BWXT to transform scrap uranium into clean energy fuel, boosting US grid decarbonization

In a move aimed at accelerating the decarbonization of the U.S. power grid, BWX Technologies, Inc. (NYSE: BWXT) has secured a contract to process thousands of kilograms of government-owned enriched uranium scrap material. The material, currently unusable, will be converted into over two metric tons of High Assay Low Enriched Uranium (HALEU), a valuable feedstock for fueling advanced nuclear reactors. The contract, initially valued at $47 million, could reach up to $116.5 million, pending annual congressional approvals.

Unique Facilities in Lynchburg, Virginia to Support Decarbonization Efforts

The critical project will be spearheaded by BWXT Nuclear Operations Group, Inc. at their specialized facilities located near Lynchburg, Virginia. The HALEU produced will play a pivotal role in advanced reactor demonstration projects. These reactors are fundamental to clean energy programs, aimed at significantly reducing greenhouse gas emissions and transitioning the U.S. to a more sustainable energy future.

DOE/NNSA Partnership Enhances National Security and Clean Energy

Jeff Chamberlin, Assistant Deputy Administrator for DOE/NNSA’s Office of Material Management and Minimization, lauded the partnership, stating, “The project will clear over two metric tons of scrap material from the Y-12 National Security Complex.” This contributes to the ongoing effort to minimize material accountability and inventory at the Y-12 site while supporting the U.S. Department of Energy’s advanced reactor initiatives.

BWXT Expands HALEU Production for Next-Gen Nuclear Reactors

Sharon Smoot, President of BWXT Nuclear Operations Group, Inc., emphasized the value of collaborating with the National Nuclear Security Administration (NNSA) and the U.S. Department of Energy. “Interest in, and demand for, advanced reactors continues to grow for both national security and clean energy applications,” she said. The contract strengthens BWXT’s HALEU production capabilities, bolstering the supply chain for next-generation nuclear reactors.

Project Milestones and Job Creation at Lynchburg Facility

Over the next five years, BWXT will produce over two metric tons of HALEU, with several hundred kilograms expected to be available by 2024. To support this ambitious program, approximately 20 new positions for operators, engineers, and safety personnel will be created at the Lynchburg-area facility.

Final Product Specifications and Source Material

The HALEU produced will be in an oxide form with an enrichment level of 19.75%. The government-provided scrap material comes in various forms and enrichment levels and has primarily been collected from the Y-12 National Security Complex.

In summary, the BWXT contract stands as a milestone in U.S. clean energy efforts, turning scrap material into valuable feedstock for advanced reactors that could play a crucial role in decarbonizing the U.S. power grid.