Fresh Tricks for Nuclear Fuel

In the current series on nuclear power advances we turn to nuclear fuel.  The nuclear power industry has relied on isotopes of uranium coveted for loosely configured nuclei, such as the U-235 isotope.  When a nucleus is hit by a slow moving neutron, it splits apart and shoots out more neutrons that hits additional nuclei of uranium atoms.  Voilà, fission! 

Only about 0.7% of natural uranium is the most preferred U-235.  Natural uranium is about 90% of the common isotope U-238.  Unfortunately, U-238   is not fissile and is thus just feedstock for making fissile materials.   The situation drives an elaborate supply chain of mining, refinement and enrichment.  Most uranium ends up as low enriched uranium fuel used in the light water reactors that make up the largest share of nuclear power installations.  There are alternatives, giving rise to an alternative to the usual uranium mining companies to tap the growth in clear power as an alternative to oil and gas. 

Indeed, there are many alternatives to conventional uranium.  Some clever folks have mixed a bit plutonium in with natural uranium to get MOX fuel (mixed oxide).  Even reprocessed uranium or depleted uranium can be used for greater economy.   It is not a new fuel concept.  The first MOX fuel was used in a thermal reactor in the early 1960s. 

MOX fuel is currently produced in Europe, Russia and Japan.  Japan Nuclear Fuel Ltd. fabricates MOX in small quantities.  Its capital stock is owned by a mix of other Japan-based electric power companies and industrial players.  Production of MOX fuel began in late 2018 in Russia by that country’s government owned power consortium, Rosatom State Corporation.  Russia is keen on using MOX fuel in its fast neutron reactor, the BN-800 design.  Before the coronavirus pandemic threw a wrench in everybody’s plans, Russia has promised to load MOX fuel into one of it’s BN-800’s by the end of 2021.

The United States has tried its hand at MOX fuel production.  The U.S. Department of Energy was given the task of disposing of sixty-eight metric tons of surplus weapon-grade plutonium left over from the second world war.  In 2005, the DOE turned the first dirt on a MOX fuel production facility at a site near Aiken, South Carolina.  Billions were paid to contractors, including an entity that began as Shaw Areva and, after several mergers and acquisitions, ended up with McDermott International (MCDIF:  OTC) as the most recent entity to hold what has become a very smelling bag.  The government contract was terminated but legal liabilities are still winding through the courts, casting a long shadow of doubt across the shares of McDermott.   

TRIGA fuels may show more promise.  An acronym for Training, Research, Isotopes, General Atomics), TRIGA reactors use uranium zirconium hydride fuel.  This particular fuel can be used three or four times longer than other types of fuel, giving TRIGA reactors a clear economic advantage.  Historically, TRIGA reactors were intended for use by scientific institutions and universities. 

There are about five dozen TRIGA reactors in use around the world, about have of which are in the U.S. Recently a small power plant and heat source has been proposed.  Privately-held General Atomics is the leader in the TRIGA reactor and fuel market.  It does have some competition from INVAP in Argentina and the Korea Atomic Energy Research Institute in South Korea.  The Korean TRIGA reactors were shut down several years ago, but the KAERI knowledge base remains viable.  

X-energy is developing a TRISO fuel  -  TRI-structural ISOtropic particle fuel.  The particles are made up of uranium, carbon and oxygen, each about the size of a poppy seed.  A number of these tiny particles are encased in three layers of carbon and ceramic materials that serve as a containment system.  TRISO fuel will be used in X-energy’s new reactor design, for which the company has received considerable financial support in the form of grants and the Department of Energy.

Privately-held X-energy was founded in 2009 and has since undertaken at least four financing rounds.  The most recent round in January 2021, brought in $1.9 million to support the company’s nuclear reactor and fuel design efforts.  Investors, especially those who are qualified investors would do well to watch for news of X-energy’s next round, for certainly there will be more capital raises to keep the TRISO project moving forward.

 

More nuclear fuel innovations and producers in the next post.

 

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.