X-energy Reactor Co., a developer of small modular reactors, signed a definitive agreement to merge with Ares Acquisition Corporation (NYSE: AAC), a publicly-traded SPAC, to create a New York Stock Exchange company valued at $2 billion, funded with $120 million in additional committed capital.
X-energy, an advanced nuclear developer founded by Kam Ghaffarian in 2009 and based in Rockville, Maryland, is designing next-generation nuclear reactors and fuel. Their high-temperature gas-cooled small modular reactor (SMR), the Xe-100, and its fuel, TRISO-X are engineered to operate as a single 80-MW unit or can be deployed as a four-unit plant for a combined 320 MW of capacity.
In 2020, the company was selected by the US Department of Energy to receive up to $1.2 billion in non-dilutive federal funding as part of the DOE's Advanced Reactor Demonstration Program. WIth its merger with Ares, anticipated to close in the second quarter of 2023, X-energy will have access to about $1 billion in cash that is in the trust account of Ares Acquisition Corp., assuming no or low redemptions by shareholders. Ontario Power Generation, Segra Capital Management Ares Management are collectively adding another $120 million to the final deal.
This is the second of two advanced nuclear ventures that are going public via a SPAC and gaining access to the public market as a result. There is a very big race among ventures seeking to develop advanced reactors and X-energy's entry into public markets is expected to accelerate its growth both with the additional financing received and the flexibility provided it by being a public entity.
Diablo Canyon has been saved—for now! Rather than allowing this clean energy producing power plant to be wastefully decommissioned by those who simply dislike nuclear power, the California legislature, under the leadership of Governor Gavin Newsom, voted to extend its life by up to 10 years. Senate Bill 846, sponsored by Jordan Cunningham (CA-25, R), passed with nearly unanimous votes in both the Democratically-controlled Assembly and Senate. SB 846 also provides for as much as $1.4 billion in loans from California to PG&E for re-licensing and enables PG&E to also submit a timely application to the DOE's Civil Nuclear Credit program for further aid in re-starting licensing with the NRC and transitioning back to full-operating mode. This is a nearly miraculous win for California's pronuclear advocates and it is worth celebrating both the win and the broader community that made it possible.
While there are a lot of individuals and organizations who contributed to setting the stage for this phenomenal political win for nuclear power in general and Diablo Canyon specifically, there were also considerable underlying political realities that effectively forced the Governor's hand. In particular, the state's own energy experts from CALISO, CEC, as well as academia and industry, expressed extreme alarm at the high level of fragility of the grid and the high risk of power outages even with Diablo Canyon operating. The closure of Diablo Canyon was clearly going to exacerbate the already bad situation. Climate change and state clean energy mandates made the CPUC's plan to replace Diablo Canyon's clean energy with dirty coal power from PacifiCorp anathema to the both the state's goals and the Governor's political reputation. Meanwhile, the Russian invasion of Ukraine has resulted in dire energy shortages in Europe and rising gas prices. This is making the world's growing reliance on natural gas both uneconomical and politically unsavory.
With that as the political and economic backdrop, we wish to take a look at some of the individuals and groups that took on prominent roles advocating for nuclear power in general and for Diablo Canyon specifically. Some of these groups worked behind the scenes and some played highly prominent roles. The press has recognized the advocacy of the San Luis Obispo-based Mothers for Nuclear, which has consistently stood up for Diablo Canyon at local hearings, rallies and in the press. This mom-led non-profit further coordinated with Isabelle Boemeke, a model-turned "nuclear influencer," whose online presence "Isodope," introduced a witty, stylish and slightly snarky approach to pronuclear advocacy, sharing her frank messaging with a new generation. Together, they organized several recent and memorable public events, a rally on behalf of Diablo Canyon and the issuance of letter to Governor Newsom signed by 79 prominent scientific experts. As impactful as both of those campaigns were, their success rested upon a foundation of public opinion that had grown stronger due to very considerable contributions from the following very notable individuals and groups:
The Pronuclear Village
(Click to enlarge.)
Nuclear-Focused Writers
James Conca, Forbes Robert Bryce, Forbes and other Michael Shellenberger, Forbes, Environmental Progress Rod Adams, Atomic Insights Catherine Clifford, CNBC
Academics & Scientists
Dr, James Hansen, Climate Science, Awareness and Solutions, at the Earth Institute of Columbia University Dr. Todd Allen, University of Michigan Dr. Jacopo Buongiorno, MIT Dr. Steven Chu, Stanford University Dr. Jesse Jenkins, Princeton Dr. Jessica Lovering, University of Colorado, Boulder Also, another 75 or so who signed the February 2022 letter to Governor Newsom
Stewart Brand, The Whole Earth Catalog Californians for Green Nuclear Power, Dr. Gene Nelson What is Nuclear, Nick Touran Radiant Energy, Mark Nelson Thorium Energy Alliance, John Kutsch Google, Ross Koningstein (IEEE, White Papers) D.J. LeClear, The Rad Guy TEA, Silicon Valley, Alex Cannara Save Clean Energy, Isabelle Boemeke Citizen’s Climate Lobby, Jim Hopf (Nuclear group) 4th Generation Blog, Canon Bryan, Amelia Tiemann Rethinking Nuclear, Richard Steeves
Politicians & Biden Admin
Trump Administration & Congress, laid a foundation with the passage of NEIMA & NEICA Senator Sheldon Whitehouse, loudly pronuclear Senator Cory Booker, introduced his support of nuclear power during the 2019 Primary Climate Debates President Joe Biden, ushered in the Energy Bill of 2020, which funded the Advanced Reactor Development Program (ARDP), to accelerate commercialization of the next generation of reactors Dept. of Energy, Secr. of Energy, Jennifer Granholm, worked overtime to introduce the Civil Nuclear Credit program in a timely way, plus, she has posted many great videos about the need for nuclear to address climate Gov. Gretchen Whitmer has expressed her support for the protection of the Palisades Nuclear Power plant and now for Holtec's application to restart it The Infrastructure & Jobs Act, set up the Civil Nuclear Credit Program, with a $6 billion fund to save nuclear power plants, such as Palisades and Diablo Canyon Representative Elaine Luria, has introduced a bevy of important nuclear energy bills, including the Nuclear Energy Leadership Act (’19), Nuclear Power Purchase Agreements Act (’21), and Fueling our Nuclear Future Act (’22) All of Congress, has used voice votes to approve key pronuclear pieces of legislation Senator Diane Feinstein, wrote about her support for Diablo Canyon in a number of OpEds DOE’s Loan Program Office (LPO), under the leadership of Jigar Shah, has been working to provide Government-guaranteed loans to key projects
Funders
There is a small but dedicated community of funders who have shown a willing to support many of the above non-profits, as well as the various artistic and advocacy campaign initiatives. We are greatful to them, as they have allowed much of the work that others have not been willing to fund, to be produced.
[Please note: All of the above listed groups have websites that are available online. Legislation is all searchable. We are not able to provide links for every group but have provided for some that may be harder to find. If you have trouble finding information you need, please reach out through our contact form. We have had a prime seat for the last decade or so to follow the events but we cannot possibly include everyone or every group that is active in this space. However, if you think we have omitted an important contributor who should be listed as having had a meaningful impact on the decision to save Diablo Canyon, please use the comment box below to send us a private message.]
