The Nuclear Fuel Fund, announced in July, will award grants to businesses involved in uranium conversion, a key stage in the process of creating nuclear fuel from the metal. It will remain open for applications until 20 February.
It will support projects such as fuel supply options for light-water reactors, including future small modular reactors. It will also look to support projects producing new fuel types that will be needed to supply advanced modular reactors, likely to be in operation from the 2030s, such as high-assay low-enriched uranium, or Haleu.
The government said the fund would “encourage investment in new and robust fuel production capabilities in the UK, to reduce reliance on civil nuclear and related goods from Russia” and back its ambition to secure up to 24GW of nuclear power by 2050.
“Record high global gas prices, caused by Putin’s illegal invasion of Ukraine, have highlighted the need for more home-grown renewable energy, but also UK generated nuclear power – building more plants, and developing domestic fuel capability,” minister for energy and climate Graham Stuart said.
Springfields Site ‘Of Strategic Importance’
Up to £13m of the fund has already been awarded to Westinghouse’s Springfields nuclear fuel manufacturing site in northwest England.
The government said Springfields – which has provided nuclear fuel fabrication services since the mid-1940s – has strategic importance to producing fuel for the current UK advanced gas-cooled reactor fleet.
The funding will mean the UK has the option of being less reliant on imports from abroad and will help Westinghouse develop the capability convert both reprocessed uranium and freshly mined uranium to make new fuel.
Energy supply has become a key focus since Russia’s invasion of Ukraine drove costs sharply higher. Planned additions to nuclear electricity generation capacity will reduce Britain’s reliance on natural gas, which fuelled around 45% of generation in 2021.
G7 leaders agreed in June to take collective action to reduce reliance on civil nuclear and related goods from Russia, including diversifying their supplies of uranium and nuclear fuel production capability. Russia owns about 20% of global uranium conversion capacity and 40% of enrichment capacity.
Tom Greatrex, the chief executive of the London-based Nuclear Industry Association, said: “Having the sovereign capability to manufacture next-generation nuclear fuels for advanced reactors of the future is vital for energy security and net zero.”
The news comes just over a month after ministers confirmed the first state backing of a nuclear project in over 30 years, with a £700m stake in plans for two EPR nuclear plants at Sizewell C in Suffolk, eastern England.
The government said its “nuclear acceleration” requires pushing ahead to deliver new reactors, including advanced modular reactors, which will need new fuel streams.
