SPAC Archives - Nucleation Capital

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.

Read more at UtilityDive: Nuclear SMR developer X-energy to merge with Ares Management-backed SPAC, creating $2B company, by Stephen Singer, published December 7, 2022 and see the press announcement at X-energy's website, posted December 6, 2022.

Published by Nucleation Capital in Advanced Nuclear, Asset manager support, Capital reallocation, Carbon emissions, Carbon markets, Future of Energy, History Timeline, History-making, Investor activity, LINKS, Nuclear competitiveness, Nuclear financing, Nuclear innovation, Private companies, Public companies, Solving climate, US competitiveness, US technological leadership, Zero emission energy

NuScale, a company that has developed an advanced and innovative form of light water reactor that provides clean, reliable power through a series of smaller modular cores, announced that it has agreed to merge with Spring Valley Acquisition Corp., a special acquisition company in a SPAC deal that is expected to close in the first half of 2022.

NuScale, while generally not considered a "Gen IV" design (since it still utilizes the traditional LWR design), nevertheless made history when it received NRC certification of the design's underlying safety features back in September 2020 for its unique 60 MW reactor form factor design, becoming the first Small Modular Reactor design to do so. In partnership with the DOE, NuScale has planned to deploy its first reactor complex on behalf of the Utah Associated Municipal Power System (UAMPS), to showcase the new technology. Nevertheless, despite receiving its final safety evaluation from the NRC, NuScale will still need to submit a Combined License Application to the NRC in order to start building its reactor in the U.S.

https://www.youtube.com/watch?v=5UkoBZHm0kw&t=162s

Upon completion of this SPAC transaction, the combined entity will be valued at almost $2 billion and will leave NuScale with over $400 million in cash proceeds, in part from a further PIPE fundraise. Fluor Corporation, currently a majority owner of NuScale, will hold about 60% of the company upon completion.

NuScale has been able to tout their NRC safety approval to begin lining up SMR customers around the world. According to a Bloomberg article, the company is fielding interest for 19 deals in 11 countries and may potentially complete a development in Romania before evening completing their first in the U.S. Given that NuScale can expect to see revenue even prior to when a new plant is complete, the company anticipates seeing meaningful revenue as early as 2024.

For more on NuScale's plans, see Bloomberg's Small Nuclear Developer NuScale to Go Public Through SPAC Deal, by Will Wade, December 14, 2021 and MarketWatch's Fluor's NuScale Power to Combine with SPAC Spring Valley, by Collin Kellaher, Dec. 14, 2021

Published by Nucleation Capital in Advanced Nuclear, Future of Energy, History Timeline, History-making, Investor activity, LINKS, Nuclear financing, Nuclear innovation, Private companies, Public companies, US technological leadership

X-energy pursuing public listing with $2B value

NuScale becomes 1st New Nuclear Public Listing