At the outset of the atomic era, the United States took charge of its own uranium production, becoming a global leader in nuclear power. However, as the popularity of fission declined in the 1980s, the country began to rely more on imported fuel for its reactors. The collapse of the domestic industry occurred when the US struck a deal with Russia in the 1990s to purchase uranium from dismantled Soviet bombs. Now, in the wake of the Ukrainian conflict and the need to reduce dependence on Russian oil and gas, the US and its allies are striving to revive their nuclear sectors to replace fossil fuels and combat climate change. Enter a new wave of innovative nuclear startups that aim to bring never-before-seen reactor designs to the market. Lawmakers from both parties in Congress are ready to support these efforts. However, these companies face a significant obstacle—the concentrated form of uranium fuel they require is only sold by a single vendor, which happens to be a Russian government entity. The US is, however, making progress in breaking the monopoly. Centrus Energy, located in Ohio, recently announced an agreement to supply California-based startup Oklo Inc. with high-assay low-enriched uranium (HALEU). This advanced fuel alternative is enriched to a higher level, allowing for increased splitting of uranium atoms and enhancing reactor performance. The traditional reactors in the US fleet cannot run on HALEU, but the new and sleek reactor technologies developed by companies like Oklo, TerraPower (backed by Bill Gates), and X-energy are designed to do so. The US currently only produces 5% of its traditional reactor fuel, and increasing domestic production has proven challenging, especially for fuel that does not yet have a customer base. To compound the issue, the energy-intensive gaseous diffusion technology used for uranium enrichment has fallen out of favor, while the US has failed to invest in alternative methods. Centrus, however, is slowly changing this narrative. Although it has only been able to build a pilot facility in Piketon, Ohio, the company is optimistic about expanding its capacity when demand aligns. Democrat lawmakers have allocated approximately $700 million from President Joe Biden’s Inflation Reduction Act climate law to support domestic HALEU production. Centrus estimates that fulfilling this supply would require 3 1/2 years and additional investments to establish enough centrifuges for the production of 6 metric tons of HALEU annually. Centrus has not disclosed the exact amount required, but it is expected to be several billion dollars. Congress has shown willingness to address the issue, with bipartisan bills advocating for funding domestic fuel enrichment. In the meantime, Centrus has secured agreements to sell HALEU to companies like TerraPower and Oklo. The latter partnership involves Oklo purchasing electricity from an Oklo plant in Piketon for Centrus’ enrichment facility, as well as collaborating on the manufacturing of power station components. Oklo’s CEO sees these developments as a pivotal moment for nuclear energy in the US and a sign of increased private sector interest. However, the ultimate success of these endeavors hinges on the amount of government funding allocated. Centrus envisions a public-private partnership that includes federal investment, private investment, and commercial agreements to level the playing field dominated by state-owned foreign corporations.
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