Higher-enriched uranium for datacenters has DoE all aglow

The US Department of Energy (DoE) has chosen Utah-based startup Nusano to participate in a program aimed at increasing the supply of high-assay, low-enriched uranium (HALEU) fuel for next-generation nuclear reactors. HALEU is essential for advanced designs like small modular reactors (SMRs) and molten salt reactors, which require fuel enriched between 5 and 20 weight percent of U-235, the primary fissile isotope used in nuclear reactors.

Traditional reactors use low-enriched uranium with under five percent enrichment. The new HALEU production method developed by Nusano is reportedly more efficient and environmentally friendly compared to gas centrifuge enrichment techniques, which use gaseous uranium hexafluoride and generate toxic byproducts. While Nusano's production capacity won't be realized until around 2031, the company expects each unit to generate 5.9 metric tons of HALEU annually.

However, the company's HALEU production plan has been "outdated" since at least June 2025, and Nusano did not confirm if it had built a functional demonstration unit or produced any HALEU. The demand for HALEU in the US is projected to reach 50 metric tons per year by 2035, but Nusano's first unit won't be operational until then.

Although several US companies are expected to join the HALEU production effort, the timeline remains uncertain as commercial-scale production remains many years away. Meanwhile, the EPA has recently revoked emissions regulations for coal and gas power plants, which may lead to increased reliance on fossil fuels despite the push for cleaner energy sources like nuclear power.