Nuclear fuel production in the UK is set to be bolstered by up to
£75 million in UK government funding in a bid to support
development of alternatives to Russian fuel supply and strengthen
UK energy security, the Energy and Climate Minister has announced today (2
January).
This will encourage investment in new and robust fuel production
capabilities in the UK, backing the government’s ambition to
secure up to 24GW of nuclear power by 2050.
G7 leaders agreed in June to begin concerted action to reduce
reliance on civil nuclear and related goods from Russia,
including working to diversify their supplies of uranium and
nuclear fuel production capability. Russia currently owns around
20% of global uranium conversion capacity and 40% of enrichment
capacity.
The UK’s £75 million Nuclear Fuel Fund will strengthen energy
security by encouraging investment into the development and
commercialisation of domestic nuclear fuel production including
advanced fuel technologies.
This includes the development of new conversion capacity in the
UK for both freshly mined and reprocessed uranium. These will
help power existing as well as future advanced nuclear reactors -
and support international diversification from Russian fuel
supply.
Minister of State for Energy and Climate , said:
Record high global gas prices, caused by Putin’s illegal invasion
of Ukraine, have highlighted the need for more home-grown
renewable energy, but also UK generated nuclear power – building
more plants, and developing domestic fuel capability.
This investment package will strengthen the UK’s energy security,
by ensuring access to a safe and secure supply of UK produced
fuel to power the UK nuclear fleet of today and tomorrow -
squeezing out Russian influence, while creating more UK jobs and
export opportunities.
Up to £13 million of the fund has already been awarded in
Preston, which has strategic importance to fabricating fuel for
the current UK advanced gas cooled reactor fleet. The funding
will help the company develop primary conversion capability for
both reprocessed uranium and freshly mined uranium.
The support will provide for significant investment at the
Springfields site in Lancashire, safeguarding hundreds of highly
skilled jobs in the North West.
Uranium conversion is an important stage in the nuclear fuel
cycle. The funding will create expert nuclear fuel capability to
convert recycled uranium in the UK that is not currently
available outside Russia. As well as bolstering UK energy
security, ministers hope it will also deliver export
opportunities for the sector and position the UK as a key
international supplier of nuclear fuel and fuel cycle services.
The government aims for the remaining £50 million fund, which
opens for bids today, to stimulate a diverse and resilient
nuclear fuel market, supporting specialist skills, levelling up
opportunities through new job creation across the country and
opening up new export opportunities.
It will support projects establishing new domestic fuel
capabilities, which could include fuel supply options for Light
Water Reactors, including future Small Modular Reactors, that
could support much of our current nuclear energy needs. It will
also look to support projects producing new fuel types which will
be needed to supply Advanced Modular Reactors, likely to be in
operation from the 2030s, such as High Assay Low Enriched
Uranium.
Chief Executive of the Nuclear Industry Association , said:
Having the sovereign capability to manufacture next generation
nuclear fuels for advanced reactors of the future is vital for
energy security and net zero.
It will also open up export opportunities for the UK, helping us
reclaim our place as world leaders in the fuels sector.
The news comes just over a month after ministers announced the
further revitalisation of the UK nuclear industry, by confirming
the first state backing of a nuclear project in over 30 years,
with an historic £700 million stake in Sizewell C in Suffolk. The
power station will produce enough electricity to power the
equivalent of 6 million homes for over 50 years. The nuclear
acceleration requires pushing ahead to deliver new reactors,
including advanced modular reactors, which will need new fuel
streams.
Notes to editors
The Nuclear Fuel Fund will invest up to £75 million fund to
preserve the UK front-end nuclear fuel cycle capability, to
support our ambition to increase civil nuclear deployment to up
to 24GW by 2050.
The fund will close to applications on 20 February:
see details of how to
apply
More information about Russia’s
influence in the international nuclear fuels market.
