Under the $250m extension contract, Westinghouse will continue to design and deliver fuel to APS-operated three reactors at Palo Verde site in Wintersburg, Arizona, US.

The company will also provide transition engineering and licensing required to install the new fuel design.

Westinghouse Americas president Mark Marano said: "This contract extension represents a confidence in Westinghouse not only to continue delivering high-performing fuel, but faith in our ability to develop first-of-a-kind products. I am pleased to continue our relationship with APS and this fuel delivery is one important component of our long-standing relationship."

The Westinghouse next generation fuel (NGF), also known as CE16NGFTM, features advanced cladding material and burnable absorbers, and advances in structural design to enhance the fuel’s efficiency and reliability.

APS executive vice president and chief nuclear officer Randy Edington said: "We proactively make safety and performance improvements regularly; installing the newest Westinghouse CE fuel in our reactors is one reflection of that practice."