The National Nuclear Security Administration announced steps Tuesday to provide 220 metric tons of low-enriched uranium fuel that will be stored to support clients of Savannah River Site's $4.86 billion mixed oxide fuel project.

The MOX plant, scheduled to open in 2016, will help dispose of surplus plutonium from dismantled nuclear weapons by blending small amounts of plutonium with traditional fuels for commercial nuclear reactors.

To make the program more attractive, the U.S. Energy Department has agreed to set aside a large amount of enriched uranium to ensure clients have standard fuel available if MOX production is delayed.

Under terms of a $209 million contract announced Tuesday, the 220 metric tons of fuel will be made by blending down 12.1 metric tons of highly enriched uranium.

The contract was awarded to Wes- Dyne International, a division of Westinghouse Electric Co.; and Nuclear Fuel Services Inc., a subsidiary of Babcock and Wilcox Co. The work will be done at the Nuclear Fuel Services facility in Erwin, Tenn., according to a statement from the nuclear agency.

The low-enriched uranium will have a market value of more than $400 million, and its production should be completed by 2012, the agency said.

The contractors will receive a fraction of the material produced, with the rest being stored.

Both the MOX program and the blend-down of highly enriched uranium into commercial-grade fuels are part of a nonproliferation program designed to reduce the nation's stockpile of nuclear weapons and related materials.

Duke Energy, which had signed an agreement to use MOX fuel but allowed the contract to lapse last fall, is continuing discussions with DOE about using the fuel.

The Tennessee Valley Authority also is involved in negotiations.

Reach Rob Pavey at 868-1222, ext. 119, or rob.pavey@augustachronicle.com.