RELIABLE FUEL SUPPLY PROJECT

The Reliable Fuel Supply (RFS) Project is the actual implementation of President Bush’s policy to provide reliable access to nuclear fuel for civilian reactors to countries that refrain from pursuing their own enrichment and reprocessing technologies. In 2007, NNSA sought proposals to down blend 17.4 metric tons of highly enriched uranium (HEU) into reactor-grade fuel for use in the RFS program. This program also contributes to the Administration’s proposed Global Nuclear Energy Partnership (GNEP). In 2005, Energy Secretary Bodman announced that the United States would set aside 17.4 metric tons of HEU declared excess to the U.S. nuclear weapons program. The material would be down blended to about 290 metric tons of low enriched uranium, worth approximately $615 million. The fuel will be available to qualifying entities that face a disruption in supply that cannot be corrected through normal commercial means. “Down blending this HEU will mark an important milestone in implementing the reliable fuel supply arrangement. Such a mechanism is essential if we are to avoid the uncontrolled spread of fuel cycle capabilities needed for producing nuclear fuel that can also be used for manufacturing nuclear weapons,” said Linton F. Brooks, NNSA Administrator. The down-blend contractor would be compensated through an exchange of uranium in lieu of payment. In April 2007, the actual request for proposals (RFP) was issued by NNSA. In June of the same year, a contract was awarded to the team of Wesdyne (Westinghouse subsidiary) and Nuclear Fuel Services (NFS). This arrangement would require the actual down blending of HEU to occur at the NFS facility in Erwin, Tennessee. The down-blended product would be transported to the Westinghouse facility in Columbia, South Carolina, for exchange or conversion to UF6. It would then be stored at the fabricator’s site for use as fuel feedstock for a reliable fuel supply. To date, the Y-12 National Security Complex (NSC) has provided more than eight metric tones (MT) of HEU to NFS. NFS began down blending the material in April 2008 which will be exchanged or converted to UF6 to be placed in the Government account.