The UK government has initiated a competition offering funding of up to GBP 70 million (USD 90 million) to incentivize the development of a commercial facility within the country capable of deconverting High-Assay Low-Enriched Uranium (HALEU).
HALEU’s Significance for Advanced Nuclear Reactors
HALEU, uranium enriched to between 5% and 20% uranium-235, is a crucial component of the advanced nuclear fuel required for most next-generation reactor designs currently under development.
As of now, only Russia and China possess the infrastructure to produce HALEU at a large scale.
HALEU Deconversion Competition as Part of Broader Program
This competition is an integral part of the GBP 300 million UK HALEU Programme, launched in January with the objective of establishing a domestic HALEU capability by 2031.
The UK Department for Energy Security and Net Zero (DESNZ) emphasizes that this investment will support domestic HALEU production and contribute to the goal of delivering up to 24 GWe of nuclear power by 2050, meeting approximately 25% of the UK’s electricity needs.
First Tranche of Funding Awarded to Urenco
In May, the government announced the initial allocation of funding, awarding GBP 196 million to Urenco to develop a first-of-its-kind commercial-scale HALEU enrichment capability, with operations expected to commence in 2031.
Specific Requirements for the Deconversion Facility
The grant offered in the competition aims to support the design and construction of a commercial-scale oxide HALEU deconversion facility, as well as the design of a commercial-scale metal HALEU deconversion facility.
The oxide HALEU deconversion facility is expected to be operational in the UK by 2031, with an initial capacity of at least 10,000 kgU per year and a design allowing for future expansion to at least 30,000 kgU per year. The facility should also accommodate the potential integration of a metal deconversion line if market demand grows.
Additionally, applicants must submit a proposal for the detailed design of a commercial-scale metal HALEU deconversion facility with a minimum capacity of 5,000 kgU per year.
Collaboration Across the HALEU Supply Chain
DESNZ encourages the successful applicant to collaborate with other HALEU delivery partners and across the broader HALEU supply chain. This may involve collaboration with the Nuclear National Laboratory (NNL), which is being considered for funding under the HALEU Programme.
If funded, the NNL would use the grant to enhance UK skills and capabilities in oxide and metal deconversion through a dedicated test rig and associated R&D program, potentially supporting the successful applicant.
Timeline and Funding Details
The deadline for expressions of interest is September 5th, with applications accepted until September 9th. The funding period for this grant will span from FY25-26 to FY29-30. Industry co-funding is mandatory, with a minimum ratio of 70:30 (government: industry).
DESNZ anticipates that this project will bolster the growth of the front-end HALEU supply chain in the UK while revitalizing essential skills within the nuclear industry.