Nuclear Fuel Services awarded $122 million contract by TVA for uranium downblending

ERWIN, Tenn. (WJHL) — Nuclear Fuel Services (NFS) was awarded a $122 million contract extension by the Tennessee Valley Authority (TVA) for the downblending of highly enriched uranium into low enriched uranium.

According to NFS’ parent company, BWX Technologies, the Erwin facility will continue downblending operations for TVA in support of the National Nuclear Security Administration’s defense programs objectives from July 2025 through June 2027.

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“We are proud of the role we play in national defense and pleased that we can continue our work with the TVA and NNSA in support of this mission,” Ronald K. Dailey, NFS president, said in a release. “This contract extension also enables operations and engineering continuity with our uranium conversion and purification contract with NNSA.”

Downblending involves mixing highly enriched uranium with natural uranium, creating low enriched uranium for commercial and national defense purposes.

According to the company, NFS has been downblending highly enriched uranium since 1995, when it was awarded a government contract to downblend a stockpile of highly enriched uranium as part of Project Saphire, a secret joint operation between the U.S. and Kazakhstan to remove highly enriched uranium from the former Soviet state.

Last year, Nuclear Fuel Services was awarded a $300 million U.S. Navy contract for the production of nuclear reactor fuel for submarines and aircraft carriers.

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