A company in New Brunswick that had plans to construct its inaugural small modular nuclear reactor is now considering selling some of its assets as uncertainties surround its future in the province. Moltex Energy Canada has decided to put up for sale its engineering designs, patents, software, intellectual property, and other assets to a new entity interested in marketing reactors in different locations.
Nuclea Energy Inc., based in British Columbia, has proposed to purchase Moltex’s assets for $11.5 million, representing only a fraction of the public funds that have been invested in the Saint John company over the past decade. Moltex faced financial challenges last year, leading to the involvement of insolvency administrators.
Although Nuclea has labeled the assets it aims to acquire as “distressed assets,” Moltex’s CEO, Rory O’Sullivan, assured that the company will persist and has not ruled out the possibility of proceeding with the construction of a small modular reactor in the province in the future.
Despite the company’s history in New Brunswick, Energy Minister René Legacy expressed skepticism about the province taking on the risk associated with pioneering technology. Legacy emphasized the need to separate electricity generation sourcing from local job creation incentives.
Nuclea disclosed plans for an initial public offering on the New York Stock Exchange, intending to allocate 20% of the raised capital to the Moltex acquisition. The company’s reactor design, Morpheus, is distinct from Moltex’s stable salt reactor and targets markets such as Arctic communities, data centers, mines, and remote military sites.
The sale agreement with Moltex does not encompass all assets and liabilities of the company, as per Nuclea’s filing with the U.S. Securities and Exchange Commission. The review panel evaluating N.B. Power’s operations aligned with Legacy’s caution regarding new technologies, recommending the utility to opt for proven reactor models to mitigate financial risks.
Moltex was supported with $5 million from the Liberal government and $50 million from the federal government for technology development, with the Progressive Conservative government also endorsing the company alongside another developer, Arc Clean Energy Canada. Financial challenges encountered by both entities raised concerns about meeting deadlines for small reactor deployment.
In light of the developments, the future of Moltex’s nuclear reactor plan in New Brunswick remains uncertain, pending discussions with potential new owners and regulatory considerations.
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