• Domestic HALEU Production: The Biden-Harris Administration, through the Department of Energy, announced contracts for the domestic production of high-assay low-enriched uranium (HALEU), essential for advanced nuclear reactors, aimed at improving efficiency and reducing radioactive waste.
• Funding and Goals: Funded by the Inflation Reduction Act, the initiative seeks to establish a reliable domestic HALEU supply chain to reduce foreign dependency and support the transition to a net-zero emissions economy by 2050, targeting a 40% reduction in carbon emissions by 2030.
• Contract Awards: Four companies—Louisiana Energy Services, Orano Federal Services, General Matter, and American Centrifuge Operating—have been selected for contracts totaling up to $2.7 billion, supporting the development of advanced nuclear technologies like TerraPower’s “Natrium” and X-Energy’s “Xe-100.”

The Biden-Harris Administration and the Department of Energy (DOE) announced on Thursday, October 17, 2024, new plans for domestic high-assay low-enriched uranium (HALEU) production and supply in the form of four contracts. HALEU is a type of nuclear reactor fuel enriched to a higher degree than traditional reactor fuel. HALEU typically contains a concentration of 5-20% of U-235, compared to the 3-5% of U-235 found in conventional reactor fuels. 

HALEU is essential for advanced nuclear reactors. Because of its higher concentration of U-235–the primary form of uranium used in nuclear power plants, HALEU allows for improved reactor performance as per smaller reactors and longer operating cycles, eliminating the need for constant refueling and increasing the efficiency of the reactor. Besides improved reactor performance, HALEU also produces less radioactive waste. With multiple benefits, HALEU is an attractive and in-demand reactor fuel. 

Funded by the Inflation Reduction Act, the Biden-Harris Administration seeks to establish a robust and more reliable domestic supply chain of HALEU, free from adversarial foreign influence. The Inflation Reduction Act of 2022 is a federal law supporting investments in domestic energy production and manufacturing, while simultaneously promoting clean energy alternatives. This act seeks to reduce carbon emissions by ~40% by 2030, with a desire to transition into a net-zero emissions economy by 2050. A net-zero emissions economy balances greenhouse gas emissions completely with removal through natural processes, such as carbon absorption by ecosystems. 

To achieve this goal, transitioning to nuclear energy is crucial. As mentioned by the U.S. Secretary of Energy, Jennifer M. Granholm states, “Today’s announcement represents the Biden-Harris Administration’s latest efforts to build a secure domestic HALEU supply chain, which is essential to bringing advanced nuclear reactors online and meeting the growing demand for clean, reliable electricity.” Granholm emphasized prizing HALEU in advancing nuclear energy, which is a significant source of carbon-free electricity. 

The Department of Energy has selected Louisiana Energy Services, Orano Federal Services, General Matter, and American Centrifuge Operating as the domestic companies for this contract. The government will award each company a minimum of $2 million and the contracts will last for 10 years, with a total funding pool of up to $2.7 billion. Advanced nuclear reactors like TerraPower’s “Natrium” and X-Energy’s “Xe-100” will use the HALEU produced from these contracts, further reinforcing the nation’s shift to clean nuclear energy.