A company planning to construct its inaugural small modular nuclear reactor in New Brunswick is moving towards selling some of its assets as uncertainties loom over its future in the province.
Moltex Energy Canada is in the process of selling 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 made an offer of $11.5 million to Moltex, significantly less than the public funds invested in the Saint John company over the past decade.
Facing financial challenges, Moltex exhausted its funds last year and has since been under the supervision of insolvency administrators. Nuclea categorizes the assets it intends to acquire as “distressed assets.”
Despite the setback, Moltex CEO Rory O’Sullivan affirmed the company’s intention to persist, leaving the door open to potentially proceeding with the construction of a small modular reactor in the province at a later time.
While expressing optimism about the future in New Brunswick, the likelihood of this materializing appears to be diminishing. Energy Minister René Legacy indicated a preference for separating the quest for new electricity sources from the local job creation drive.
Nuclea disclosed plans for an initial public offering on the New York Stock Exchange, with a portion of the raised capital earmarked for the acquisition of Moltex. The agreement between the two companies restricts Moltex from engaging with other potential buyers until a specified date.
Nuclea’s reactor design, known as Morpheus, is distinct from Moltex’s stable salt reactor concept. The filing highlights Morpheus’s target markets, including Arctic communities, data centers, mines, and remote military installations.
With uncertainties surrounding the original plan to locate the first reactor near N.B. Power’s Point Lepreau generating station, Legacy acknowledged the potential sale and expressed readiness to engage with the new owners.
The review panel assessing N.B. Power’s operations echoed concerns about venturing into unproven technologies, recommending a focus on established models like larger CANDU reactors to mitigate financial risks.
Moltex had received financial support from both the federal and provincial governments to advance its technology. Despite government backing and promises of economic benefits, Moltex and another developer encountered financial hurdles, jeopardizing their ability to deliver small reactors promptly.
Amidst these developments, suggestions were made to explore alternative SMR designs that were more advanced and could address potential electricity shortages by the end of the decade. Nuclea’s president did not provide comments on the ongoing situation.