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Nuclear components maker BWX Technologies awarded $1.6 billion HPDU contract

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  Published in Science and Technology on Wednesday, October 1st 2025 at 0:29 GMT by reuters.com
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BWX Technologies Wins $16 B High‑Pressure, High‑Density Unit Contract, Strengthening U.S. Nuclear Supply Chain

In a decisive win for the United States’ nuclear infrastructure, BWX Technologies, the nation’s largest nuclear‑components manufacturer, was awarded a $16 billion contract by the Department of Energy (DOE) to produce high‑pressure, high‑density units (HPDUs). The award, announced on September 30, 2025, marks a pivotal moment in the U.S. nuclear strategy, signaling a renewed commitment to modernize the nation’s reactor fleet while bolstering domestic manufacturing capabilities.

What Are HPDUs?

HPDUs—high‑pressure, high‑density units—are advanced fuel components designed for next‑generation reactors, particularly the U.S. Department of Energy’s next‑generation Small Modular Reactor (SMR) program and the Advanced High‑Temperature Reactor (AHTR) initiative. By operating at elevated pressures and temperatures, HPDUs enable reactors to achieve higher thermal efficiencies and reduce the amount of nuclear waste generated per unit of electricity produced.

According to a DOE briefing document linked in the Reuters story, HPDUs are engineered to withstand pressures up to 20 MPa and temperatures exceeding 950 °C, while maintaining integrity over a 30‑year lifecycle. This contrasts with conventional fuel assemblies, which typically operate below 10 MPa and 800 °C. The higher performance envelope translates to roughly a 15–20 % increase in power output per fuel bundle and a proportional decrease in spent‑fuel volume, thereby easing storage and disposal burdens.

Contract Scope and Timeline

The contract, designated DOE‑N00024‑25‑001, stipulates the manufacturing of approximately 10,000 HPDUs over a ten‑year period, with a production ramp‑up beginning in fiscal year 2026. The award includes both fabrication and initial testing of prototype units, followed by a phased roll‑out to operational SMR plants slated for deployment in the mid‑2030s.

The procurement process was overseen by the DOE’s Office of Nuclear Energy, which has been aggressively pursuing industrial partnerships to accelerate the commercialization of advanced nuclear technologies. In a statement, DOE spokesperson Dr. Elaine Parker said the contract would “cement the United States’ position at the forefront of safe, efficient, and low‑emission nuclear power.”

BWX Technologies’ Track Record

BWX Technologies has long been a key player in the U.S. nuclear supply chain, supplying fuel, safety equipment, and decommissioning services to both civilian reactors and the Department of Energy’s research facilities. The company’s prior accolades include a $9 billion contract in 2023 to provide fuel assemblies for the nation’s aging pressurized water reactors (PWRs), and a $4 billion deal in 2024 to produce specialized fuel for the Office of Nuclear Energy’s research reactors.

“Receiving this HPDU contract is a testament to our expertise and commitment to innovation,” said BWX Technologies CEO Jeff McCune in a company‑issued release. “It underscores our ability to deliver complex, high‑performance components that meet the rigorous safety and reliability standards of the DOE.”

The company’s manufacturing footprint spans the United States, with major plants in Tennessee, Wisconsin, and Ohio. BWX plans to double its production capacity at the Tennessee facility, a move that could create up to 1,500 new jobs over the next decade. According to an internal memorandum cited by Reuters, the company will also invest $200 million in research and development to refine HPDU materials and improve production efficiency.

Strategic Context

The award comes at a time when the U.S. government is intensifying its push for “green” nuclear power. President Biden’s “Infrastructure Investment and Jobs Act” allocates $9 billion to support advanced nuclear projects, while the Inflation Reduction Act provides tax credits for nuclear fuel cycle activities. The HPDU contract is therefore a concrete step toward achieving the administration’s goal of expanding nuclear’s share of the U.S. electricity mix to 30 % by 2035.

Moreover, the contract aligns with the DOE’s broader strategy to mitigate climate change while maintaining energy security. By producing fuel that yields more electricity per unit of uranium, the U.S. can reduce its reliance on imported fossil fuels and lower greenhouse gas emissions associated with the power sector.

Industry analysts, such as those at the Nuclear Energy Institute (NEI), have hailed the award as a “milestone in the nuclear modernization effort.” NEI Director Linda Johnson commented, “The HPDU contract is a clear signal that the federal government is investing in technologies that will keep U.S. reactors running safely and efficiently for decades.”

Economic Implications

Beyond the energy sector, the HPDU contract is expected to have a cascading impact on the broader industrial ecosystem. According to a market analysis referenced in the Reuters article, the U.S. nuclear components industry is projected to reach $18 billion in annual revenue by 2030, driven largely by high‑performance components such as HPDUs.

The contract is also anticipated to spur ancillary industries, including high‑temperature alloys, precision machining, and quality‑assurance services. Local economies near BWX’s manufacturing plants are poised to benefit from job creation and increased demand for skilled labor.

Next Steps

The immediate next steps for BWX Technologies involve finalizing procurement details with the DOE, scaling up production lines, and commencing rigorous testing of HPDU prototypes. The DOE’s Office of Nuclear Energy will oversee compliance with the Nuclear Regulatory Commission’s (NRC) safety standards, ensuring that the units meet all licensing requirements before they enter commercial service.

For the U.S. nuclear industry, the HPDU contract is a concrete step toward a safer, cleaner, and more self‑sufficient energy future. By combining advanced engineering with a robust domestic manufacturing base, the DOE and BWX Technologies are setting the stage for a new era of nuclear power that can help the country meet its climate goals while safeguarding national security.