Ann: US Government Approves US$700m Package for HALEU Program, page-2

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Silex Systems Limited | ABN 69 003 372 067
LHSTC, New Illawarra Road, Lucas Heights NSW 2234
Telephone: +61 2 9704 8888 | Facsimile: +61 2 9704 8851 | Website: www.silex.com.au
US Government Approves US$700m Package for HALEU
Availability Program in Support of US Nuclear Industry
17 August 2022
Silex Systems Limited (Silex) (ASX: SLX; OTCQX: SILXY) is pleased to acknowledge the
passage into law of the Inflation Reduction Act of 2022 (IRA) in the US, which includes a
US$700 million funding package to support the HALEU Availability Program to be conducted
over the next four years by the US Department of Energy (DOE).
HALEU (High Assay Low Enriched Uranium) is the fuel required by many of the emerging
advanced Small Modular Reactors (SMRs) - the next-generation of nuclear power technology.
Global Laser Enrichment (GLE), the exclusive licensee of the SILEX laser technology for
uranium enrichment, will explore opportunities to be a potential participant in the HALEU
Availability Program. GLE submitted a response to a Request for Information (RFI) from the
DOE on this matter in February 2022 and will be ready to respond to any related Request for
Proposals (RFP).
Michael Goldsworthy, Silex’s CEO/Managing Director said:
“The signing into law of the Inflation Reduction Act this week is a pivotal turning point in the
revitalisation of nuclear power in the US. The IRA is a cornerstone of America’s response to
climate change, and recognizes nuclear power as a critical component of a carbon free,
resilient and stable electricity grid.”
“As the US Government ramps up initiatives to domesticate its nuclear fuel supply chain and
lessen its dependence on nuclear fuel imports, particularly from Russia, we expect GLE may
have increasing opportunities to commercialise the SILEX technology,” he added.
There is currently no commercial source of HALEU fuel in the US today, and many SMR
developers had planned to source their early HALEU fuel requirements from Russia. Given
the growing concern over energy security and supply chains in the wake of Russia’s invasion
of Ukraine, those plans may no longer be realistic, creating significant urgency in establishing
the HALEU Availability Program.

The IRA specifies that the US$700 million of HALEU Availability funding be spent in the
following three categories:
• Licensing - US$100m is provided for the licensing and regulation of HALEU fuel
fabrication and enrichment facilities and the certification of transportation packages.
• Enrichment - US$500m is provided for DOE to produce HALEU as fast as possible
and to provide it to SMR developers. DOE is also directed to set up a "HALEU
Consortium" which may include any entity involved in any stage of the nuclear fuel
cycle to partner with DOE to support the availability of HALEU for domestic commercial
use. DOE is also provided funding to hold a survey of stakeholders to estimate the
quantity of HALEU necessary for domestic use.
• General Support - US$100m is provided for general activities to support the
availability of HALEU for civilian domestic research, development, demonstration, and
commercial use.
The IRA requires that the funding shall be provided by the DOE Office of Nuclear Energy's
HALEU Availability Program through a competitive merit-based process, and that the DOE
spend the money by September 2026. The IRA also includes several other measures to
support the economic viability of existing nuclear power plants, including a nuclear power
production tax credit, which along with ongoing support for the development of advanced
SMRs, helps place nuclear power on a level playing field with subsidised renewable energy
sources.
Silex and Cameco are currently reviewing the potential to accelerate GLE’s commercialisation
of the SILEX technology in order to respond to these emerging opportunities, subject to
alignment with evolving market conditions.