Aalo Signs Historic Fuel Deal with Urenco

In July, our team at Aalo Atomics signed a historic commercial contract with Urenco for the delivery of low-enriched uranium (LEU). The uranium, in the form of uranium hexafluoride (UF₆), will be fabricated into fuel pins powering the Aalo-X experimental reactor.

The contract is the first time a Western company has commercially sourced nuclear fuel for a next-generation power plant.

Urenco, one of the three major enrichment providers in the world, operates centrifuge plants in Germany, the Netherlands, the UK, and the USA. It reported a global production capacity of 17,300 tSW/a at the end of 2024.  

Most existing light‑water reactors use uranium enriched to 3 to 5% U‑235, so the 5% material we will use in Aalo‑X is in line with today’s commercial standards. Our contract with Urenco underscores Aalo’s urgency in its go-to-market strategy and commitment to scalability.

Why this Contract Matters

1. Commercial reactors need fuel fast

Most of our peers in the advanced‑reactor space are dependent on the U.S. Department of Energy (DOE) to supply high‑assay low‑enriched uranium (HALEU), which is uranium enriched up to 19.75%. But domestic production of HALEU is extremely limited. A recent Reuters article notes that limited domestic production is forcing SMR developers to compete for small portions of DOE-allocated HALEU.

In 2024, Congress banned Russian imports of uranium, further reducing availability by cutting off the primary supply line of HALEU. (Last October, the DOE picked four companies to stand up domestic production of HALEU but these efforts will take years before meaningful quantities are commercially available.)  

By contrast, Aalo is buying its fuel on commercial terms. This move lets us sidestep supply‑chain bottlenecks, builds momentum for a resilient Western fuel market, and removes dependence on government‑sponsored down‑blended uranium.

2.  Leveraging proven fuel forms instead of exotic ones

High‑assay fuels and novel forms such as TRISO or uranium‑zirconium‑hydride (UZrH) promise impressive performance, but they are not yet commoditised. Within our company, we have evolved to recognize the necessity of leveraging mature supply chains for our nuclear fuel.  

We visited fuel fabrication plants where UF₆ is chemically converted into black UO₂ powder then compressed into pellets and cladded into fuel rods. We met with nuclear fuel leaders like GE, Framatome, and Westinghouse. We analyzed the performance, safety, and cost implications of many fuel types. Ultimately we determined that the decades of experience and billions of dollars of investments existing suppliers have made in UO₂ fuel could be turned to our advantage. Exotic fuel lines still operate at pilot scale. By choosing 5%‑enriched UO₂, we gain access to an existing global supply chain and avoid the multi‑year delays associated with unproven fuels.  

3. Scaling to meet market demand

Our ambition is not to build one experimental reactor but to deploy hundreds of Aalo pods to power data centers with clean, reliable energy. That means our fuel supply lines must be able to scale with us. Urenco supplies enrichment services to more than 50 customers in 20 countries. This scale gives us great confidence that we will have nuclear fuel available when we need it, with reactors rolling out of our factory.  

The Aalo‑X demonstration reactor will operate on 5%-enriched UO₂ (LEU). Our commercial Aalo Pod will run on 8%‑enriched UO₂ (LEU+) while using the same standardized fuel form. This increased enrichment level will improve fuel performance and extend the lifespans of our reactors, while maintaining fuel assembly design from demonstration to deployment. There are multiple potential partners who can fabricate UO₂ fuel rods from UF₆. These experienced fuel fabricators can meet our needs as we grow. This strategy lets us focus on scaling reactor manufacturing rather than diverting capital into complex, time-intensive fuel fabrication plants.
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4. Cost stability from commercial LEU

Commodity markets impact us because fuel is a recurring operating cost. In 2024, the spot price of uranium was roughly US$72/lb, a price that, while higher than historic lows, still yields a very low “idiot index” for UO₂ compared with the development costs of exotic fuel forms (like TRISO). LEU and LEU+ enrichment is performed by a handful of suppliers using mature centrifuge technology. Currently there is surplus global enrichment capacity. Using commoditized LEU reduces project risk, stabilizes our cost structure, and enables us to offer competitively priced electricity. Stabilizing costs is particularly important for smaller reactors where fuel is a larger fraction of total cost.

5.  Catalyzing the fuel supply chain

Our need for enriched uranium won't be satisfied with a one‑off purchase. Each Aalo reactor will require fresh fuel every few years, creating a recurring revenue stream for our suppliers. As we scale from one reactor to hundreds, we will buy thousands of tonnes of UF₆, convert it into UO₂, and fabricate fuel assemblies. By committing to purchase through commercial contracts, we send a clear demand signal that encourages suppliers to expand their conversion, enrichment, and fabrication capacity. Expanding domestic enrichment and fuel‑fabrication facilities will cultivate high‑quality American jobs. And it will help reshore vital know-how across nuclear supply chains.

6.  Meeting our July 4th, 2026 criticality goal

Every second matters. Urenco will deliver us our first fuel shipment in late 2025/early 2026. We will work with a domestic UO₂ fuel fabricator to manufacture fuel rods tailored for Aalo‑X. At Idaho National Lab, we will load into Aalo-X fuel assemblies nearly identical to those planned for our future commercial fleet. Aalo-X, our experimental reactor, is on track to reach its criticality target by July 4, 2026.  

The successful execution of this contract demonstrates that advanced reactors can be built and fueled on commercial timelines, proving that nuclear innovation does not have to wait for bespoke fuel lines or government subsidies.

Looking Ahead

Signing this contract is not the end of our fuel strategy work. It is the beginning. We are already negotiating follow‑on agreements for 8%‑enriched UF₆ and exploring multi‑deployment agreements with data‑center operators to ensure predictable capacity and cost curves. Our team will continue to build in public, sharing details about fuel fabrication, regulatory milestones, and supplier partnerships.

Aalo’s mission is to make nuclear energy fast, affordable, and reliable. Using commercially available fuel allows us to focus on delivering a reliable product to our customers, rather than reinventing the fuel cycle. We invite industry partners, investors, and regulators to join us as we build the foundation for the Second Atomic Age.