Unclear EU policy on Russian nuclear fuel imports hurts investment, says Orano
PARIS, Oct 9 (Reuters) -The European Union's lack of clarity regarding Russian nuclear fuel imports is holding back investment in new uranium enrichment plants, said an executive at French nuclear fuel specialist Orano.
WHY IT'S IMPORTANT
Long-term prices for enriched uranium, used to make fuel for nuclear power plants, have risen from $60 per separation work unit (SWU) before the Ukraine war to $166 today, after some Western nuclear power producers reduced imports from top supplier Russia.
The higher prices for enriched uranium, produced by firms like Orano, will raise costs for nuclear power producers in coming years.
KEY QUOTES
"What is holding operators back a bit from investing in new enrichment capacities is the need for a clear framework," said Jacques Peythieu, Orano's Director of Customer and Strategy.
"The United States is currently...aiming for zero Russian imports from 2028 - with exceptions - and has customs duties on Chinese imports. Europe is much more timid and does not have a very clear policy on the subject."
KEY CONTEXT
Russia supplied more than 25% of European and American enriched uranium before the start of the Ukraine war in February 2022.
Russia's Rosatom accounts for 43% of installed uranium enrichment capacity, compared to 31% for the European group Urenco and 12% for state-owned Orano.
The U.S. implemented a ban on imports of enriched uranium from Russia in August, with some exemptions, but in Europe different countries have taken different approaches.
WHAT'S NEXT
Orano will break ground on a 1.7 billion euro ($1.86 billion) expansion at its fuel enrichment plant in southern France on Thursday, after seeing a strong rise in demand from its U.S. customers.
It also plans to start enriching uranium in the United States in the early 2030s as part of a new project in Tennessee.
($1 = 0.9120 euros)
Reporting by Benjamin Mallet. Writing by Dominique Patton. Editing by Christina Fincher
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