A £50m nuclear fuel fund to bolster production in the UK and support development of alternatives to Russian supply opens for applications on Monday, the business department has announced.
The fund forms part of a nuclear fuel investment package of up to £75m, of which up to £13m has already been awarded to the nuclear fuel fabricators Westinghouse in Preston, helping the company develop conversion capability for reprocessed uranium and freshly mined uranium.
Uranium conversion is an important stage in the nuclear fuel cycle. The funding is designed to create capability to convert recycled uranium in the UK that is not currently available outside Russia. As well as strengthening UK energy security, ministers hope it will also open up new export opportunities.
G7 leaders agreed in June to take collective action to reduce reliance on civil nuclear and related goods from Russia, including diversifying their supplies of uranium and nuclear fuel production capability. Russia owns about 20% of global uranium conversion capacity and 40% of enrichment capacity.
Graham Stuart, the energy and climate minister, said: “Record high global gas prices, caused by Putin’s illegal invasion of Ukraine, have highlighted the need for more homegrown 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.”
Tom Greatrex, the 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.”
The £50m fund will support projects such as fuel supply options for light water reactors, including future small modular reactors. It will also look to support projects producing new fuel types that will be needed to supply advanced modular reactors, likely to be in operation from the 2030s, such as high-assay low-enriched uranium.
The news comes after the government confirmed in late November that the Sizewell C nuclear power plant in Suffolk will go ahead, backing the scheme with an investment of nearly £700m that will end China’s controversial involvement.
