NNSA awards BWXT $1.5B defense fuels contract

September 17, 2025, 3:00PMNuclear News
BWXT’s Centrifuge Manufacturing Development Facility, currently under construction in Oak Ridge, Tenn., will provide the centrifuges that will be used at the future DUECE pilot plant. (Photo: BWXT)

The Department of Energy’s National Nuclear Security Administration has awarded BWX Technologies a contract valued at $1.5 billion to build a Domestic Uranium Enrichment Centrifuge Experiment (DUECE) pilot plant in Tennessee in support of the administration’s efforts to build out a domestic supply of unobligated enriched uranium for defense-related nuclear fuel.

According to the NNSA, the decision to sole source the DUECE pilot plant contract to BWXT’s Enrichment Operations subsidiary will allow the administration to “streamline the pilot plant deployment, ensure timely execution to meet defense mission needs, and provide the best value solution to the government.”

Background: The contract follows the NNSA’s award in 2024 to BWXT subsidiary Nuclear Fuel Services of a contract for a yearlong engineering study to evaluate options for deploying a pilot plant capable of testing DUECE, a gas centrifuge uranium enrichment technology developed at Oak Ridge National Laboratory, and producing domestic-origin enriched uranium the NNSA can use for multiple national security purposes.

The pilot plant will be located at the Nuclear Fuel Services site in Erwin, Tenn., and will be supported by BWXT’s Centrifuge Manufacturing Development Facility at Oak Ridge. BWXT began construction of its Oak Ridge facility in June on 97 acres of industrial park land the company purchased with assistance from Tennessee’s Nuclear Energy Fund.

Contract scope: Under the contract, BWXT said it will initiate requirements to build the pilot plant, which includes designing the plant, applying for the necessary licenses, procuring long-lead equipment, preparing the physical site, demonstrating centrifuge manufacturing readiness, and operating the plant.

The pilot plant will demonstrate low-enriched uranium production for the NNSA’s defense missions, specifically tritium production, before ultimately being repurposed to produce high-enriched uranium for naval propulsion applications.

According to the NNSA, the DUECE technology will not be used to produce enriched uranium for the commercial nuclear power industry. U.S. policy and international agreements require that any uranium used for weapons purposes—including the LEU used to produce tritium to maintain the nation’s nuclear deterrent—be “unobligated,” or free of peaceful use restrictions.

Quotes: “NNSA’s selection of BWXT for this project acknowledges our long-standing role as a trusted partner in advancing the nation’s nuclear defense mission,” said Rex D. Geveden, BWXT president and CEO. “Once operational, both facilities will enable us to scale manufacturing, so the United States maintains sovereign capability to produce vital nuclear materials for national security.”

In announcing the contract, the NNSA said, “Partnering with commercial industry for this pilot plant helps to establish critical supply chains for enduring defense enrichment requirements and ensures capabilities are ready on time to support mission need dates.”


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