Deal also includes plans to explore additional cooperation in nuclear fuel sector
US nuclear fuel company Centrus Energy has signed an agreement with Korea Hydro & Nuclear Power (KHNP) and Posco International to explore potential South Korean investment in the expansion of its uranium enrichment plant in Piketon, Ohio.
The non-binding memorandum of understanding is aimed at facilitating additional private sector capital to support the potential expansion of Centrus’ enrichment capacity in Ohio.
The agreement also calls for the companies to explore additional opportunities for cooperation, such as additional supply agreements for low-enriched uranium (LEU) for nuclear reactors and high-assay, low-enriched uranium (Haleu) for next generation reactors.
Centrus and KHNP also agreed to increase the supply volume of enriched uranium under a contract signed in February.
The entire supply commitment, including the expanded volumes, is contingent upon Centrus receiving the federal funding to build a new LEU production capacity.
Centrus chief executive officer Amir Vexler said the latest agreement reflects strong demand for US enrichment capability and is a potential avenue for private investment.
Centrus said South Korea represents one of the largest potential export markets for US enriched uranium and is leading the development and construction of new reactors around the world.
State-owned KHNP is the world’s third largest nuclear plant operator. It has 26 nuclear reactors in operation and two under construction, KHNP
POSCO International, a global leader in international trading and energy infrastructure development, is working to develop a next-generation high-temperature gas reactor powered by Haleu.
Centrus Energy subsidiary American Centrifuge Operating said in June it had produced and delivered 900 kg of Haleu to the US Department of Energy, reaching a critical milestone as the company pioneers first-of-a-kind production of the fuel that will be needed for many next-generation nuclear power plants.
The US government has been concerned for several years that Russia has a monopoly on Haleu manufacturing. Washington has taken steps to incentivise the development of domestic production.
