L&T steps up its nuclear play, signs MoU with US fuel firm 

By signing an MoU with Clean Core Thorium Energy (CCTE), a US company set up by an Indian, which has developed a new, thorium-based fuel for nuclear energy, L&T has indicated its desire to step up its play in the unfolding nuclear renaissance, particularly in the area of small modular reactors (SMRs). 

In a press release, L&T said the MoU was “to collaborate on providing efficient solutions in clean energy through CCTE’s patented ANEEL fuel.” But the subtle message in the sentence is revealed by the word “globally”. 

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L&T is no stranger to the nuclear industry, having manufactured reactors and components. But its ambitions have grown in tandem with the increasing interest worldwide in SMRs. Wholetime Director and President-Energy, Subramanian Sarma, said as much in an interview to businessline last month. He said that SMRs lay “well within L&T’s capabilities” and that the company was “speaking with potential technology suppliers and exploring possibilities for tie-ups.” 

The tie-up with CCTE is significant because it brings a certain complementarity to L&T’s capabilities by bringing in the crucial aspect of fuel. CCTE has been set up in the US by Mehul Shah, a Gujarati businessman. Lakshmi Narayanan, former CEO of Cognizant; Dr Anil Kakodkar, former Chairman of the Atomic Energy Commission; and M K Narayanan, former National Security Adviser are among the people closely associated with CCTE. 

The company has developed a fuel it calls ANEEL or Advanced Nuclear Energy for Enriched Life. ANEEL is a combination of high-enriched Uranium (anywhere between 5 and under 20 per cent) and Thorium. The 5-20 per cent enriched uranium is called ‘High Assay Low Enriched Uranium or HALEU — the word ‘low’ is only to indicate that the enrichment is lesser than weapons grade. 

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The ANEEL fuel, which is undergoing irradiation tests at the Idaho National Laboratories, USA, can fire up India’s nuclear programme by enabling the use of Thorium, which is abundantly available in the country. ANEEL also ends up as waste in much smaller quantities, and importantly, not weapons grade; it also offers several other technical advantages. Furthermore, it can be used straightaway in India’s nuclear workhorse reactors, the Pressurised Heavy Water Reactors – 20 of India’s 24 reactors are PHWRs. 

India is the only country that has a fleet of operating small reactors. The design can be tweaked to make SMRs, as they are understood today. This is the Bharat Small Reactors that the Finance Minister referred to in her Budget speech. 

Many global corporate giants, including Amazon and Google, have said they would invest in nuclear power to energise their data centres, many of which would be power-hungry hyperscales. India has ambitions to export Indian BSRs, which are spruced up 220 MW PHWRs. L&T can manufacture and offer them abroad, but the buyers would typically want a package that would include fuel. Hence the tie-up with CCTE. 

L&T will help CCTE in establishing cost effective supply chain for ANEEL fuel fabrication and to liason with the Department of Atomic Energy to conduct demonstration irradiation tests (final test before commercial deployment) in an Indian pressurised heavy-water reactor (PHWR), said Anil V Parab, Whole-Time Director and Senior Executive Vice President (Heavy Engineering & L&T Valves).

The current legal framework in India does not permit private industry participation in nuclear fuel fabrication. In case Indian laws do not change in the foreseeable future, then L&T will explore opportunities in other countries, he told businessline.