The world of nuclear energy is witnessing a fresh wave of innovation as a new startup has made headlines by going public through a reverse merger. This strategic move has allowed the company to secure $30 million in funding, marking a significant milestone in its journey.
In an intriguing twist, this startup is not just another player in the nuclear sector; it aims to revolutionize the industry by developing compact, cylindrical nuclear power plants. These innovative reactors are designed to be installed deep underground, specifically in 30-inch diameter holes drilled a mile beneath the Earth’s surface. This unique approach is intended to address critical issues associated with traditional reactors, such as the risks of meltdowns and vulnerabilities to potential terrorist threats.
The reactors, boasting a capacity of 15 megawatts, utilize pressurized water for cooling, a technology that has been successfully employed in nuclear submarines and numerous existing power plants. This familiarity with proven technology adds an extra layer of confidence in the startup’s ambitious plans.
Earlier this year, the company secured a partnership with a prominent data center developer to construct 2 gigawatts of these underground reactors, showcasing its commitment to integrating nuclear power into modern infrastructure.
Despite facing challenges in raising initial capital, including a recent attempt to secure a $15 million seed round, the startup has made significant strides. In August, it was selected to participate in a streamlined permitting initiative by the Department of Energy, aimed at accelerating the development of new reactor technologies.
The reverse merger with Surfside Acquisition Inc. was executed at a share price of $3, which is notably lower than the typical $10 target for SPACs. While the new entity will continue to operate under the startup’s name, its shares are not yet available for trading, although plans are in place to list them on the OTCQB market.
The circumstances surrounding this SPAC transaction, including the pricing and market selection, suggest that the startup faced challenges in attracting new investments from shareholders who initially funded the company with a $4 million investment last year. The funds from the merger provide a crucial lifeline, extending the startup’s operational runway, albeit with the added burden of SEC reporting requirements typical for public companies.
Looking ahead, the startup is optimistic about launching its first reactor by July 2026, a goal that could significantly impact the future of nuclear energy and its role in sustainable power generation.