January 9, 2026

Meta Signs Nuclear Deals with Oklo, Vistra, and TerraPower ()

Meta has secured long-term agreements with Oklo, Vistra, and TerraPower to support existing nuclear plants and fund advanced reactor projects, supplying carbon-neutral power for AI and data center operations...

October 26, 2024

Nucleation’s Three Year Overview

Nc 3 yr overview image.png

Nucleation Capital Completes its Third Year!

Issues a report on the growing demand, the status of Nucleation Fund I, plans for Fund II and portfolio updates

Nucleation issued its Three Year Report to all Limited Partners (LPs) of the fund in mid-October, following the completion of three full years of investing at the end of Q2-2024.

The report covered the state of the current market, with the recent slate of high-profile power purchase announcements, a review of recent major nuclear purchase announcements by major technology companies, as well as a run-down of key events of the prior three years heralding the current inflection point in the market. Additionally, Nucleation provided its assessment of what is coming down the pipeline for investors in both energy and carbon management demand.

The report further shared more details about Nucleation's plans and strategies for its three year-old evergreen Fund I and for its upcoming, traditional Fund II. Lastly, Nucleation provided detailed and confidential updates on the progress made and current status of each of its twelve Fund I portfolio ventures.

REQUEST A COPY

If you are interested in learning more about either Fund I, our low-cost evergreen fund, now in its fourth year, or our upcoming traditional Fund II, click here to request a copy of our Three Year Report Overview.

October 18, 2024

Amazon goes nuclear . . . !


Amazon has announced a signed agreement with Dominion Energy in Virginia to explore the development and construction of one or more small modular nuclear reactors to use to provide clean power to Amazon Web Services data centers. It is anticipated that Dominion will contract with X-energy to host X-energy's new high-temperature gas reactor at Dominion’s North Anna nuclear power station. This is intended to increase access to clean power for AWS, Amazon’s cloud computing subsidiary, which has escalating energy needs as it expands its services into generative AI. The agreement is also a part of Amazon’s path to net-zero carbon emissions.

Amazon Web Services has agreed to invest more than $500 million into advanced nuclear power, through three related projects, that will result in as much as 600 MW of new power generation at locations from Virginia to Washington state. In the process, Amazon is partnering with Dominion Energy, Energy Northwest and X-Energy to explore the development of an X-energy small modular nuclear reactor, or SMR, near Dominion’s existing North Anna nuclear power station.

Amazon, together with Energy Northwest, a consortium of 29 public utility districts and municipalities across Washington, will help fund the deployment of four reactors developed by X-energy totalling approximately 320 MW of new electricity generation. Additionally, Amazon also is making an equity investment into X-energy as part of an approximately $500 million fundraising round announced today by the nuclear technology company and they've signed a separate memorandum of understanding (MOU) with Dominion Energy “to explore innovative new development structures that would help advance potential [SMR] nuclear development in Virginia.”

[Read more at the sources listed below.]

Sources

UtilityDive: Amazon announces small modular reactor deals with Dominion, X-energy, Energy Northwest, by Brian Martucci, Oct. 16, 2024

CNBC: Amazon goes nuclear, to invest more than $500 million to develop small modular reactors, by Diana Olick, Oct. 16, 2024.

PR Newswire: Dominion Energy and Amazon to explore advancement of Small Modular Reactor (SMR) nuclear development in Virginia, Oct. 16, 2024.

October 15, 2024

Google makes world’s first SMR corporate purchase deal


Google's agreement to purchase energy from advanced nuclear reactors to be built by Kairos Power was, in almost every way, earth-shattering.  This deal puts advanced nuclear on the energy "leaderboard" for the first time and sends an exceptionally powerful message out into the world—that the tech hyperscalers, a group of extremely sophisticated companies committed to decarbonization—are ready to commit large sums to obtain clean and reliable power from advanced nuclear energy providers. This will inform a whole host of other actors and force them to re-assess their energy options.

To better understand Google's reasoning for this agreement, we turn to the blog post written by Michael Terrell, Googles' Senior Director for Energy and Climate. He confirms right away, that Google's decision to sign the "world's first corporate agreement to purchase nuclear energy from multiple small modular reactors" is intended to "accelerate the clean energy transition across the U.S."

Google is building upon a history of pioneering corporate efforts to accelerate clean energy solutions, which started with agreements to purchase renewable electricity over a decade ago. Those purchase agreements have enabled Google to make claims of powering their operations with "renewable" energy but the reality is that for the last decade, Google's power was pulled from the grid like everyone else's and they could not access carbon-free power on a 24/7 basis. This disturbed them, because they knew that their claims were premised on fancy accounting, not reality, and due to the fungibility of electrons, their actual energy streams remained as dirty as eveyone else's.

Google now takes its first true step into truly managing its carbon emissions with this agreement to support Kairos Power's introduction of its advanced nuclear power system.  This is a long-term agreement that enables Kairos to target building multiple initial units by 2030, followed by additional units by 2035.  The agreement will enable the construction of up to 500 MW of 24/7 carbon-free power to a number of communities, which indicates that Google is probably planning to site these new reactors in more than one location, possibly co-located with newly-built data centers being planned to meet growing power demands from AI.

Terrell believes that this agreement, to put Google's purchasing heft in accelerating deployments of the next generation of advanced clean technologies, is important for two reasons:

  1. The grid needs new electricity sources to support AI technologies that are powering major scientific advances, improving services for businesses and customers, and driving national competitiveness and economic growth. This agreement helps accelerate a new technology to meet energy needs cleanly and reliably, and unlock the full potential of AI for everyone.
  2. Nuclear solutions offer a clean, round-the-clock power source that can help us reliably meet electricity demands with carbon-free energy every hour of every day. Advancing these power sources in close partnership with supportive local communities will rapidly drive the decarbonization of electricity grids around the world.

In other words, there is growing 24/7 energy demand and growing urgency to eliminate emissions and renewables are not up to the job. Terrell doesn't say that directly but it seems fairly clear that they recognize that they cannot run a rapidly growing 24/7 data center business with intermittent energy sources, even with fancy accounting.

While we don't get a lot of the financial details of this new agreement, whether they will be investing in Kairos or just helping to finance Kairos' journey through their first of a kind (F.O.A.K) build and out into their "nth of a kind" (N.O.A.K) build, Google's alignment of it efforts to develop and commercialize advanced clean electricity technologies behind Kairos is a formidable combination that promises to help Kairos overcome the remaining barriers for commercialization of its technology.

(From the DOE's Advanced Nuclear LiftOff Report.)

Google's deal with Kairos provides what many experts and the DOE see as a necessary ingredient to break the chicken and egg conundrum:  an orderbook of reactors. This speeds up Kairos' ability to produce its novel reactors in the quantity necessary to lower costs and bring Kairos Power’s technology to market more quickly. Without out, FOAK pricing can be prohibitive to getting orders. Google, with virtually no other options, has bravely stepped to help scale what is likely to be the first of many advanced nuclear technologies coming to market.

This announcement further inflects the advanced nuclear sector and confirms what we have known all along: both traditional and next-generation nuclear technologies are necessary for us to reach 100% clean power and we'll need a very large and very diverse quantity of new reactors being produced and deployed at scale to fully meet all types of growing energy needs and to shift all demand from fossil fuels to clean energy sources.

Resources
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Goggle Blog: New nuclear clean energy agreement with Kairos Power, by Michael Terrell, Oct. 14, 2024

Google Sustainability Report: The Corporate Role in Accelerating Advanced Clean Electricity Technologies, Sept. 2023.

Department of Energy:  Pathways to Commercial Liftoff: Advanced Nuclear Commercial LiftOff

April 2, 2024

Twelve’s Transformational Mission: Obsoleting Fossil Fuels

Nucleation announces its investment in Twelve's Series C through its Fund I.

Twelve's tagline, "a world made from air," seems quite incredible at face value.  The average person may not realize that gaseous components of air, like CO2 and H2O molecules, contain the ingredients required for hydrocarbons, namely carbon and hydrogen. Twelve, however, has managed to develop some special technology that finally makes it possible to take CO2 and H2O, run them through an efficient electrolysis process, and get CO and H, which can be blended to create synthetic hydrocarbons that are exact substitutes for kerosene and naptha, which until now, have been produced from oil that has been extracted from the ground.

We all know that burning oil, coal or gas and releasing CO2 emissions is what is causing our atmosphere to warm. With every gallon of gasoline burned, we're releasing 2.7 times that volumetric amount in pollution, most of which converts to gas that is invisible to the eye but which traps solar radiation and warms up in the atmosphere.

Twelve's technology, however, utilizes CO2 that is "captured" rather than released into the atmosphere, and it blends that with hydrogen extracted from water using an electrochemical process powered by clean energy, to create a carbon-neutral high-octane fuel that is chemical identical to kerosene, also called Jet A.  Twelve's sustainable aviation fuel (SAF), which it calls E-Jet, can be substituted as a way to enable the aviation industry to achieve carbon-neutrality between now and 2050.

The key for Twelve, which uses a "power-to-liquid" pathway to create its carbon-neutral E-Jet, is to be able to power this production without releasing more carbon dioxide in the process. To do so, Twelve needs to have access to abundant, always-on, affordable and clean energy. Which explains why Twelve opted to build its first production plant not in California, where the power mix is primarily natural gas, but in Washington State, where Twelve can get access to hydropower. 

With that source of energy, Twelve's fuel, once deliveries begin later this year, can help reduce aviation emissions by as much as 90%. In the future, Twelve's growing E-Jet production business will benefit from being able to cost-reduce by being sited near sources of supply for its E-Jet, captured CO2 and airports where its customers refuel. We suspect that, in the future, being able to site a small advanced nuclear power plant near where Twelve's factories want to be, could give them yet another competitive advantage.

Meanwhile, the airline industry's projected demand for SAF far exceeds all known production from all sources, so in the short term, Twelve is able to sell its E-Jet fuel at a premium, while also qualifying for a myriad of local, state and federal incentives aimed at helping businesses like Twelve scale up production capabilities in combination with non-dilutive grants and sales of Scope 3 carbon credits.

Twelve's current Series C financing is providing it with the capital it needs to finish manufacturing its initial stock of reactors and complete the construction of its first commercial-scale fuel production plant in Washington State, where Twelve has a firm contract for hydropower sufficient to meet its production needs for now. Twelve is on track to begin this production and begin delivering initial quantities of E-Jet to Alaska Airlines for use on its flights later this year.

Nucleation is thrilled to have co-invested in Twelve's Series C round together with DCVC, Capricorn (Jeff Skoll), TPG (private equity), Pulse Fund and join many other investors, which include Microsoft, Shopify, Alaska Airlines and the US Air Force. In 2023, Twelve was name one of the Climate Tech Companies to Watch by the MIT Technology Review and was featured in this Bloomberg Green article, Microsoft-Backed Clean Jet Fuel Startup Fires Up New CO2 Converter, a Bloomberg Originals Episode: Dusk or Dawn and other press.

In addition to SAFs, Twelve's reactors can produce a range of carbon-neutral synthetic hydrocarbons, especially e-naphtha, that can be sold into other markets as clean ingredients to enable consumer product companies to make a wide array of carbon-neutral manufactured plastics items, reducing their carbon footprint by over 90%. Twelve has already successfully tested their use through partnerships with Mercedes-Benz (for use in car parts), Procter and Gamble (ingredients for Tide) and Pangaia (for the world's first CO2-made sunglass lenses, in a production run that sold out in under two hours).

Soon after we invested, Twelve was in London to jointly announce a 10+ year, 1 billion liter off-take agreement with the International Airlines Group (IAG), the world's largest publicly traded airline group, which was immediately recognized as the "SAF deal of the year." Twelve's deliveries under that contract will help decarbonize five European airlines, which include British Airways, Iberia and Aer Lingus, potentially as soon as 2025. This delivery contract is a testament both to the level of demand and to customer confidence in Twelve and its final product. It also signals that funding development of future decarbonization technologies can fundamentally transform our energy future and begin to reduce our reliance on fossil fuels.

[Note: Investor access to Twelve is currently available through Nucleation's syndicate SPV. If you join our syndicate, we will forward the deal details to you.]

March 24, 2024

Tech companies collaborating to accelerate advanced nuclear

Google has partnered with Microsoft and Nucor to accelerate advanced clean electricity technologies through a new "demand aggregation model" to help bring "first-of-its-kind" commercial projects to market.

Technology companies compete with each other in a lot of ways but they all want to achieve the goal of being able to run operations and data centers using 24/7 carbon-free energy. They've done about as much as they can trying to buy, build and/or get credits from wind and solar plants and it hasn't been sufficient. With its announcement, Google acknowledges that they "need a broader portfolio of advanced clean electricity technologies" to be able to fully decarbonize their energy consumption.

The announcement lists the following as "advanced clean electricity technologies": next-generation geothermal, advanced nuclear, clean hydrogen and long-duration energy storage.  This is an astounding announcement because it makes it clear that the tech companies are now moving their focus away from wind and solar, which are just too inconsistent and unreliable, to better, more reliable options.

The initiative aims to aggregate their demand for better types of clean energy to increase their buying power, their lobby power (we have to believe) and diversify the risks of investing in first-of-a-kind (FOAK) plants, whose costs are always higher than "Nth" of a kind plants. They recognize that there are a bevy of developers looking to build next-generation nuclear (and probably also geothermal) plants and they want to be able to help these ventures build those FOAK units, without each individually and solely having to take on risk. This is a tremendously important initiative and concept, it will definitely help accelerate the timelines for companies seeking to get plants built.

THe announcement comes just a few weeks after Amazon announced their purchase of Talen's nuclear-power Cumulous Data Center, which will enable Amazon Web Services to achieve their very ambitious decarbonization goal by 2025. But there aren't many nuclear power plants with spare generating capacity. In order to get access to sufficient quantities of 24/7 clean nuclear power, the U.S. will need to start building next-generation plants, many of which will be Gen IV designs.

Read more at Google's The Keyword:   "A new initiative with Microsoft and Nucor to accelerate advanced clean electricity technologies," by Maud Texler, Global Director, Clean Energy and Decarbonization Development March 19, 2024.

Also see the IEA Report, Net Zero by 2050: A Roadmap for the Global Energy Sector, cited by Google for its support of the need for advanced energy technologies, revised October 2021.

March 7, 2024

Amazon buys Nuclear-Powered Data Center

Amazon has leapt out ahead of other large tech companies in meeting its 2025 carbon reduction goals by buying Talen's existing nuclear-powered data center, adjacent to and powered by Talen's Susquehanna Nuclear Power Plant.  This, however, is part of a trend in which tech companies are going nuclear . . . in order to obtain 24x7 clean energy.

According to Nuclear Newswire, Talen Energy announced the sale of Cumulus Data Assets, its 960-megawatt data center campus to cloud service provider Amazon Web Services (AWS), a subsidiary of Amazon, for $650 million. Cumulus sits on a 1,200-acre campus in Pennsylvania and is directly powered by the adjacent Susquehanna Steam Electric Station, which generates 2.5 gigawatts of power.

“We believe this is a transformative transaction with long term benefits,” said Mark “Mac” McFarland, Talen president and chief executive officer of Talen, on a Monday call with investors and media. As power demand continues to rise worldwide, “data centers are at the heart of that growth,” he added.

“Several years ago, Amazon set an ambitious goal to reach net-zero carbon by 2040—ten years ahead of the Paris Agreement. As part of that goal, we’re on a path to power our operations with 100 percent renewable energy by 2025—five years ahead of our original 2030 target,” an Amazon spokesperson said. “To supplement our wind and solar energy projects, which depend on weather conditions to generate energy, we’re also exploring new innovations and technologies and investing in other sources of clean, carbon-free energy. This agreement with Talen Energy for carbon-free energy is one project in that effort.”

The Susquehanna nuclear power plant is the sixth largest nuclear power plant in the United States and produces 63 million kilowatt hours per day. Its two General Electric boiling water reactors have been on line since 1983 and are licensed to operate through 2042 and 2044, respectively. Talen, its majority owner, is a Houston, Texas-based company, which filed for Chapter 11 bankruptcy in May 2022 as part of a financial restructuring. The company exited bankruptcy in 2023, and officials have said that this recent transaction with AWS is a boost to its cash flow. After paying off debts, interest and other costs, Talen expects net proceeds of $361 million from the deal with Amazon.

Read more at Nuclear Newswire "Amazon buys nuclear-powered data center from Talen,"  March 7, 2024.

November 16, 2023

Investors are turning bullish on nuclear

After years of disinterest, energy security concerns and the push for net zero are leading investors to bet on nuclear power. The fact that the world has not managed to meaningfully reduce emissions—despite commitments from most every country and billions spent on renewables—has made it clear that more dramatic action is needed.

Many of those trying to gauge investor interest look at spot Uranium prices, believing that these are a barometer for investor interest in nuclear. The fact that the spot price rose 55% between January and October speak loudly about the shifting sentiments and prospects for nuclear power.

According to Cameco's website, the world's largest publicly traded uranium company, “Ongoing geopolitical events coupled with the global focus on the climate crisis have created what we believe are transformative tailwinds for the nuclear power industry, from both a demand and supply perspective.” Not surprisingly, Uranium spot prices stood at $74.38 per pound at the end of October, based on month-end prices published by nuclear research companies UxC and TradeTech, up from just $18 in October 2016 and $47.68 at the end of 2022. According to Morningstar, nuclear related exchange traded funds were the best performing ETFs, with Sprott Uraniaum Miners ETF (URNM) gaining 13% over the summer.

Back in May, Bank of America’s Research Investment Committee (RIC) forecast a 20 to 40% upside on uranium and nuclear power after a decade of underinvestment. Bank of America published its research findings in a report called  "The Nuclear Necessity" and pointed out that global demand for nuclear had grown with 60 new reactors being built, 100 more approved and plans for old reactors to be refurbished, adding to the positive investor sentiment.

The entire global economy is, in fact, poised to move into a new period of increased interest in building nuclear, premised upon macroeconomic forces that include "resource nationalism, energy security, war and inflation."  According to Jared Woodard, Bank of America's Investment and ETF Strategist, "Every analyst I spoke to was bullish on prospects for nuclear power as a technology that's clean and meets the kinds of goals that so many policymakers are eager to hit in terms of reducing emissions."

Both sides of the political spectrum see the beneifts of nuclear, progressives like the low emissions and highly reliable capacity of nuclear for addressing climate change and conservatives like the national and energy security aspects. [Aside: What's been working in the U.S. Congress is that both Democrats and Republicans vote in support of bills that both protect existing and help next-generation nuclear power using voice votes. Pronuclear bills have been passed with bipartisan majorities in every administration since Barack Obama's, with the Biden Administration doing the most good to level the playing field for nuclear. Virtually every elected official supports nuclear but progressives still find it harder to explain their support to their constituents. Less so with Republicans.]

Read more at Reuters Investors are turning bullish on nuclear, by Paul Day, November 16, 2023.

Reuters, Best and Worst Performing ETFs in August, by Valerio Baselli, September 15, 2023.

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