Since the tragic Russian invasion of Ukraine began, the United States has been rethinking how and if we do business with Russia. This is true in the power sector as well, and the nuclear energy industry has been examining its fuel supply chain, looking at all options that will allow us to transition away from any dependency on Russia.
Right now, the United States receives about 20 percent of its enriched uranium from Russia, and the nuclear energy industry is committed to ending imports of Russian uranium services. To do so, however, the private sector and government must work together to ensure the establishment of a secure, reliable fuel supply chain.
Nuclear energy is our largest source of carbon-free energy and a critical part of how we will reach our climate goals. Fuel is needed to keep our existing reactors running because they supply clean, affordable, reliable energy to communities across the United States.
Manufacturing nuclear fuel is a four-step process: mining, conversion, enrichment and fabrication. Uranium mining occurs in many countries, and Russian uranium is usually not sold directly to U.S. operators. Adequate uranium supply is available from friendly nations including Canada, Australia, and the United States itself.
However, uranium must be processed before it can be used as fuel, and there are limited conversion and enrichment services in the market. Russia is a significant supplier of these services.
The last step in fueling U.S. reactors, fuel fabrication, is 100 percent American.
A secure, reliable fuel supply is needed now more than ever, and it will not happen overnight. It will take commitment from politicians, companies, federal agencies, and state and local governments. And it will require a large investment in our clean energy future.
Ramping down Russian imports over the next few years while Western capacities are increased will ensure there are no supply disruptions which could result in losing thousands of jobs, millions of megawatt-hours of carbon-free electricity generation and billions of dollars in GDP.
If we establish a sufficient domestic fuel supply, then our most reliable source of energy will be more secure. We will have control of the process from start to finish, and building these capabilities will create jobs at uranium conversion and enrichment sites across the country.
It will also ensure the United States’ ability to fuel advanced reactors, the first of which will be deployed this decade. Some of these reactors will need High-Assay Low-Enriched Uranium (HALEU), which is today produced only in Russia. This jeopardizes one of our key tools in fighting climate change—advanced nuclear—unless we act now.
We can invest in our future energy security and clean energy grid by preparing our enrichment facilities at home to produce HALEU alongside traditional fuels like Low-Enriched Uranium (LEU).
In the meantime, nuclear plant operators are exploring opportunities to share available fuel inventories and draw from additional sources of commercial fuel. The U.S. government can help mitigate the negative impacts of any supply disruption by making nuclear fuel from the nation’s stockpile available to operators who are unable to obtain fuel from the market.
The government can also incentivize future investment in both LEU and HALEU fuel cycle infrastructure through long-term contracts and by encouraging contracts from the private sector through a tax credit for operators who purchase domestic nuclear fuel.
Nuclear energy is an essential part of our current energy grid in terms of both our climate goals and keeping the lights on, and the next generation of reactors will be critical to decarbonization. To secure our clean energy future, we need to commit to a domestic fuel supply.
