The fuel rod performance and neutronics of enhanced thermal conductivity oxide (ECO) nuclear fuel with BeO have been compared to those of standard UO2 fuel. The standards of comparison were that the ECO fuel should have the same infinite neutron-multiplication factor kinf at end of life and provide the same energy extraction per fuel assembly over its lifetime. The BeO displaces some uranium, so equivalence with standard UO2 fuel was obtained by increasing the burnup and slightly increasing the enrichment. The COPERNIC fuel rod performance code was adapted to account for the effect of BeO on thermal properties. The materials considered were standard UO2, UO2 with 4.0 vol.% BeO, and UO2 with 9.6 vol.% BeO. The smaller amount of BeO was assumed to provide increases in thermal conductivity of 0, 5, or 10%, whereas the larger amount was assumed to provide an increase of 50%. A significant improvement in performance was seen, as evidenced by reduced temperatures, internal rod pressures, and fission gas release, even with modest (5–10%) increases in thermal conductivity. The benefits increased monotonically with increasing thermal conductivity. Improvements in LOCA initialization performance were also seen. A neutronic calculation considered a transition from standard UO2 fuel to ECO fuel. The calculation indicated that only a small increase in enrichment is required to maintain the kinf at end of life. The smallness of the change was attributed to the neutron-multiplication reaction of Be with fast neutrons and the moderating effect of BeO. Adoption of ECO fuel was predicted to provide a net reduction in uranium cost. Requirements for industrial hygiene were found to be comparable to those for processing of UO2.