Russia Approves New Pricing Formula For ‘Megatons’ Programme
Written by NucNet
Thursday, 16 July 2009
Russia has approved a new pricing formula between Techsnabexport (Tenex) and the United States Enrichment Corporation (USEC) for the supply of low-enriched uranium (LEU) for use as fuel in commercial US reactor units.
Russia said the new pricing formula is “in line with the current trends on the global uranium market” and will allow Russia and the US to implement their commitments under the ‘Megatons to Megawatts’ agreement signed between the two countries in 1993. This agreement envisages processing about 500 tonnes of highly enriched uranium (HEU) extracted from Russian nuclear weapons into LEU for use as fuel in US nuclear reactors.
Under the Megatons to Megawatts programme the US buys highly enriched weapons-grade uranium that has been down-blended to LEU for use in commercial reactors. The 20-year programme was established in 1994 between USEC, the United States’ primary nuclear fuel producer, and state-owned Tenex, its Russian counterpart.
Russia approved the new formula on 11 July 2009. The formula had already been approved by the US and will apply from 2010 until the planned end of the existing contract in 2013.
Tenex had asked for the pricing structure to be reviewed so it could “share in the improved uranium market prices”.
Last year USEC said a total of 325 metric tonnes of HEU from nuclear warheads has been down-blended into LEU for electricity generation under the Megatons to Megawatts programme.
USEC said the programme had eliminated the equivalent of 13,000 Russian nuclear warheads, and that the resulting LEU could generate enough electricity to meet the annual needs of 361 million US homes.
