haleu production called for under the existing demonstration contract.
Production of the final 900 kg of Haleu uranium hexafluoride (UF6) required under that contract was completed in mid-June, two weeks ahead of schedule, with a cumulative total of more than 1,900 kg produced over the life of the contract.
Centrus is now moving from the old demonstration contract to commercialisation with the newer, larger enrichment contract. The first new capacity is expected to come online at Piketon by 2029.
Supplying Customers’ Near-Term Needs
In the interim, Centrus intends to privately operate the existing Haleu cascade on a commercial basis to begin supplying the near-term needs of its customers.
Centrus said its enrichment capacity build-out will based on “customer demand and capital resources”.
LEU is the basic material to fabricate nuclear fuel. Haleu is nuclear fuel enriched with 5% to 20% of the fissile isotope U-235. It is the cornerstone of next-generation nuclear power, offering greater energy density and longer operating cycles for small modular reactors than traditional 5% enriched LEU fuels.
According to data from the Energy Information Administration, Russia supplies roughly 24% to 27% of the LEU – or enrichment services – for US nuclear power plants. After Russia, 12% of LEU comes from France, 8% from the Netherlands, and 7% from the UK. The US relies on foreign sources for 71.7% of its LEU.
The US Congress enacted the Prohibiting Russian Uranium Imports Act in May 2024, banning imports of Russian LEU. However, waivers are available, allowing continued imports from Russia until 2028 to prevent immediate reactor shutdowns, with a full ban taking effect later.
The US government has also long worried about Russia’s dominance in Haleu supply and is pushing for domestic production.
