Euratom Calls for Strengthening Conversion and Enrichment Capacities in Europe

In light of geopolitical tensions and the rising demand for nuclear fuel, Euratom has raised concerns over Europe’s dependence on Russia for uranium enrichment and conversion. Despite efforts to diversify suppliers, Euratom emphasizes the need for greater investment in local capacities to secure long-term supply.

On August 13th, the Euratom Supply Agency (ESA) released its annual report analyzing the state of the nuclear fuel market in the European Union. According to data collected from major industry players, the demand for natural uranium, conversion services, and enrichment services increased in 2023 by 24%, 22%, and 12%, respectively. This rise can be partly attributed to the industry’s desire to build up material stocks in response to supply risks due to the Russo-Ukrainian war.

Continuing the trend that began in 2022, the purchase of nuclear materials has exceeded their consumption, despite a 10% annual increase in the amount of fresh fuel loaded into reactors. The inventories held by industry players grew by 5.45%, reaching 37,655 tonnes of natural uranium equivalent. The ESA considers these stocks to be currently sufficient, with most stakeholders holding enough fuel for more than two complete reactor reloads.

Growing Dependence on Russia?

The ESA report highlights the significant increase in activity of the Russian nuclear sector in meeting the EU’s demand in 2023. Although more than 90% of the natural uranium imported into the Union still comes from the same four exporting countries – Canada, Russia, Kazakhstan, and Niger – quantities from Canada and Russia increased by 86% and 73%, respectively, over one year. In terms of conversion, Rosatom’s deliveries to the EU rose by 45%, while ConverDyn also saw notable growth of 37%. Finally, the separation work provided by Russia for EU enrichment purposes increased by 43%.

However, the ESA states that this growth should not be interpreted as a deepening of European dependence on Russian nuclear energy. The surge in activity is mainly due to orders from European operators of VVER reactors – Russian-designed pressurized water reactors found in Finland, Bulgaria, the Czech Republic, Slovakia, and Hungary. Historically, VVER fuels have been supplied by TVEL, the fuel division of Rosatom. Given the geopolitical tensions caused by the Russo-Ukrainian war, which pose a particular risk to the supply of these fuels, operators have purchased and stockpiled significant quantities of fresh fuel, necessarily originating from the Russian fuel cycle.

Western VVER Fuels

Simultaneously, nearly all these operators have engaged with alternative suppliers independent of Russia. The ESA highlights the efforts by operators, manufacturers, and regulators to establish diversified supply chains. For instance, in 2024, Westinghouse supplied RWFA-VVER-1000 fuel for VVER-1000 reactors to Bulgaria [1], as well as initial assemblies for Reactor 2 at Loviisa, a Finnish VVER-440 [2]. Additionally, Framatome and the Slovak operator Slovenské elektrárne signed an agreement in 2023 that includes the delivery of fuel for VVER-440 reactors [3]. Despite these measures, the ESA notes that the current dependence on a single Russian-origin supplier remains “a significant risk to supply security,” given the time required to qualify and develop Western VVER fuel manufacturing capacities.

A Global Shortfall in Conversion and Enrichment Capacities

The ESA’s analysis and projections also identify a long-term gap between demand and conversion and enrichment capacities, particularly for the “Global West” region. This gap could widen given the renewed interest in nuclear energy, notably demonstrated by the 22 nations that signed the Declaration in support of tripling nuclear energy by 2050.

In the short term, the ESA notes that the needs of the European nuclear fleet are adequately covered by existing contractual commitments with nuclear material and service suppliers. However, the Agency also observes that the conversion-enrichment capacities currently available on the market would not be sufficient to compensate for the absence of Russian capacities, should they no longer be available.

The report encourages recent investments made by the “Sapporo 5” – Canada, the United States, France, Japan, and the United Kingdom – aimed at developing domestic capacities:

• In the United States, the Metropolis conversion plant, which was mothballed in 2017, was restarted in 2023 and could reach 10,000 tU by 2028. Urenco also plans a 15% capacity extension at its Eunice enrichment plant in New Mexico.
• In the United Kingdom, £13M has been granted to Westinghouse for the renovation and expansion of the Springfields site, and the Capenhurst enrichment plant is expected to produce up to 10 tonnes of HALEU per year by 2031.
• In France, Orano plans an ambitious 30% capacity extension at the George Besse 2 enrichment plant and is gradually ramping up production at the Philippe Coste conversion plant.

While these efforts should help secure part of the European demand in the coming years, the Agency insists: “Additional investments in new capacities will be essential to guarantee stable and reliable access to conversion and enrichment services in the future.” To this end, the ESA indicates that political and contractual guarantees would be necessary to reassure investors about the viability of the projects they should finance. ■