The UK will build the first advanced nuclear fuel facility in Europe to establish an energy supply chain that is not reliant on Russia, the Government has said.
Prime Minister Rishi Sunak said it was essential for the UK to build a uranium enrichment plant to "prise Putin's blood-soaked hands off Europe's energy market."
His comments come as the Government announced it was awarding £196 million ($245 million) to Urenco to build a uranium enrichment facility at Capenhurst, Cheshire, that will produce high-assay low enriched uranium (HALEU) fuel by 2031 for export or use domestically.
The Government said it would support 400 highly skilled jobs, power the UK's future nuclear power stations and ensure other countries are not reliant on Russia for advanced nuclear fuel, a market which it currently dominates.
Ministers said it was part of efforts to improve energy security and isolate Moscow from energy markets, following moves to stop imports of Russian oil and gas following the illegal invasion of Ukraine.
Mr Sunak said: "Building our own uranium enrichment plant is essential if we want to prise Putin's blood-soaked hands off Europe's energy market.
"Russia has been the sole provider of this powerful nuclear fuel for too long and this marks the latest step in pushing him out of the energy market entirely.
"The wider future of British nuclear remains a critical national endeavour – guaranteeing nuclear and energy security, and reducing energy bills for Brits."
Secretary of State for Energy Security and Net Zero Claire Coutinho said: "Backing Urenco to build a uranium enrichment plant here in the UK will mean we are the first European nation outside Russia to produce advanced nuclear fuel.
"This will support hundreds of new jobs, bring investment for the people in Cheshire and is a huge win for energy security at home and abroad."
Officials said the fuel was needed to power new advanced modular reactors which they say will be key to meeting ambitions to quadruple the UK's nuclear capacity by 2050, and it would end Russia's position as the only commercial producer of HALEU.
The funding is part of the £300 million programme for HALEU announced in January, and Urenco, which is part-owned by the Government, will co-fund the facility.
Under the plans the facility will have the capacity to produce up to 10 tonnes of the fuel per year by 2031, which when fabricated into fuel could contain as much energy as more than one million tonnes of coal, the Department for Energy Security and Net Zero said.
