UK Government Launches Competition for HALEU Deconversion Facility with £70 Million Funding

UK Government Launches Competition for HALEU Deconversion Facility with £70 Million Funding

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Uranium Industry Update – October 2023

UK Government’s HALEU Deconversion Facility Competition

Date: October 1, 2023

The UK government has officially launched a competition offering up to GBP70 million (USD90 million) to foster the development of a commercial High-Assay Low-Enriched Uranium (HALEU) deconversion facility. This initiative aims to bolster the UK’s uranium industry and support advancements in nuclear technology, particularly the development of next-generation reactors, which require HALEU enriched to between 5% and 20% uranium-235.

This initiative is part of the larger GBP300 million UK HALEU Programme, which aspires to establish a robust HALEU production capability in the UK by 2031. Currently, only Russia and China possess the infrastructure to produce HALEU at a commercial scale, highlighting the importance of this UK initiative in enhancing national capabilities.

Funding and Facility Requirements

The government previously allocated GBP196 million to Urenco in May to develop an HALEU enrichment capability aimed for initial operations by 2031. The current grant is intended not just for the design but also to support the construction of both an oxide and a metal deconversion facility capable of processing substantial amounts of uranium. Specifically, the oxide facility must have an initial capacity to process at least 10,000 kgU annually, with prospects for future expansion to a minimum of 30,000 kgU.

The deadline for expressions of interest is set for September 5, 2024, with applications accepted until September 9, 2024. The funding period for this grant spans fiscal years from 2025-26 to 2029-30, marking a significant step forward in the UK’s efforts to secure a competitive position in the global uranium market.



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