To accomplish a further qualitative ramp in novel generation fuel development and to provide for the compatibility of electric power production we suggest to replace the container design fuel rod, the possibilities of which is practically exhausted, to dispersion type fuel elements (high uranium content fuel, U-Mo, U-Nb-Zr, U3Si with Zr alloy matrix). The primary advantages of novel fuel are high uranium content (more than 15-50% in comparison with the standard UO2 pelletized fuel rod), low temperature of fuel (<500 degrees C, cold fuel), the extension of burn-up (100 MW d/kgU) and serviceability under transient conditions. As a result - the increase of economic efficiency and lower cost of electrical power to be supplied to customer. The feasibility is demonstrated on the novel METMET fuel base to use combined U(Th)-PuO2 fuel (an analog of MOX) fabricated by environmentally clean technology with improved fuel characteristics, which lead to nuclear fuel cycle closing. Novel approach to reprocessing of combined fuel is demonstrated, which allows to separate fissile material without chemical processes, with repeated use in CANDU or PWR reactors, which simplifies the closing of the fuel cycle. (C) 2010 Elsevier Ltd. All rights reserved.