Nuclear Startup Secures $46M to Build Massive Reactors Using Existing Designs

The Nuclear Company secures $46.3 million to develop large-scale reactor sites. The Nuclear Company, a startup founded in 2023, recently announced a significant Series A funding round, raising $46.3 million out of a targeted $51.3 million. The financing comes from investors such as CIV, Goldcrest Capital, MCJ Collective, True Ventures, and Wonder Ventures. Led by former AppHarvest CEO Jonathan Webb, Arcadia CEO Kiran Bhatraju, and CIV CEO Patrick Maloney, the company is pursuing a novel strategy in the nuclear energy sector. Rather than innovating new reactor designs or manufacturing smaller units, The Nuclear Company aims to revive and develop existing reactor sites that already hold the necessary permits and licenses. According to the Nuclear Regulatory Commission, fewer than a dozen sites in the U.S. meet this criteria. Each of these sites can potentially support reactors with over 1 gigawatt of generation capacity, and The Nuclear Company plans to develop a fleet with a total capacity of 6 gigawatts. This funding round is particularly timely as tech companies and utilities grapple with rising demands for power, especially for data centers. The U.S. is projected to see a 16% increase in electricity demand by 2029, driven significantly by the surging consumption of data centers. These facilities are expected to quadruple their electricity usage by the end of the decade, putting additional strain on the grid. To address these challenges, several tech giants are exploring partnerships with nuclear energy firms. Google, for instance, is collaborating with Kairos Power to build 500 megawatts of small modular reactors (SMRs), while Amazon has invested $700 million in X-energy to support its SMR projects. Meta has invited proposals to develop up to 4 gigawatts of generating capacity, and Microsoft is working with Constellation Energy to restart a reactor at the Three Mile Island plant. However, the path forward for nuclear power is fraught with obstacles. One significant hurdle is competition from solar energy. Tech companies and data center operators are increasingly turning to solar farms, often coupled with large battery storage systems, to meet their power needs. Solar technology is cost-effective, and new projects can be developed within approximately 18 months. Adding to the challenges, nuclear power faces potential financial setbacks. The House Ways and Means Committee recently unveiled a draft reconciliation bill that proposes to eliminate the nuclear power subsidies established under the Inflation Reduction Act. Currently, nuclear power plants can receive tax credits of up to $15 per megawatt-hour. If this bill passes, it could undermine the financial viability of new nuclear projects, including those planned by The Nuclear Company. Despite these challenges, the company remains committed to its long-term vision. Most new nuclear power plants, including those in The Nuclear Company’s development pipeline, are not expected to become operational until the early 2030s. By then, the landscape of energy demand and supply could look very different, making it crucial for the company to stay adaptive and responsive to market changes. Tim De Chant, a senior climate reporter at TechCrunch, covers the energy and environmental sectors extensively. With a PhD in Environmental Science, Policy, and Management from the University of California, Berkeley, and a diverse background in writing for publications like Wired, the Chicago Tribune, Ars Technica, and NOVA Next, De Chant brings a wealth of expertise to the discussion on nuclear energy's future.