TerraPower, ASP working on HALEU supply agreement

Wednesday, 30 October 2024

The term sheet contemplates the preparation of definitive agreements pursuant to which TerraPower would provide funding for the construction of a high-assay low-enriched uranium (HALEU) production facility. In addition, the parties anticipate entering into a long-term supply agreement for the HALEU expected to be produced at this facility pursuant to which the customer would purchase all the HALEU produced at the facility over a 10-year period after the expected completion of the facility. 

It is anticipated that the definitive agreements will be assigned to ASP Isotopes' wholly-owned subsidiary, Quantum Leap Energy LLC. The term sheet contains non-binding and binding provisions, including a period of exclusivity during which ASP Isotopes will not negotiate with third parties for the supply of HALEU or work on another ASP technology-based uranium enrichment facility.

ASP Isotopes said it is in discussions with certain financial institutions to provide additional capital for the HALEU production facility. The company said it believes that its enrichment technologies can be deployed in a new HALEU facility for considerably lower capital costs, and in much less time, compared with the construction of an enrichment facility using a traditional centrifuge process of HALEU production. ASP has already constructed or is in the process of constructing three isotope enrichment facilities in South Africa.

"Over the last several decades, the scientists at ASP Isotopes have developed some of the world's most advanced isotope enrichment technologies," said ASP Isotopes Chairman and CEO Paul Mann. "This term sheet is further validation of our belief that ASP Isotopes can offer scalable and capital efficient technology solutions to the supply challenges which exist in global isotope markets."

TerraPower said its agreement with ASP "is one of many investments TerraPower has made to secure access to the fuel for the Natrium reactor and energy storage system being developed in Kemmerer, Wyoming".

The company has also made multiple strategic agreements and investments to help spur domestic production capabilities in the USA and ensure a robust and competitive front end of the nuclear fuel cycle. These include MoUs and agreements with Centrus for HALEU commercialisation, Framatome to develop a HALEU metallisation plant and Uranium Energy Corporation to explore the use of Wyoming uranium as a potential fuel source for Natrium plants.

Once enriched, Natrium's fuel will be fabricated at the Natrium Fuel Facility in Wilmington, North Carolina, which is under development at the Global Nuclear Fuel–Americas site through a significant investment by TerraPower and the US Department of Energy (DOE). TerraPower also remains an active member and participant of DOE's HALEU Consortium.

"TerraPower has been working diligently to ensure a stable, secure HALEU supply chain for our Natrium reactors," said TerraPower President and CEO Chris Levesque. "This agreement is another example of our commitment and investments to commercialise HALEU production domestically and in allied countries. We are optimistic about ASP Isotopes enrichment capabilities and planned timeline to help ensure advanced nuclear energy can achieve its necessary role in meeting climate energy targets."

TerraPower broke ground for the first-of-a-kind advanced reactor plant at Kemmerer in Wyoming in June this year. The 345 MWe sodium-cooled fast reactor with a molten salt-based energy storage system - which can boost the system's output to 500 MW of power when needed, allowing it to integrate seamlessly with renewable resources - is being built near a retiring coal-fired plant.