Newcleo Relocates Holding Company to France
to Tap EU Funds Amid €1bn Equity Raise
Newcleo, the nuclear unicorn developing lead-cooled small modular reactors (SMRs) fueled by radioactive waste, is relocating its holding company from the UK to France. This strategic move is aimed at enhancing access to significant funding from French and EU financial institutions, a critical factor as the company looks to raise €1 billion in equity. Despite the relocation, Newcleo remains committed to its UK operations, particularly in building next-generation SMRs for the UK grid.
NewCleo’s decision follows an earlier announcement this year where Newcleo disclosed plans to expand a fuel factory in southern France, halting similar plans in the UK after President Emmanuel Macron reported a charm offensive.
About Newcleo
Newcleo is a pioneering company in the nuclear energy sector, focused on developing advanced small modular reactors (SMRs) that utilize lead-cooled technology and radioactive waste as fuel. Founded to push the boundaries of sustainable nuclear power, Newcleo aims to deliver safer, more efficient energy solutions that align with global decarbonization efforts. Their innovative approach positions them at the forefront of the next-generation nuclear industry.
About SMR Reactors
Small Modular Reactors (SMRs) represent a transformative leap in nuclear energy technology, designed to be smaller, safer, and more flexible than traditional reactors. These reactors can be deployed in various locations, including remote or off-grid areas, to provide reliable, low-carbon energy. With enhanced safety features and the ability to utilize different fuel types, including radioactive waste, SMRs are a key component in the future energy mix, addressing environmental and energy security challenges.
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NEWCLEO’S NEWS FLOW IS POSITIVE
In December 2023, Newcleo was selected under France's "France 2030" investment plan to advance its LFR-30 project, aiming to commission this reactor by 2030. Additionally, Newcleo plans to build a mixed oxide (MOX) fuel plant for recycling nuclear fuel. The LFR-30 project in France is a stepping stone toward Newcleo’s larger goal: constructing a 200 MWe commercial unit, the LFR-AS-200, in the UK by 2033.
LFR technology, though still in its pre-conceptual stage globally, is being actively developed in Russia with the Brest-OD-300, slated to start operations in 2029. Newcleo’s progress in this field remains in its early stages, with significant milestones yet to be achieved. However, Newcleo's commercial activities have been impressive. Following an initial $118 million capital raise and the acquisition of Hydromine Nuclear Energy, Newcleo raised €300 million in June 2022 and began preparing for MOX fuel production with France's Orano.
Further collaborations have included a March 2023 agreement with Italy's Enel on nuclear technology and a July 2023 partnership with Italy's Fincantieri and RINA for nuclear applications in shipping. These deals, alongside a €1 billion equity raise, highlight Newcleo's commitment to establishing a strong industrial presence. In late 2023, Newcleo secured partnerships with key players, including the UK’s National Nuclear Laboratory, Italy's Tosto Group, and France's Naarea and MAIRE subsidiaries.
Newcleo’s recent developments include a partnership with Viaro Energy to deploy LFRs in the oil and gas sector and with the French Alternative Energies & Atomic Energy Commission (CEA) to advance its reactor technology. In the UK, Newcleo's LFR-AS-200 has reached the justification decision stage, a significant regulatory milestone, although it does not yet permit construction. CEO Stefano Buono has emphasized the company's commitment to delivering its first commercial reactor in the UK by 2033, underscoring Newcleo’s vision for revolutionizing nuclear energy.
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Private companies carry inherent risks and may not be suitable for all investors. The information provided in this article is for informational purposes only and should not be construed as investment advice. Always conduct thorough research and seek professional financial guidance before making investment decisions.
