The Nuclear Company Secures $46M To Develop Major Reactor Facilities

The Nuclear Company is embracing a traditional strategy for constructing new nuclear reactors. Instead of creating a brand-new design or focusing on mass production of smaller models, the company plans to build a series of reactors based on proven, existing designs.

Nuclear Startup Secures $46.3 Million in Series A Funding, Eyes $51.3 Million Goal

The startup, which was founded two years ago, revealed its Series A funding round last month, with participation from CIV, Goldcrest Capital, MCJ Collective, True Ventures, and Wonder Ventures. While it initially withheld the fundraising total, TechCrunch has now confirmed through an SEC filing that the company raised $46.3 million out of a targeted $51.3 million for the round.

Three serial entrepreneurs—Jonathan Webb, former CEO of AppHarvest; Kiran Bhatraju, CEO of Arcadia; and Patrick Maloney, CEO of CIV—established The Nuclear Company in 2023. The startup is focusing on locations that already possess the necessary permits or licenses to operate. According to filings with the Nuclear Regulatory Commission for combined operating licenses and early site permits, fewer than a dozen sites meet this criterion.

At the more advanced sites nearing construction, each location has the potential to host reactors generating over 1 gigawatt of power. The Nuclear Company plans to develop a total of 6 gigawatts in its initial fleet of reactors.

Data Centers Driving Surge in U.S. Electricity Consumption

The funding round comes as tech companies and utilities grapple with securing enough electricity to power data centers. According to Grid Strategies, U.S. electricity demand will rise nearly 16% by 2029, after years of relatively flat usage. A major contributor to this surge is the data center industry, which could see its energy consumption quadruple by the decade’s end.

Amid concerns over potential power shortages, tech giants are increasingly partnering with nuclear startups and developers. Google is collaborating with Kairos to deploy 500 megawatts of small modular reactors (SMRs), while Amazon took part in a significant $700 million funding round for X-energy’s SMR initiatives. Meta has requested proposals for up to 4 gigawatts of new generation capacity, and Microsoft is teaming up with Constellation Energy to help restart a reactor at Three Mile Island.

However, nuclear power is encountering several challenges, both anticipated and unforeseen. One expected hurdle is competition from solar energy. Tech firms and data center operators have been actively acquiring capacity from solar farms, often through large-scale agreements. These solar installations are typically coupled with large battery systems to deliver round-the-clock power. The appeal lies in their low cost and relatively quick development timelines, with new projects often completed in about 18 months.

Nuclear Power Faces Financial Setback as Proposed Bill Seeks to End Inflation Reduction Act Subsidies

Nuclear power may soon encounter additional financial challenges. This week, the House Ways and Means Committee released a draft of a reconciliation bill that would eliminate the subsidies for nuclear power that were provided under the Inflation Reduction Act. Currently, nuclear power plants are eligible for tax credits of up to $15 per megawatt-hour.

Most new nuclear power plants, including those planned by The Nuclear Company, are not expected to begin operation until the early 2030s. With projections for the next five years differing significantly, large nuclear plants coming online a decade from now might find themselves facing financial uncertainty.

Read the original article on: TechCrunch

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