£196 million investment announced for North-west nuclear industry

The North-west of England is to become the first region in Europe outside Russia with the capability to produce advanced nuclear fuel following a £196 million government investment in nuclear energy firm, Urenco.

Urenco have been awarded the funding to build a uranium enrichment facility at Capenhurst at the southern end of the Wirral peninsula in Cheshire that will produce advanced nuclear fuel to power future nuclear reactors and boost zero-carbon electricity generation in the UK and overseas. The facility will produce fuel by 2031 that would be ready to export or use domestically, and could power UK homes in the next decade. It will put an end to Russia’s reign as the only commercial producer of high-assay low enriched uranium (HALEU) and ensure other countries are not reliant on Russian exports.

The new facility will support around 400 highly-skilled jobs, helping to boost the local supply chain and grow the economy. Urenco’s £196 million funding award is part of government plans to invest £763 million in skills, jobs and education to grow the UK’s nuclear industry.

Prime Minister, Rishi Sunak, said:

“Building our own uranium enrichment plant is essential if we want to prise Putin’s blood-soaked hands off Europe’s energy market.

“Russia has been the sole provider of this powerful nuclear fuel for too long and this marks the latest step in pushing him out of the energy market entirely.

“The wider future of British nuclear remains a critical national endeavour – guaranteeing nuclear and energy security, and reducing energy bills for Brits.“

Secretary of State for Energy Security and Net Zero,?Claire Coutinho, said:

“Backing Urenco to build a uranium enrichment plant here in the UK will mean we are the first European nation outside Russia to produce advanced nuclear fuel.

“This will support hundreds of new jobs, bring investment for the people in Cheshire and is a huge win for energy security at home and abroad.”

HALEU is needed to power most advanced modular reactors which are crucial to meeting the UK’s ambition to quadruple nuclear capacity by 2050 – the biggest expansion in 70 years. Like small modular reactors, they can be made in factories and transform how power stations are built by making construction faster and less expensive.

These advanced reactors are more efficient and use novel fuels, coolants, and technologies to generate low-carbon electricity. Their high heat output means they can also be used to decarbonise industry, produce hydrogen for transport or heat for homes.

Boris Schucht, CEO of Urenco, said:

“The responsibility the nuclear industry has to help governments and customers to achieve climate change and energy security goals is clear.

“We welcome this government investment, which will help accelerate the development of a civil HALEU commercial market and in turn the development of the next generation of nuclear power plants. These plants will have even higher safety standards and lend themselves to quicker licensing and construction processes.

“Urenco has the knowledge and experience to play a leading role in the production of HALEU and other advanced fuels, operating securely under inter-governmental treaties to ensure the peaceful use and safeguarding of nuclear technology.“