Urenco USA enriched uranium storage capsules.
Adam Jeffery | CNBC
The Department of Energy announced Wednesday an initiative aimed at building out the nation’s nuclear fuel supply chain as interest in the emissions-free power source grows.
The DOE is asking states to express interest in hosting “Nuclear Lifecycle Innovation Campuses,” which would support activities across the nuclear fuel lifecycle – including recycling used fuel.
Only about 5% of the value of the energy is used by a reactor, meaning the used fuel has the potential to be recycled. At present there is no commercial-scale uranium recycling in the U.S. The DOE said this would also redirect spent uranium from ultimately being sent to Yucca Mountain.
Ultimately, one of the proposed campuses could house the entire fuel cycle from enrichment all the way to recycling. The sites could also potentially have advanced reactors, power generation and co-located data centers, since it’s easier to do everything under one roof rather than having to transport fuel.
Given the surge in interest for nuclear power – driven in part by the enormous power needs of hyperscalers – the department said one of these campuses could attract $50 billion in capital investment from the private sector.
“Unleashing the next American nuclear renaissance will drive innovation, fuel economic growth, and create good-paying American jobs while delivering the affordable, reliable and secure energy America needs to power its future,” said U.S. Energy Secretary Chris Wright. He added it will be an “opportunity to work directly with states on regional priorities that support President Trump’s vision to revitalize America’s nuclear base.”
Nuclear accounts for about 21% of U.S. power, but the country is dependent on imports for much of its uranium.
Earlier this year, the DOE announced $2.7 billion in funding aimed at boosting the country’s enrichment facilities, including $900 million that was awarded to Centrus to expand production at its Piketon, Ohio, plant. The facility hasn’t yet reached commercial scale.
The Trump administration has made nuclear power a cornerstone of its national energy policy. President Donald Trump signed a series of executive orders last May that aim to speed the deployment of nuclear reactors, big and small, by cutting regulations.
The administration inked a deal last fall with Westinghouse owners Cameco and Brookfield Asset Management to spend $80 billion building its large nuclear reactor design across the U.S. The DOE has several initiatives to speed the deployment of small, advanced reactors.
Wright said in November that most of the department’s loan money will go toward building nuclear plants.
“When we leave office three years and three months from now, I want to see hopefully dozens of nuclear plants under construction,” Wright said at the time.
