WASHINGTON, Oct 8 (Reuters) - The U.S. has awarded six

companies contracts to help process a special uranium fuel meant

for a new generation of reactors that could be built in coming

years, the Energy Department said on Tuesday.

Russia is currently the only country that makes the

high-assay low-enriched uranium fuel, or HALEU, in commercial

volumes.

The companies that won the contracts and aim to de-convert

HALEU are Centrus, the U.S. division of France's

state-owned nuclear fuel company Orano, GE Vernova ( GEV ), BWXT

, French firm Framatome, and Westinghouse.

Deconversion turns gaseous uranium into oxide or metal forms

to be made into fuel for reactors. HALEU is uranium enriched to

between 5% and 20%, which backers say has the potential to make

new high-tech reactors more efficient.

Uranium fuel used in today's reactors is enriched to about

5%.

The administration of President Joe Biden believes nuclear

power, which generates virtually emissions-free electricity, is

critical in fighting climate change and to meet rising power

demand from artificial intelligence and other consumers.

"Boosting our domestic uranium supply won't just advance

President Biden's historic climate agenda, but also increase

America's energy security, create good-paying union jobs, and

strengthen our economic competitiveness," Ali Zaidi, the

national climate adviser, said in a statement.

All contracts will last for up to 10 years. Each company

will get a minimum contract of $2 million, with up to $800

million available for the services, subject to the availability

of appropriations, the Energy Department said.

Critics of HALEU, which has a higher fissile content, say it

is a weapons risk if it gets into the wrong hands and recommend

limiting its enrichment to between 10% and 12% for safety.

"This award is a critical piece of the puzzle in building an

advanced nuclear fuel supply chain to support the next

generation of reactors," said Amir Vexler, president and CEO of

Centrus, which plans to make commercial amounts of HALEU at a

plant in Ohio.