DOE Seeks State Partners for Integrated Nuclear Fuel Campuses to Strengthen Domestic Supply Chain

The U.S. Department of Energy (DOE) has launched a nationwide solicitation inviting states to propose locations for “Nuclear Lifecycle Innovation Campuses,” a program intended to consolidate every stage of the nuclear fuel process and reduce America’s dependence on foreign uranium. Announced on Wednesday, the initiative is designed to stimulate private investment, expand enrichment capacity, and introduce commercial-scale recycling of spent fuel, an activity currently unavailable in the United States.

Under the plan, each campus would be capable of hosting functions that span mining, conversion, enrichment, reactor operation, and end-of-life fuel management. DOE officials said clustering these activities at single sites would lower transportation risks and costs, create opportunities for colocated data centers, and encourage advanced reactor demonstrations. According to preliminary department estimates, a fully built campus could attract up to $50 billion in private capital, reflecting escalating demand for emission-free baseload power from technology companies that operate hyperscale computing facilities.

Today, nuclear energy supplies roughly 21 percent of U.S. electricity, yet the domestic industry relies heavily on imported uranium and enrichment services. By developing self-contained fuel hubs, the department aims to secure critical materials and shorten the time needed to bring next-generation reactors to market. DOE representatives emphasized that only about 5 percent of the energy potential in conventional fuel assemblies is extracted during a reactor’s first cycle. The remaining material, now classified as spent fuel, could be chemically processed and reused, reducing the accumulation of waste destined for storage sites such as Yucca Mountain in Nevada.

The request for state participation outlines eligibility criteria that include workforce readiness, supportive regulatory environments, and existing energy infrastructure. States must also present regional priorities that align with federal objectives to revitalize the nuclear sector. Energy Secretary Chris Wright said the program is expected to spur innovation, create skilled jobs, and deliver reliable power that supports future economic growth. He framed the campuses as a cornerstone of the administration’s broader strategy to reinvigorate the nation’s civil nuclear base.

Wednesday’s announcement builds on earlier federal actions intended to rebuild domestic enrichment capacity. In January, the DOE allocated $2.7 billion to expand U.S. facilities, directing $900 million to Centrus Energy Corp. for the ramp-up of its plant in Piketon, Ohio. Although that facility has not yet achieved commercial-scale output, department officials consider it a critical step toward establishing a resilient supply chain that can provide fuel for both existing reactors and forthcoming advanced designs.

Beyond enrichment, the administration has taken several steps to accelerate reactor deployment. A series of executive orders signed in May sought to streamline licensing requirements for large and small reactors alike, while a separate agreement reached last autumn with Cameco Corp. and Brookfield Asset Management earmarked up to $80 billion for constructing Westinghouse’s latest large-scale reactor design at multiple U.S. sites. Parallel programs managed by the DOE target the commercialization of smaller, modular reactors that can be paired with industrial facilities or remote communities.

Financial support from federal loan programs is expected to play an essential role in meeting construction targets. During a public appearance in November, Secretary Wright indicated that a significant portion of available loan authority would be dedicated to new nuclear plants, and he expressed the goal of having dozens of projects underway within the current administration’s term. Analysts note that achieving such an outcome depends not only on capital but also on resolving supply-chain constraints that the proposed campuses are intended to address.

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Advanced fuel recycling remains a central feature of the initiative. While countries such as France have operated industrial-scale reprocessing plants for decades, the U.S. halted commercial activity in the 1970s amid proliferation concerns. The DOE now argues that modern technologies can recover usable material safely and economically, thereby lowering the volume of high-level waste and extending uranium resources. Independent research from the International Atomic Energy Agency indicates that recycled fuel could cover a significant share of global reactor requirements if appropriate facilities are constructed.

The department’s solicitation package specifies that a single campus may ultimately encompass pilot lines for recycling, full-scale enrichment cascades, and demonstration plants for next-generation reactors. DOE planners also envision integrating energy-intensive data centers that could take advantage of on-site carbon-free power, creating an ecosystem where generation and consumption occur side by side. States have until later this year to submit their expressions of interest; formal site evaluations are scheduled for 2025, with construction timelines contingent on congressional appropriations and private-sector commitments.

While policy momentum is growing, industry stakeholders caution that challenges remain. Establishing a nuclear campus requires navigating federal and state regulatory reviews, securing community support, and coordinating complex supply networks. Nonetheless, the DOE maintains that a regional approach, supported by targeted federal incentives, offers the most effective path to rebuilding a domestic fuel cycle capable of supporting the next wave of U.S. nuclear reactors.

Crédito da imagem: Adam Jeffery / CNBC