A company in New Brunswick that had plans to construct its inaugural small modular nuclear reactor is now selling off some of its assets amidst uncertainties about its future in the region. Moltex Energy Canada is divesting its engineering designs, patents, software, intellectual property, modeling data, and other assets to a new entity interested in marketing reactors elsewhere. Nuclea Energy Inc., based in British Columbia, has offered $11.5 million to acquire these assets, significantly less than the public funding Moltex has received over the past decade.
Facing financial challenges, Moltex went bankrupt last year and is currently being managed by insolvency administrators. Nuclea characterizes the assets it is acquiring as “distressed assets.” Despite these developments, Moltex’s CEO, Rory O’Sullivan, affirmed that the company will remain operational, leaving open the possibility of proceeding with the construction of a small modular reactor in New Brunswick.
However, the outlook for such a project appears dim. Energy Minister René Legacy previously expressed a preference for separating electricity generation initiatives from local job creation efforts. He emphasized the province’s reluctance to undertake high-risk ventures, stating that New Brunswick is not in a position to assume such risks.
Nuclea’s recent filing with the U.S. Securities and Exchange Commission outlines plans for an initial public offering on the New York Stock Exchange, with 20% of the raised capital earmarked for the acquisition from Moltex. The agreement between Nuclea and Moltex, which restricts Moltex from engaging with other potential buyers until May 8, does not entail the transfer of all assets or liabilities. Nuclea’s reactor design, named Morpheus, differs technologically from Moltex’s stable salt reactor and is targeted at markets such as Arctic communities, data centers, mines, and remote military sites.
Notably, the original plan for Moltex to locate its first reactor near N.B. Power’s Point Lepreau generating station is not mentioned in the recent developments. Legacy acknowledged the potential sale and expressed interest in engaging with the new owners. Nuclea describes its Morpheus reactor as a unique design with innovative features that are yet to be fully validated.
In light of the financial challenges faced by N.B. Power, a review panel also cautioned against embracing unproven technologies, advocating for established models like larger CANDU reactors. Moltex had previously received financial support from the Liberal government of Brian Gallant and the federal government, as well as backing from the Progressive Conservative government of Blaine Higgs. Both Moltex and another developer, Arc Clean Energy Canada, pledged to position New Brunswick as a global leader in nuclear technology, driving job creation and economic growth.
However, financial setbacks hindered the progress of both companies in delivering small reactors promptly to address potential electricity shortages. Suggestions have been made for N.B. Power to explore alternative options, including more advanced SMR designs that could be available sooner. Despite these developments, Nuclea’s president, Sagar Sanghera, did not respond to requests for an interview.