Wyoming has a shot not only at becoming one of the nation’s leading uranium suppliers, but it may yet capture some, or even all, of the manufacturing processes associated with turning uranium ore into nuclear fuel rods. That’s called a “value chain” in industry lingo, and it’s worth multiple millions, if not billions, of dollars if Wyoming is successful.
The topic was a point of discussion at the Wyoming Energy Authority’s Next Frontier Energy Summit in Laramie, alongside an announcement that Uranium Energy Corp. (UEC), which has mining operations in Wyoming, will be working with Radiant Energy to develop that full nuclear power value chain in the United States.
The announcement has enormous implications for the nation, from the standpoint of both economics and national security. But what is even more incredible is that Wyoming is one of two states on the radar of these two companies, both of which had representatives at Wyoming Energy Authority’s energy summit today.
Uranium Energy Corporation Executive Vice President Scott Melbye told Cowboy State Daily Wednesday morning that as he sees it, conditions in the Cowboy State are right, both politically and commercially, to at least explore the possibility of bringing nuclear fuel manufacturing toWyoming.
Melbye would know. In addition to his position with UEC, he is also head of the Uranium Producers of America, which gives him a birds-eye view of the entire sector.
“There are lots of good reasons why it should happen in Wyoming,” Melbye said. “The conditions are right both commercially and politically. But we’ll have to see how it kind of evolves.”
Wyoming has healthy competition in this race, Melbye said.
Texas, too, has announced its own intentions of being a leader in the nuclear power sector, and its legislature has already begun designating funding toward that aim.
Christiansen Ranch is where Uranium Energy Corp. performs its mining operation. The water solution that collects the uranium from the wells at Christiansen Ranch is attached to ion exchange resin, or tiny plastic-like beads, at the satellite plant. The beads are then transported by tank trucks to the Irigaray central processing plant, located about 15 miles away. (Courtesy Uranium Energy Corp.) 
Uranium Energy Corp. has hit a milestone, producing its first batch of Wyoming yellowcake uranium. It’s a huge step for the company as it ramps up to 8.1 million tons of production capacity in the Cowboy State. Here, crews drill for water at the company's Christensen Ranch project. (Courtesy Uranium Energy Corp.) 
Inside the Christiansen Ranch facility where Uranium Energy Corp. collects a water solution with uranium deposits that have been pumped from nearby wells at Christiansen Ranch. The water solution is attached to ion exchange resin, or tiny plastic-like beads, at the satellite plant. (Courtesy Uranium Energy Corp.)
Wyoming Ties Already
UEC’s announcement today with Radiant Energy to build the “full nuclear power value chain in America” doesn’t specifically mention Wyoming.
But UEC is among three companies that have announced or begun actively working to mine uranium in Wyoming and, with its recent acquisition of global mining company Rio Tinto’s uranium assets in Wyoming, it has become the nation’s largest uranium producer.
In March, UEC also announced that it had already produced its first batch of yellowcake at its Christensen Ranch project, which is located in the Powder River Basin of northeast Wyoming.
UEC also has a memorandum of understanding with TerraPower to potentially supply that plant with Wyoming uranium. It’s one of many deals the Bill Gates backed company has struck with various companies, as it builds out the nation’s first commercial Natrium reactor, which will use sodium salts as a coolant.
While Wyoming is becoming a crowded field when it comes to uranium miners, UEC has a huge advantage over most — prior producing assets in the state.
In all, UEC has a couple dozen sites available in Wyoming, not including those recently acquired Rio Tinto assets. That acquisition included one of the nation’s only fully licensed uranium mills.
That’s allowed UEC to quickly activate in response to spiking uranium prices. Uranium was trading for $106 per pound in January. They’ve come down a little since then, with prices trending around $70 per pound on the spot market Wednesday.
It’s A Moonshot
More value-added industries have long been in the crosshairs for the Cowboy State’s economic development leaders. The state is so often mining raw materials that get processed and turned into products elsewhere. The products then return to the state at much higher prices.
Wyoming Mining Association Executive Director Travis Deti is among those who have long sought to diversify Wyoming’s manufacturing sector, by finding ways to create products from the state’s raw materials.
The economic payday that comes from turning Wyoming’s raw materials into products is one way to “add value” to its mining industry, as well as make the most of its natural resources.
But it’s often easier to say than do, and Deti sees it as something of a “moonshot” when it comes to uranium.
“The state of Wyoming has, for the last few years, been trying to pursue this idea,” he said. “Let’s mine the ore here, let’s get it converted and enriched in Wyoming.”
But, like Melbye, he recognizes it might be a “heavy lift.”
Conversion Is The Hard Part
Conversion of the uranium would be the most problematic step, as Melbye sees it. That’s the step where enriched uranium is turned into a gas, then changed into uranium dioxide.
The resulting powder is then pressed into fuel pellets, which are heated to form a hard, ceramic-like material. That is what’s ultimately used to make fuel rods for nuclear power facilities.
Aside from conversion, though, capturing any one part of the overall manufacturing process would be worth multiple millions in state tax revenues, without even considering the economic ripple effects that the manufacturing jobs for such an industry would bring to the state.
“It can be a real boost for communities,” Melbye said. “And that’s exciting, and you see that in your federal delegation, and you see it in Gov. Gordon and the legislature here, which just really seems to want to transition things to that next level.”
It will take people coming to Wyoming, as well as investment, Melbye said.
“It’s early stages right now,” he said. “So, nothing to announce at this point for next steps from UEC. But we are seeing good things happening.”
Deti meanwhile, said regardless of whether the state captures all or just some portion of the manufacturing value chain for uranium, it’s still exciting that Wyoming is at the “epicenter” of the re-emerging nuclear energy field.
“At the end of the day, what I’m most concerned about is production in Wyoming,” he said. “That means revenue for the state and our communities, and it means jobs.”
The micro-nuclear plants Radiant Industries wants to build will weigh 60 tons, but be small enough to be transported by semitrailer or air. They'll produce 1 megawatt of power, enough for industrial use or to power a 750-home development. (Radiant Industries Inc.) 
An illustration showing what would be inside the 10-foot high, 10-foot wide and 30-foot long micro-nuclear plant Radiant Industries wants to build, possible in Wyoming. (Radiant Industries Inc.)
Emerging Energy Demand At Heart Of Uranium Drive
Part of the driving force for uranium right now is the emerging demand for power expected fromdata and artificial intelligence (AI) centers.
An AI query takes about 10 times more power than a typical Google search query, according to analysts in the data/AI sector. Many of them expect building out AI will force a significant jump in electricity.
This has many companies giving nuclear power a serious look, including the Bill Gates-backed TerraPower nuclear plant that’s being built in Kemmerer. Construction on the non-nuclear portion of that plant is just barely under way, but TerraPower has already announced plans for more plants elsewhere in the world.
TerraPower has told Cowboy State Daily previously it is aiming to build the next generation ofnuclear power plants. The sodium-cooled fast reactor, which allows for higher operating temperatures, will be much more efficient and safer than traditional water-cooled reactors, the company says, with a design that takes advantage of things like gravity and convection to both enhance safety and reduce costs.
National Security Playing A Role As Well
Up until now, America has had 54 nuclear power plants producing about one-fifth of the nation’s electricity. Most of the uranium for that power has been imported from foreign countries, at 99%, and about half of that came from countries like Russia and Kazakhstan.
Rising political tensions with those countries have led the United States to ban uranium imports from Russia, in particular, and to instead prioritize uranium production in the United States.
“We can’t forget that it’s not just electricity,” Melbye said. “It’s submarines and its aircraft carriers, too. So, when they try to predatory price to drive American industry out of business, they know what they’re doing. They’re trying to damage our national security as well.”
Nuclear power, Melbye added, just makes sense for the future. It’s a non-interruptible power source, and, done right, he believes it will also be clean, as well as abundant and affordable.
That’s one of the reasons he’s excited about the recent partnership with Radiant Energy, which seeks to ensure that the entire nuclear power chain, from mining uranium to manufacture of fuel rods, is not just built somewhere in America but is robust and globally competitive.
“These are former SpaceX people (at Radiant), and they literally designed rockets to blast off into space,” Melbye said. “Now they’re turning their attention to these portable micro reactors for earth, and Mars at some point. What they’re doing is just incredible.”
Renée Jean can be reached at renee@cowboystatedaily.com.
