Companies join forces for possible US HALEU project

The non-binding Memorandum of Understanding (MoU) contemplates Quantum Leap Energy and Fermi America forming a joint venture for the research and development, and then the construction, of an advanced nuclear fuel enrichment facility capable of producing" large quantities" of high-assay-low enriched uranium (HALEU) - uranium containing 5-20% of the fissile uranium-235 isotope - for small modular reactors. The facility is anticipated to provide for the conversion and deconversion of uranium products, as well as the fabrication of fuel assemblies, ASP Isotopes (ASPI) said. Fermi America is expected to be responsible for obtaining all licences, permits, governmental and regulatory approvals, and other required consents for the HALEU joint venture project.

In addition, the MoU contemplates ASPI entering into a separate lease for the development and construction of a 100% ASPI-owned enrichment research and commercial production facility for stable isotopes and advanced materials other than advanced nuclear fuels.

ASP Isotopes traces its origins back to the South African uranium enrichment programme of the 1980s, and uses two proprietary isotope enrichment processes: the Aerodynamic Separation Process, which uses an aerodynamic technique and is most suitable to separate gases with lower atomic masses; and the Quantum Enrichment advanced isotope enrichment technique, which uses lasers to selectively ionise and separate isotopes with high precision.

The company has previously entered into two supply agreements with TerraPower LLC to supply HALEU from a facility intended to be built at Pelindaba in South Africa: an initial core supply agreement to support the first fuel cores for the initial loading of TerraPower's first-of-a-kind Natrium project which is currently being built in Wyoming; and a 10-year supply agreement for up to a total of 150 tonnes of HALEU starting in 2028.

The construction of an advanced nuclear fuel facility in Texas, USA would become the second facility owned or co-owned by QLE for the production of HALEU, ASPI said. It is also in discussion with the UK government regarding the construction of an advanced nuclear fuel facility in the UK, and has previously announced its intention to spin out Quantum Leap Energy as a public company listed on the NASDAQ stock exchange in the fourth quarter of this year.

Quantum Leap Energy CEO Ryno Pretorius said the company was "excited" to enter the US domestic production market. "Our goal is to scale our technologies as quickly as possible to reduce the bottleneck on the nuclear fuel industry and unlock clean American nuclear energy that will provide consistent, base load power, not only for AI but millions of Americans," he said.

Earlier this year, private energy developer Fermi America announced plans for what it describes as the world's largest energy-driven artificial intelligence complex at Amarillo, Texas, in partnership with the Texas Tech University System: an 11 GW private grid campus for next-generation hyperscale AI in collaboration with the Texas Tech University System. Its campus would be anchored by four AP1000 nuclear units using conventional fuel, with the potential to integrate advanced reactor technologies in future phases. The addition of domestic HALEU production capability would position the private grid as both a significant clean energy generator and a strategic nuclear fuel hub, the company said.

"This decision helps ensure that America's next generation of nuclear reactors will be powered by American innovation, technology, and resolve," Fermi America co-founder and CEO Toby Neugebauer said.

Former US Secretary of Energy Rick Perry, who is also a co-founder of Fermi America, said the project "will help America control its own destiny in nuclear power, create jobs here in Texas, and send a clear message that the United States intends to lead - not follow - in the race for advanced, carbon-free energy."