Deuterium is produced for industrial, scientific and military purposes, by starting with ordinary water—a small fraction of which is naturally-occurring heavy water—and then separating out the heavy water by the Girdler sulfide process, distillation, or other methods.
In theory, deuterium for heavy water could be created in a nuclear reactor, but separation from ordinary water is the cheapest bulk production process.
The world's leading supplier of deuterium was Atomic Energy of Canada Limited until 1997, when the last heavy water plant was shut down. Canada uses heavy water as a neutron moderator for the operation of the CANDU reactor design.
Another major producer of heavy water is India. All but one of India's atomic energy plants are pressurised heavy water plants, which use natural (i.e., not enriched) uranium. India has eight heavy water plants, of which seven are in operation. Six plants, of which five are in operation, are based on D–H exchange in ammonia gas. The other two plants extract deuterium from natural water in a process that uses hydrogen sulfide gas at high pressure.
While India is self-sufficient in heavy water for its own use, India also exports reactor-grade heavy water.