HALEU Bottleneck: The Hidden Challenge Delaying the Next Generation of Nuclear Reactors

One of the main topics was the timeline for SMRs, etc., and I still stand by my belief that most timelines we see now on the media will be delayed. My reasoning is fuel (and, to a lesser extent, NRC).

High-Assay Low-Enriched Uranium (HALEU) availability bottleneck is one of the most significant challenges in deploying next-generation nuclear reactors. HALEU, enriched to contain 5-20% uranium-235, is essential for advanced reactors like SMRs, molten salt reactors, and those using TRISO fuel.

The DoE has projected that by the end of the decade, the country will require around 40 metric tons of HALEU annually to meet the needs of advanced nuclear reactors. However, the U.S. still needs to achieve this production target. One of the few companies authorized to produce HALEU in the U.S., Centrus Energy, has ramped up production but faces several logistical hurdles.

In 2023, Centrus Energy made its first batch of HALEU, but it has acknowledged that it will fall short of its 2024 target of 900 kilograms due to issues such as the availability of storage cylinders. Even if Centrus Energy manages to increase production to 6 metric tons annually, this still needs to catch up to the projected demand.

Compounding the issue, much of the world’s current HALEU supply has historically come from Russia, a country that can no longer be relied upon due to geopolitical tensions and sanctions. The U.S. also faces competition from other countries pursuing advanced nuclear technologies and requiring HALEU for their reactors. Nations like Canada, the U.K., and Japan are exploring next-generation reactors, which adds pressure on the global HALEU supply.

Beyond the U.S., efforts to establish HALEU production are underway in Europe. The UK, for instance, has committed ￡300 million to launch a domestic HALEU enrichment program. A new facility in Capenhurst is set to produce 10 tons of HALEU annually by 2031, making the UK the first country in Europe to actively pursue HALEU production outside of Russia. In France, Orano is expanding its Georges Besse II enrichment facility to include HALEU, marking another significant step toward establishing a European HALEU supply chain.

The HALEU bottleneck is a critical obstacle to the U.S. achieving its advanced nuclear energy goals. While the DoE's recent investment in HALEU fuel deconversion is a positive step, Centrus Energy's production shortfalls and the loss of Russian supply create significant challenges.

Before the widespread deployment of next-generation nuclear technologies can be completed, the U.S. must build a reliable domestic HALEU supply chain and streamline the regulatory approval process for advanced reactors.

PS - Obtaining NRC approval for a newly designed reactor is a complex, multi-stage process that goes far beyond just finalizing the reactor’s design. First, test data is required, which means you must build a research reactor to generate this data. This requires a significant amount of fuel—specifically HALEU in the case of advanced reactors. Running the research reactor for several years to gather the necessary data is essential before submitting it to the NRC for approval.

Once the research reactor has provided the required data and the NRC approves the design, you’ll need more fuel to build the first production reactor. Delays can arise at every step: acquiring fuel for the research reactor, the time it takes to run and gather data, regulatory bottlenecks in the approval process, and then the challenge of securing sufficient fuel for full-scale production. It's not a simple "design-complete, fuel-ready, production-starts" scenario. The entire process can take years, with fuel availability being one of the biggest limiting factors at every stage.