# Is TRISO-X's ORNL Extension the Most Important HALEU Fuel Deal of 2026?

A 30-month agreement extension between TRISO-X and Oak Ridge National Laboratory (ORNL), signed this week, keeps the most advanced [High-Assay Low-Enriched Uranium](https://smrintel.com/glossary/haleu) fuel fabrication program in the US on track for commercial production — and signals that [X-energy](https://smrintel.com/companies/x-energy)'s fuel subsidiary is not yet ready to cut its national laboratory umbilical cord.

The newly extended Cooperative Research Development Agreement (CRADA) builds on a relationship that began in 2016 — nearly a decade of joint process development. The immediate objective is scaling TRISO particle manufacturing to commercial yields and refining characterization methods inside ORNL's specialist facilities, where TRISO-X currently operates a pilot fabrication line. Commercial fuel fabrication at TX-1, the first purpose-built US commercial TRISO facility, is projected to begin in early 2028. The TX-1 facility is currently under construction at the Horizon Center Industrial Park in Oak Ridge, Tennessee, with vertical building construction having begun in November 2025.

The regulatory foundation is already in place: in February 2026, the Nuclear Regulatory Commission granted TRISO-X a 40-year Special Nuclear Material Licence — the first-ever NRC Part 70 licence for a commercial HALEU fuel fabrication facility. That licence already covers a planned second facility, TX-2, on the same campus.

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## What the CRADA Extension Actually Covers

The extended CRADA is not a research pivot — it is a manufacturing maturation play. TRISO-X's pilot fabrication line operates inside ORNL and will continue to do so for the 30-month term. The work focuses on three areas per the source: fuel quality and yield optimisation, improved characterization methods, and refined processing streams.

This is consequential because TRISO particle manufacturing is notoriously sensitive to process consistency. Coating layer thickness, kernel density, and PyC microstructure all affect fuel performance at high temperatures — the exact conditions the Xe-100 high-temperature gas-cooled reactor operates under. Yield losses at commercial scale translate directly into fuel cost penalties that flow through to the [LCOE](https://smrintel.com/glossary/lcoe) of every Xe-100 unit.

Joel Duling, President of TRISO-X, framed the extension in supply-chain terms: "Extending this partnership ensures we continue advancing fuel technology that will strengthen America's nuclear fuel supply chain and support the deployment of next-generation reactors." ORNL Director Stephen Streiffer described the collaboration as demonstrating "how national laboratories help accelerate the transition of transformative technologies from research to commercial application."

Neither statement should be read as marketing boilerplate. The US currently has no domestic commercial TRISO fuel supply. TX-1 is the only facility on a credible timeline to change that.

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## The Oak Ridge Campus: Three Facilities, 180 Acres, 1,000 Jobs

The CRADA extension is the least dramatic item in TRISO-X's current development package. The broader Oak Ridge campus plan has evolved into a three-facility layout:

- **TX-1**: Under construction, targeting early 2028 commercial production start. Will exclusively manufacture X-energy's proprietary TRISO-X fuel. First major delivery is earmarked for four Xe-100 SMRs being built at a Dow chemical plant in Seadrift, Texas.
- **TX-2**: A significantly larger fabrication facility, already covered under the February 2026 NRC Part 70 licence. Planned to use TX-1 operational data to implement high-level automation and substantially increase HALEU production capacity. Targeted to create over 1,000 permanent jobs.
- **Dedicated Fuel Fabrication Laboratory**: Focused on commercial fuel innovation, testing, and continuous process improvement for TRISO manufacturing streams.

TRISO-X recently acquired additional land, expanding the campus footprint to over 180 acres. The expanded campus plan is supported by an $11 million grant from Tennessee's Nuclear Energy Supply Chain Investment Fund. When fully built out — including the existing ORNL pilot line — the combined campus is described as capable of producing enough TRISO fuel to support up to 55 Xe-100 SMRs.

That figure deserves scrutiny. Each Xe-100 is an 80 MWe high-temperature gas-cooled reactor, so 55 units represents roughly 4,400 MWe of nameplate capacity. Whether TX-1 and TX-2 together can actually reach that throughput will depend on TX-1's yield data, HALEU feedstock availability upstream, and whether TX-2 financing closes on schedule. None of those variables are resolved.

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## Why This Matters for the Broader HALEU Supply Chain

The TRISO-X programme sits at a structural chokepoint for US advanced reactor deployment. Multiple SMR developers — not just X-energy — are designing reactors that require HALEU fuel at enrichment levels above the 5% ceiling of conventional light-water reactor fuel. Today, domestic HALEU production at commercial scale does not exist.

The NRC's February 2026 Part 70 licence was a genuine regulatory milestone: the first time the commission has licenced a commercial HALEU fuel fabrication facility. Combined with the ORNL CRADA extension, it creates a clearer line of sight to 2028 than the industry had twelve months ago. The [First of a Kind (FOAK)](https://smrintel.com/glossary/foak) risk remains substantial — TX-1 is a greenfield commercial facility scaling from a pilot line, and the Dow-Seadrift Xe-100 deployment is itself the FOAK build for that reactor design.

For uranium market analysts, TX-2's automation ambitions and 1,000-job projection suggest X-energy is planning for a fuel business that serves the broader advanced reactor market, not just its own Xe-100 backlog. Whether that becomes a viable independent revenue stream — or remains a cost centre supporting Xe-100 deployments — will hinge on how many other HALEU-dependent reactor designs reach commercial offtake agreements before TX-2 comes online.

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## Key Takeaways

- TRISO-X signed a **30-month CRADA extension** with ORNL, extending a partnership that began in 2016.
- The pilot fabrication line continues to operate inside ORNL facilities, focused on yield optimisation, characterisation, and processing improvement.
- TX-1, the first US purpose-built commercial TRISO facility, is under construction in Oak Ridge, Tennessee, with vertical construction beginning **November 2025** and commercial production targeted for **early 2028**.
- In **February 2026**, the NRC issued TRISO-X a **40-year Part 70 Special Nuclear Material Licence** — the first ever for a commercial HALEU fuel fabrication facility.
- The Oak Ridge campus has grown to over **180 acres** and is planned for three facilities: TX-1, TX-2, and a dedicated fuel fabrication laboratory.
- The full campus is described as capable of supporting up to **55 Xe-100 SMRs** at scale.
- TX-1's first major delivery is committed to four Xe-100 units being built for Dow at **Seadrift, Texas**.
- The campus plan is supported by an **$11 million grant** from Tennessee's Nuclear Energy Supply Chain Investment Fund.

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## Frequently Asked Questions

**What is the TRISO-X and ORNL CRADA extension?**
TRISO-X, a subsidiary of X-energy, has signed a 30-month extension of its Cooperative Research Development Agreement with Oak Ridge National Laboratory. The agreement allows TRISO-X to continue operating its pilot TRISO fuel fabrication line inside ORNL to optimise manufacturing yields and characterisation methods ahead of commercial production at its TX-1 facility.

**When will TX-1 begin commercial TRISO fuel production?**
Commercial fuel fabrication at TX-1 is projected to begin in early 2028, according to the source material. Vertical building construction at the Horizon Center Industrial Park in Oak Ridge, Tennessee began in November 2025.

**What is the NRC Part 70 licence that TRISO-X received?**
In February 2026, the Nuclear Regulatory Commission granted TRISO-X a 40-year Special Nuclear Material Licence under 10 CFR Part 70 — the first NRC Part 70 licence ever issued for a commercial HALEU fuel fabrication facility. The licence covers both TX-1 and the planned TX-2 facility on the same Oak Ridge campus.

**Who will receive the first TRISO fuel from TX-1?**
TX-1's first major delivery is planned to supply four of X-energy's Xe-100 small modular reactors being built at a Dow chemical plant in Seadrift, Texas.

**How large is the planned Oak Ridge TRISO fuel campus?**
TRISO-X recently acquired additional land expanding the campus to over 180 acres. The three-facility layout — TX-1, TX-2, and a dedicated fuel fabrication laboratory — is described as capable of producing enough TRISO fuel to support up to 55 Xe-100 SMRs. TX-2 is planned to implement high-level automation and is targeted to create over 1,000 permanent jobs.