The UK government has introduced a competition for up to £70 million ($90 million) in funding to develop a commercial high-assay low-enriched uranium (HALEU) deconversion facility. HALEU, which is uranium enriched to between 5% and 20% uranium-235, is essential for next-generation reactor designs currently in development. Currently, only Russia and China have the infrastructure to produce HALEU on a large scale.
This competition is part of the £300 million UK HALEU Programme, which aims to establish a HALEU capability in the UK by 2031. The UK Department for Energy Security and Net Zero (DESNZ) stated that this investment will bolster domestic HALEU production, contributing to the goal of generating up to 24 GWe of nuclear power by 2050, which is expected to meet about 25% of the UK’s electricity demand.
In May, the government allocated £196 million to Urenco to develop a pioneering HALEU enrichment capability, with operations planned to commence in 2031.
The current competition will fund the design and construction of both an oxide and a metal HALEU deconversion facility. The oxide facility is expected to be operational by 2031 with an initial capacity to process at least 10,000 kgU per year, expandable to 30,000 kgU per year. It should also be designed to accommodate a metal deconversion line if market demand increases. Applicants must also propose a detailed design for a commercial-scale metal HALEU deconversion facility with a minimum capacity of 5,000 kgU per year.
Successful applicants will be required to collaborate with HALEU delivery partners and the broader HALEU supply chain, including potential collaboration with the Nuclear National Laboratory (NNL). The NNL may receive funding under the HALEU Programme to develop UK skills and capabilities in HALEU deconversion through a test rig and R&D programme.
Expressions of interest are due by 5 September, with full applications accepted until 9 September. The funding period for the grant will span from FY25-26 to FY29-30, with a required industry co-funding ratio of 70:30 (government: industry).
