Government sets plan to boost UK nuclear fuel capacity and reduce Russian influence

Energy and Climate Minister Graham Stuart announced earlier this week that nuclear fuel production in the UK is set to be bolstered by up to £75 million in government funding in a bid to support development of alternatives to Russian fuel supply.

It is hoped this will encourage investment in new fuel production capabilities in the UK, backing the government’s ambition to secure up to 24GW of nuclear power by 2050.

Mr Stuart said: “Record high global gas prices, caused by Putin’s illegal invasion of Ukraine, have highlighted the need for more home-grown renewable energy, but also UK generated nuclear power – building more plants, and developing domestic fuel capability.

“This investment package will strengthen the UK’s energy security, by ensuring access to a safe and secure supply of UK produced fuel to power the UK nuclear fleet of today and tomorrow - squeezing out Russian influence.”

G7 leaders agreed in June to begin concerted action to reduce reliance on civil nuclear and related goods from Russia, including working to diversify their supplies of uranium and nuclear fuel production capability.

Russia currently owns around 20 per cent of global uranium conversion capacity and 40 per cent of enrichment capacity.

The Nuclear Fuel Fund hopes to strengthen energy security by encouraging investment into the development and commercialisation of domestic nuclear fuel production including advanced fuel technologies.

Up to £13 million of the fund has already been awarded in Preston, which has strategic importance to fabricating fuel for the current UK advanced gas cooled reactor fleet.

The support will provide for significant investment at the Springfields site in Lancashire, safeguarding hundreds of highly skilled jobs in the North West.

The government aims for the remaining £50 million fund, which has opened for bids, to stimulate a diverse and resilient nuclear fuel market, supporting specialist skills, levelling up opportunities through new job creation across the country and opening up new export opportunities.