TerraPower plans to invest in South African HALEU laser enrichment technology

TerraPower announced todaythat it has signed a term sheet with ASP Isotopes Inc. asthe first step of a plannedinvestmentin the construction of a high-assay low-enriched uranium (HALEU)enrichment facility and the eventual purchase of HALEU produced at the facilityto fuel its Natrium fast reactors.

What TerraPoweris after: Non-nuclear construction activities began this summer at the Wyoming site where TerraPoweris building the first 345-MWe sodium-cooled fast reactor Natrium plantwith support from a public-private partnership with the DOE's Advanced Reactor Demonstration Program.Natrium needs metallic HALEU fuel, anddespite action by the Department of Energy to set up aHALEU Availability Program for enrichmentand deconversion, it'snot yet clear when TerraPowerwill obtain enough HALEU to fuel the reactor.

"TerraPowerhas been working diligently to ensure a stable, secure HALEU supply chain for our Natriumreactors. This agreement is another example of our commitment and investments to commercialize HALEU production domestically and in allied countries," said Chris Levesque, TerraPower president and chief executive officer. "We are optimistic about ASP Isotopes enrichment capabilities and planned timeline to help ensure advanced nuclear energy can achieve its necessary role in meeting climate energy targets."

ASP Isotopes said in a November 2023 press releasethat it was "in active discussions with various regulatory bodies and governments to determinethe location for its first HALEU production facility. Their aim is to supply commercial quantities of HALEU for SMRs by 2027."

TerraPower notes that it has made agreements with fuel cycle companies in the United States and that it "remainsan active member and participant of DOE's HALEU Consortium."

TerraPowerhas signed memoranda of understanding and agreements with Centrus, Framatome, and Uranium Energy Corporation. Regardless of how it sources uranium feedstock, TerraPowerexpects to fabricate its fuel at a Natrium fuel facility on a Global Nuclear Fuel-Americas site in Wilmington, N.C.

What ASP Isotopes can offer: ASP Isotopes identifies as a "development stage advanced materials company" focused on developing proprietary isotope enrichment processes-an "aerodynamic separation process"(ASP)for lighter isotope productionand a "quantum enrichment"technologymore suitable for enriching heavy isotopes of uranium.

ASP Isotopes is in the process of constructingthree isotope enrichment facilities in Pretoria, South Africa,that will enrichcarbon-14 for healthcare and agrochemicals, silicon-28for semiconductors, and ytterbium-176for cancer treatment. The company plans to enrichuraniumfor the nuclear energy sector using the laser-based "quantum enrichment technology"the company is developing.

According to an October 30 presentationbyASP Isotopes, their laser enrichment technology differsfrom the AVLIS technology developed in the United States and transferred to USEC which later terminated adevelopment program, and the SILEX technology developed in Australia and now being developed Global Laser Enrichment, which is jointly owned by Silex Corp. and Cameco Corp.

To date, no laser enrichment technology has been used to produce enriched uranium for a commercial market; plants operatingaround the world today use gaseous centrifuge technologies.

Terms of the agreement: According to an October 30 news releasefrom ASP Isotopes, the term sheet "contemplates the preparation of definitive agreements pursuant to which TerraPowerwould provide funding for the construction of a HALEU production facility." TerraPowerand ASP Isotopes anticipatea "long-term supply agreement for the HALEU expected to be producedat this facility pursuant to which the customer would purchase all the HALEU produced at the facility over a 10-year period after the expected completion of the facility."

If the agreement is carried out as planned, TerraPowerwould purchase the HALEU from aU.S.-basedASP Isotopes subsidiary, Quantum Leap Energy, and would enjoy a "period of exclusivity"during which ASP Isotopesand Quantum Leap Energywouldnot negotiate with third parties for the supply of HALEU or work on another ASP technology-based uranium enrichment facility.

ASP Isotopes has previously announcedagreements with unnamed U.S. small modular reactor developers.

Taking questions after his October 30 presentation, Paul Mann, chairmanand chief executive officer of ASP Isotopes and Quantum Leap Energy, was asked about those earlier agreements with multiple U.S. small modular reactor developers. Mann saidthat "TerraPowerhave offered to put a considerableamount of capital into this project, and in return for that, we have said we will not sign an identical agreement with another SMR company between now and a certain date in the future, so we are giving them time to put capital into the project."