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DOE Weighs Turning 20 Tons of Surplus Plutonium into Nuclear Fuel Amid Industry Talks

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The US Department of Energy's Office of Nuclear Energy is working with industry partners to evaluate whether nearly 20 metric tons of surplus plutonium could be converted into advanced nuclear fuel or used in research and development for next-generation reactors, the DOE said in a statement on Monday.

Earlier this year, the department said it selected five companies for advanced negotiations over potential access to the material: Exodys Energy, Flibe Energy, Oklo, SHINE Technologies, and Standard Nuclear. Talks began on May 27 and remain ongoing.

Under previous policies, excess weapons-related plutonium not required for defense was blended down and disposed of at the Waste Isolation Pilot Plant in New Mexico. A 2025 executive order directed the Energy Department to halt most of the dilute-and-dispose approach, except where required by obligations to South Carolina, and to establish a new program aimed at expanding the domestic nuclear fuel supply.

The resulting Surplus Plutonium Utilization Program is intended to expand domestic fuel capabilities, encourage development of recycling technologies, and attract private investment into the nuclear sector.

Under the framework being discussed, selected companies would fund and build DOE-authorized recycling and processing facilities, covering design, construction, operations, and eventual decommissioning. Participants would also be required to submit detailed plans covering safety, security, safeguards, transportation, storage, and final disposition of the material.

The Energy Department said the program will operate under legally binding safeguards, continuous monitoring, and independent oversight to ensure security and compliance in any future use of the material for nuclear fuel.

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