Department of Energy Seeks to Transform Surplus Plutonium into Nuclear Fuel

The U.S. Department of Energy's Office of Nuclear Energy is currently working with industry to explore if nearly 20 metric tons of surplus plutonium materials could be transformed into advanced nuclear fuel or used in advanced reactor research and development.

Earlier this year, the Department competitively selected Exodys Energy, Flibe Energy, Oklo, SHINE Technologies, and Standard Nuclear for advanced negotiations related to potential allocation of the plutonium materials. Negotiations began on May 27, 2026, and are currently ongoing.

"Surplus plutonium was once viewed solely as a nuclear liability and a multi-billion-dollar financial drain on taxpayers-but it doesn't have to remain one. Thanks to President Trump's leadership, we are redirecting this Cold War legacy to serve as a vital energy asset, powering the next generation of American nuclear innovation," said Deputy Assistant Secretary for the Nuclear Fuel Cycle Josh Jarrell.

Previously, excess plutonium material not needed for national defense purposes was diluted and disposed of in the Waste Isolation Pilot Plant in New Mexico. In May of 2025, President Trump issued an executive order directing the Department to halt the dilute and dispose program, except with respect to the Department's legal obligations to the State of South Carolina, and establish a new program to help bolster the nation's domestic fuel supply.

The Surplus Plutonium Utilization Program was subsequently formed to broaden domestic nuclear fuel supplies, spur innovation on American recycling technologies, and unlock private sector funding to fuel America's nuclear renaissance.

Selected applicants will be responsible for all costs associated with a DOE-authorized recycling and processing facility, including the design, construction, operation, and decommissioning. All program participants are required to submit detailed material safety, security and safeguards plans addressing stabilization, packaging, transportation, security, storage and disposition of the plutonium.

The Department remains committed to the highest standards of safety and security, ensuring that the utilization of plutonium as nuclear fuel is subject to legally binding safeguards, continuous monitoring, and strict independent oversight.

Additional information on the original request for applications can be found HERE.

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