UK invests £200 million in nuclear plant to reduce Russian fuel reliance

The UK government is putting nearly £200 million ($251.1 million) into building Europe's first plant dedicated to high-assay low-enriched uranium (HALEU), Reuters reported on May 8. This investment aims to meet climate goals and bolster energy security. The goal is to boost nuclear power capacity to 24 gigawatts by 2050—about a quarter of the UK's projected electricity needs, up from around 14% today.

London plans to construct new, modern reactors that need HALEU fuel, potentially opening up export opportunities for allies looking to lessen their reliance on Russian nuclear fuel. Right now, many companies developing advanced reactors rely heavily on HALEU, primarily supplied by TENEX, a subsidiary of the Russian company Rosatom.

The British government has already awarded uranium enrichment firm Urenco £196 million ($244.6 million) to build a facility in Cheshire, which will create around 400 jobs. Set to start operations in 2031, the plant will produce fuel for both domestic and export markets.

HALEU is the essential fuel for next-gen nuclear power projects.

In March 2023, Ukraine’s Energy Minister German Halushchenko confirmed that Ukrainian nuclear power plants would fully switch to using fuel from U.S.-based Westinghouse by the end of this year. He also stated that Ukraine would start producing its own nuclear fuel within three years to serve its domestic needs and European markets.

On May 8, 2024, the UK pledged €23 million ($24.7 million) to help Ukraine restore its energy system. This funding will support the purchase of equipment to rebuild damaged infrastructure, improve physical security, and provide backup power through generators and distributed energy sources.