From Waste to Wattage: A New Partnership Aims to Close the Nuclear Fuel Loop

JANESVILLE, WI – June 17, 2026 – In a significant move aimed at reshaping the future of nuclear energy, U.S.-based SHINE and European innovator newcleo have announced a strategic partnership to recycle spent nuclear fuel. The collaboration links SHINE’s developing reprocessing technology with newcleo’s advanced reactors, which are specifically designed to run on recycled fuel, heralding a potential shift towards a closed-loop, sustainable nuclear fuel cycle in the United States.

This transatlantic alliance aims to tackle one of the nuclear industry’s most persistent challenges: the ever-growing stockpile of radioactive waste. By transforming this liability into a valuable asset, the two companies hope to not only solve a decades-old environmental problem but also fundamentally alter the economics and public perception of nuclear power.

A Strategic Pivot from Waste to Resource

For over half a century, the U.S. has operated on an “open” nuclear fuel cycle, meaning the used fuel assemblies from its commercial reactors are treated as waste and stored indefinitely. This has resulted in an accumulation of approximately 90,000 metric tons of highly radioactive material, primarily housed at reactor sites across the country, awaiting a permanent disposal solution that has yet to materialize.

The SHINE-newcleo partnership proposes a radical alternative. Wisconsin-based SHINE, a fusion energy company expanding into nuclear technologies, is developing a proliferation-resistant aqueous separation process to extract valuable materials, including uranium and plutonium, from this used fuel. This isn't a new idea, but the company's approach, developed in collaboration with French nuclear giant Orano, is tailored for the modern U.S. regulatory and commercial landscape.

This recovered material would then be supplied to newcleo, which is developing advanced lead-cooled fast reactors (LFRs). These Generation-IV reactors are designed to consume mixed-oxide (MOX) fuel, which can be manufactured from the materials SHINE recovers. The cycle could become even more virtuous, as the partners will also assess how SHINE could recycle the spent fuel from newcleo's own reactors.

“Recycling spent nuclear fuel solves two problems at once. It addresses decades of accumulated waste and removes the fuel supply constraint on expanding the reactor fleet,” said Greg Piefer, founder and CEO of SHINE. “Working with newcleo connects our capabilities directly to reactors designed to run on recycled fuel. That closed fuel cycle effectively makes nuclear energy renewable and fundamentally changes its economics.”

Echoing this sentiment, newcleo founder and CEO Stefano Buono emphasized the collaborative nature required for such an ambitious undertaking. “Closing the fuel cycle will require deep, industry-wide collaboration that brings together expertise from across the nuclear fuel supply chain,” Buono stated. “Today marks an important step in that direction.”

The Business of Breakthroughs: Capitalizing on a Nuclear Renaissance

The timing of this partnership is no coincidence. It arrives amid a powerful resurgence of interest in nuclear energy, driven by mounting pressure for carbon-free power and a renewed focus on energy independence. The U.S. government, in a notable policy shift, is actively fostering this revival through significant funding and legislative support.

Programs like the Department of Energy’s (DOE) Advanced Reactor Demonstration Program (ARDP) and the recently launched Advanced Nuclear Fuel Recycling program are creating a fertile ground for innovation. In fact, SHINE is already participating in a DOE-funded consortium to develop models for commercial recycling facilities. This supportive environment is a key driver for the partnership's decision to jointly pursue federal funding opportunities.

This American enthusiasm stands in stark contrast to the challenges newcleo recently faced in Europe. The company suspended its U.K. program in 2025 after failing to secure adequate government support, pivoting its focus toward more welcoming markets, including the U.S., France, and Slovakia. Newcleo's strategic shift underscores a broader trend of international nuclear innovators looking to the U.S. as the premier destination for developing and deploying next-generation technologies.

To finance its capital-intensive plans, newcleo is pursuing a U.S. public listing through a merger with a special purpose acquisition company, NewHold Investment Corp. III. The deal, expected to close in the second half of 2026, would list newcleo on the Nasdaq under the ticker “NWCL,” providing access to the deep capital markets necessary to build its reactors and fuel fabrication plants.

Navigating the High Hurdles of a Nuclear Future

Despite the powerful vision and favorable political winds, the path forward for SHINE and newcleo is laden with formidable technical, regulatory, and financial challenges. Creating a commercial-scale nuclear fuel recycling industry from scratch is an undertaking of immense complexity.

SHINE's immediate goal is to build a commercial pilot facility capable of processing 100 metric tons of used fuel per year by the early 2030s. While based on proven chemistry used in France for decades, the technology must be adapted, demonstrated at scale, and successfully licensed by the U.S. Nuclear Regulatory Commission (NRC). The company is leveraging its recent experience licensing a medical isotope facility to inform its strategy, but licensing a first-of-its-kind recycling plant will undoubtedly chart new regulatory territory.

Simultaneously, newcleo must prove the viability of its LFR technology. While building on decades of research, lead-cooled reactors present unique material science and engineering challenges, such as managing lead corrosion. The company initiated pre-application engagement with the NRC in March 2026 for both its reactor and an associated MOX fuel facility, a crucial first step in a long and rigorous licensing process.

Beyond the technical and regulatory hurdles, the partnership must also win public trust. The concept of reprocessing and transporting plutonium, even in a proliferation-resistant form, carries historical baggage that requires transparent and robust safety and security protocols. The partners argue that their closed-loop system dramatically reduces the volume and long-term radioactivity of the final waste, a powerful environmental selling point they will need to communicate effectively.

The two companies plan to begin technical scoping this year, with joint federal funding proposals to follow. Their success or failure will not only determine their own fortunes but could also set the course for the entire U.S. nuclear industry for decades to come.