In a move aimed at bolstering energy security and reducing reliance on Russian dominance in the nuclear fuel market, the UK has announced a £196 million investment in building what it is says is Europe’s first high-tech nuclear fuel facility. 

The new facility, funded by the government and awarded to Urenco, a nuclear enrichment services provider, will produce high-assay low enriched uranium (HALEU) by 2031. This move is set to disrupt Russia’s monopoly on HALEU production, offering alternative sources for nuclear fuel to the global market.

“Russia has been the sole provider of this powerful nuclear fuel for too long and this marks the latest step in pushing him out of the energy market entirely,” said Prime Minister, Rishi Sunak.

HALEU is a critical component for advanced nuclear reactors, which are essential for meeting the UK’s target of quadrupling nuclear capacity by 2050. By investing in domestic HALEU production, the UK aims to enhance its energy independence and support the development of advanced modular reactors that offer efficient, low-carbon electricity generation.

Moreover, the investment in the nuclear fuel facility is expected to stimulate economic growth, with around 400 highly-skilled jobs to be created in Cheshire, where the facility will be located. 

“The responsibility the nuclear industry has to help governments and customers to achieve climate change and energy security goals is clear,” said Boris Schucht, CEO of Urenco.

“We welcome this government investment, which will help accelerate the development of a civil HALEU commercial market and in turn the development of the next generation of nuclear power plants.”

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This investment aligns with the government’s broader commitment to nurturing the UK’s nuclear industry, with over £763 million pledged towards skills development, job creation, and education.

In addition to the investment in nuclear fuel, the UK is moving ahead in fusion energy development after launching a competition for up to £600 million in contracts to build the world’s first commercially viable fusion power station prototype. 

“This is the biggest single investment in UK nuclear fuel production capability in decades, and it is especially welcome as it will accelerate the supply of the next generation of fuels that are vital for this new net zero nuclear era,” said Zara Hodgson, director of the Dalton Institute.

“Urenco Capenhurst’s HALEU Enrichment capability will help hugely to unlock the deliverability of advanced nuclear projects, opening the door to sustainable  electricity and heat for industries from nuclear, across the UK and overseas.”