Key Points:
- KHNP signs a Letter of Intent (LOI) with Centrus Energy for a stable supply of enriched uranium.
- The collaboration aims to diversify the supply of enriched uranium, a critical component in nuclear fuel.
- Centrus Energy is the only American company licensed to produce high-assay, low-enriched uranium (HALEU).
- KHNP sees the collaboration as a strategic move to strengthen nuclear cooperation between South Korea and the United States.
Korea Hydro & Nuclear Power (KHNP) has taken a significant step to ensure a stable supply of enriched uranium by signing a Letter of Intent (LOI) with Centrus Energy, a U.S.-based nuclear fuel and services provider. The non-binding agreement was formalized in Washington on Monday local time, following the Memorandum of Understanding (MOU) signed by the two entities in April last year.
The LOI outlines concrete business objectives to enhance uranium resource security and foster nuclear cooperation between KHNP and Centrus Energy. The collaboration aims to diversify the supply of enriched uranium, a crucial component in nuclear fuel.
KHNP expressed its intent to strengthen nuclear cooperation between South Korea and the United States by strategically engaging with Centrus, which is actively working to re-establish robust uranium enrichment capacity in the U.S.
According to Whang Joo-ho, CEO of KHNP, the signing of the LOI sets the stage for substantive discussions on stable nuclear fuel supply, and both parties plan to explore additional business opportunities in the nuclear sector by expanding the future nuclear fuel supply chain.
Centrus Energy is uniquely positioned as the sole American company to have secured a production license from the U.S. Nuclear Regulatory Commission for high-assay, low-enriched uranium (HALEU). HALEU is utilized as fuel for advanced reactors and small modular reactors.
In November, Centrus successfully initiated the production of 20 kilograms of HALEU at its facility in Piketon, Ohio. This accomplishment underscored the company’s technological prowess and production capabilities, earning recognition from the U.S. Department of Energy.
The collaboration between KHNP and Centrus ensures a stable supply of enriched uranium for existing commercial reactors and opens avenues for securing fuel for future reactors. KHNP envisions this partnership as a strategic move to fortify nuclear cooperation, laying the groundwork for a secure and diversified supply chain in the nuclear fuel domain.
