In a significant development for India's energy security and its civil nuclear ambitions, a second American company in nearly two decades has secured a crucial export license to sell advanced nuclear technology to India. This partnership paves the way for thorium, a domestically abundant mineral, to emerge as a viable alternative to imported uranium for powering nuclear reactors.
Unlocking Thorium: The New Frontier in Nuclear Fuel
Chicago-based Clean Core Thorium Energy (CCTE) has obtained the export license from the US Department of Energy. The firm will now collaborate with India's largest power utility, NTPC Ltd, to develop and deploy thorium-based nuclear fuel. This strategic move is pivotal for a nation like India, which possesses modest uranium reserves but is home to one of the world's largest deposits of thorium.
The core objective is to integrate thorium into India's existing fleet of Pressurised Heavy Water Reactors (PHWRs). The fuel developed by CCTE, known as ANEEL (Advanced Nuclear Energy for Enriched Life), is a blend of thorium and a concentrated form of uranium called HALEU (high-assay low-enriched uranium). A key advantage is that this fuel can be shipped to India and loaded directly into operational PHWRs without major reactor modifications.
Why Thorium is a Game-Changer for India
Thorium's significance has been recognized by Indian policymakers since the 1950s. As a radioactive metallic element, it offers several advantages over traditional uranium:
- Abundant Domestic Reserves: India's thorium deposits reduce reliance on imported nuclear fuel.
- Reduced Radioactive Waste: It produces lesser amounts of long-lived radioactive waste.
- Lower Proliferation Risk: The fuel cycle presents a lower risk of nuclear weapons proliferation.
However, thorium is not naturally fissile like uranium-235. It is classified as fertile, meaning it can absorb neutrons and transmute into the fissile isotope uranium-233, which then splits to release energy. This characteristic is central to India's long-term nuclear strategy.
Accelerating India's Three-Stage Nuclear Programme
This new partnership has the potential to fast-track the final phase of India's three-stage nuclear power programme. Traditionally, the programme was designed as a sequential process:
- Stage 1: Utilize natural uranium in PHWRs to produce electricity and plutonium-239 as a byproduct.
- Stage 2: Use plutonium in Fast Breeder Reactors (FBRs) to produce more fuel and convert thorium into uranium-233.
- Stage 3: Establish reactors running on the Thorium-Uranium-233 cycle for sustainable, long-term energy security.
The deployment of ANEEL fuel in existing PHWRs could effectively allow India to launch aspects of the third (thorium) stage earlier, without waiting for the full build-up of second-stage FBR capacity. PHWRs are particularly suited for thorium because heavy water, used as a moderator, absorbs fewer neutrons, making the fission process more efficient.
The SHANTI Act: A Supportive Legal Framework
This technological leap is bolstered by recent legislative changes. In December 2025, the Indian Parliament passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025.
This landmark law overhauls the country's nuclear governance by replacing the Atomic Energy Act of 1962 and the Civil Liability for Nuclear Damage Act of 2010. Crucially, it opens the door for public and private sector participation in setting up nuclear power plants and related fuel cycle activities, which were previously restricted to government entities. This aligns India with global nuclear commerce norms and facilitates partnerships like the one between CCTE and NTPC.
With over 45 PHWRs operating globally—19 of them in India—the successful integration of thorium fuel could redefine the country's energy landscape, turning its vast thorium reserves into a cornerstone of a secure and self-reliant nuclear energy future.
