U.S. Plans to Repurpose Cold War Plutonium for Power Generation

The U.S. government is moving to potentially repurpose plutonium from dismantled Cold War-era nuclear warheads for use in advanced nuclear reactors. This initiative, proposed by the Trump Administration, could make available up to 20 metric tons of plutonium to American power companies, a significant shift considering the U.S. has not utilized plutonium as fuel in commercial nuclear power facilities to date.

Historically, plutonium has been used in the U.S. only for short test runs. The planned initiative would draw from a larger stockpile of 34 metric tons of plutonium, which the U.S. committed to disposing of as part of a 2000 non-proliferation agreement with Russia. According to Reuters, power companies would receive this plutonium at little or no cost, although they would bear all expenses related to the transportation, design, and construction of facilities necessary to process and recycle the material into usable fuel.

Despite the ambitious plans, many analysts and nuclear safety experts remain skeptical about the viability of using this plutonium for advanced nuclear systems. These systems are seen as crucial to meeting the anticipated increase in U.S. electricity demand, particularly driven by the growing needs of AI data centers and the onshoring of manufacturing.

The initiative follows an executive order issued by President Donald Trump in May, which instructed the Secretary of Energy to halt the existing surplus plutonium dilute and dispose program, except for obligations toward South Carolina. The order mandates the establishment of a new program to process surplus plutonium and make it available for industry use, facilitating its conversion into fuel for advanced reactors. A report with recommendations for efficient use of recovered uranium, plutonium, and other materials is expected within 240 days from the order’s date.

The U.S. Department of Energy (DOE) has stated that it is exploring various strategies to bolster domestic supply chains for nuclear fuel, including the potential use of plutonium. However, the department has not confirmed or denied the specifics of the proposed plan.

Experts like Edwin Lyman, a nuclear physicist at the Union of Concerned Scientists, argue that the best option for the excess plutonium is its disposal at the Waste Isolation Pilot Plant (WIPP) in New Mexico. Lyman emphasizes that the excess plutonium is inherently dangerous and advocates for a more secure and cost-effective plan to dilute and dispose of it directly.

Despite these concerns, the Trump Administration’s interest in leveraging dismantled plutonium for energy generation comes amid a surge in demand for reliable and low-carbon electricity. The rise of AI technologies has spurred a global push for small modular reactors, which many believe will be essential in meeting the energy needs of leading technology firms.

In recent developments, major data center operator Equinix has entered into agreements related to advanced nuclear electricity, including power purchase agreements and pre-orders for microreactors intended to power its facilities. Financial analysis from Goldman Sachs suggests that nuclear power will play a significant role in the anticipated energy infrastructure necessary to address the surging demand driven by AI data centers.

Nevertheless, Goldman Sachs cautions that nuclear energy alone will not suffice to meet all energy demands. The future energy mix is expected to include natural gas, alongside renewable energy and battery technologies, to provide a balanced approach to energy generation.

As the situation evolves, the implications of repurposing Cold War plutonium could reshape the landscape of nuclear energy in the United States, prompting both excitement and concern among industry stakeholders and safety advocates alike.