A company in New Brunswick that planned to construct its inaugural small modular nuclear reactor is now in uncertain waters, leading to the decision to sell off some of its assets. Moltex Energy Canada is offloading its engineering designs, patents, software, intellectual property, and modeling data 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, a mere fraction of the public investment in the Saint John company over the past decade.
Facing financial difficulties, Moltex found itself under the administration of insolvency trustees last year. Nuclea has labeled the assets it is acquiring as “distressed assets.” Despite the challenges, Moltex’s CEO, Rory O’Sullivan, affirmed that the company will persist and has not ruled out the potential advancement of building a small modular reactor in New Brunswick.
The future of Moltex’s reactor project in New Brunswick appears bleak. Energy Minister René Legacy indicated a preference for separating the pursuit of new electricity generation from local job creation motives. He emphasized caution, stating that New Brunswick is not prepared to take on significant risks associated with groundbreaking initiatives.
Nuclea disclosed in its recent filing with the U.S. Securities and Exchange Commission its intention to launch an initial public offering on the New York Stock Exchange, with a portion of the proceeds allocated to the Moltex acquisition. An exclusivity agreement was reached between Nuclea and Moltex, preventing Moltex from engaging with other potential buyers until the agreed-upon timeline.
Nuclea’s reactor design, named Morpheus, differs technologically from Moltex’s stable salt reactor model. The primary markets for Morpheus include Arctic communities, data centers, mines, and remote military sites, as outlined in the filing.
The expert panel reviewing N.B. Power’s operations aligned with Legacy’s stance, advising against adopting unproven technologies. Past governments’ financial support, including $5 million from the Liberal government and $50 million from the federal government, fueled Moltex’s technology development. The Progressive Conservative government, under Blaine Higgs, also championed Moltex and another developer, Arc Clean Energy Canada, envisioning New Brunswick as a global nuclear technology leader.
Both Moltex and Arc Clean Energy faced financial hurdles, casting doubt on their ability to deliver small reactors on schedule. Suggestions were made to explore alternative SMR designs that were more advanced and accessible. Nuclea’s president, Sagar Sanghera, did not respond to interview requests regarding the recent developments.
