A firm planning to construct its inaugural small modular nuclear reactor in New Brunswick is initiating the sale of some of its assets, signaling uncertainty about its future in the province. Moltex Energy Canada is divesting its engineering designs, patents, software, intellectual property, and other resources to a new entity interested in marketing reactors elsewhere. Nuclea Energy Inc., based in British Columbia, is proposing an $11.5 million acquisition of Moltex, a mere fraction of the public funds injected into the Saint John company over the past decade.
Facing financial depletion last year, Moltex has been under the supervision of insolvency administrators. Nuclea characterizes the purchase as acquiring “distressed assets.” Despite these developments, Moltex’s CEO, Rory O’Sullivan, affirmed the company’s continuity and did not discount the possibility of proceeding with the construction of a small modular reactor in New Brunswick at a later stage.
While expressing optimism about collaborating with New Brunswick, O’Sullivan acknowledged the escalating improbability of such a scenario. Energy Minister René Legacy previously indicated a preference for segregating new electricity generation procurement from local job creation initiatives. He emphasized the province’s reluctance to undertake pioneering endeavors due to associated risks.
Nuclea disclosed intentions for an initial public offering on the New York Stock Exchange and earmarked 20% of the raised capital for the Moltex transaction. The company also secured an exclusivity agreement with Moltex, preventing discussions with other potential buyers until a specified date. Notably, Nuclea’s reactor design, Morpheus, differs technologically from Moltex’s stable salt reactor model and targets markets like Arctic communities, data centers, mines, and remote military installations.
The sale does not involve a comprehensive acquisition of Moltex’s assets or liabilities. The review panel evaluating N.B. Power advised against pursuing untested technologies to mitigate financial risks. Moltex had previously received funding from the federal and provincial governments for technology development. However, financial hurdles faced by Moltex and another developer, Arc Clean Energy Canada, raised doubts about their capacity to deliver small reactors promptly.
The potential buyer, Nuclea, described its Morpheus reactor as a pioneering design with innovative features that are not yet fully validated. The panel recommended N.B. Power opt for proven reactor models to avoid exacerbating financial challenges, endorsing established designs like larger CANDU reactors. Past administrations in New Brunswick had championed Moltex and Arc Clean Energy Canada as catalysts for nuclear technology leadership, job creation, and economic benefits. However, the viability of these projects was called into question due to financial setbacks and time constraints.
The article was originally published on CBC News.
