In the past year, companies focusing on small modular nuclear reactors (SMRs) have secured more than $1.5 billion in funding. This investment surge is driven by a growing demand from technology companies for power to support AI model training, as well as commitments from governments to invest in the industry.
X-energy, for example, recently raised $700 million, while Paris-based Newcleo secured $151 million last year. Additional funding totaling $700 million has been channeled into Oklo, NuScale, and Nano Nuclear for similar projects within the United States.
Although nuclear fusion remains a distant possibility, SMRs have become a highly sought-after technology in the nuclear sector. Valar Atomics, an SMR startup, has successfully raised $19 million in a seed funding round for the development of its first test reactor. This financing round was led by Riot Ventures and included participation from AlleyCorp, Initialized Capital, Day One Ventures, and Steel Atlas.
Valar Atomics’ SMR technology is based on a helium-cooled, high-temperature gas reactor design. These reactors are to be constructed at sites termed ‘gigasites’, akin to gigafactories used in battery production. Through this production line approach, Valar aims to significantly lower the costs traditionally associated with the bespoke nature of nuclear reactor construction.
Isaiah Taylor, co-founder and CEO of Valar Atomics, explained to TechCrunch that the challenge in reactor construction is not the technology itself but rather its deployment. He believes that adopting an industrial approach, as opposed to an artisanal one, could address this issue.
The company intends to establish multiple SMRs primarily at off-grid sites to power data centers and industrial plants. It has secured an initial contract with the Philippines Nuclear Research Institute to construct a reactor in the country. The contract includes plans to pilot a test-scale reactor and build two full-scale reactors before the first integrated reactor becomes operational.
According to Taylor, the plan is to construct the initial reactors, which will eventually lead to the organic development of a factory.
Valar’s technology employs helium gas to achieve temperatures up to 900°C, three times higher than conventional nuclear reactors. This capability allows Valar to produce hydrogen efficiently and use it in combination with captured CO2 to create low-carbon synthetic fuels for vehicles and infrastructure.
Taylor emphasized the potential benefits of reaching such high reactor temperatures, noting that it can make hydrogen production inexpensive and unlock new possibilities, including the creation of synthetic fuels. The company is also focused on reducing the costs of both the production process and the reactors themselves.
Notably, Valar Atomics managed to design, engineer, and construct its thermal test unit within approximately ten months. Taylor highlighted that the first nuclear reactor was built in only eight months in 1943, indicating the plausibility of their timeline.
Taylor’s background includes being the grandson of a nuclear physicist involved in the Manhattan Project. He left high school at 16 to study software systems and later founded several startups. The technical efforts of Valar Atomics are led by Chief Nuclear Officer Mark Mitchell, former president of Ultra Safe Nuclear Corporation and a leader in the world’s first small modular reactor project in South Africa. The team also includes personnel from USNC, such as Willem van Rooyen, the head of mechanical engineering.
While Valar Atomics’ plans are notably ambitious, the current environment seems conducive to nuclear projects. The U.S. Inflation Reduction Act has facilitated private investment in clean energy infrastructure, while China is investing $440 billion in new nuclear plants. Additionally, 14 of the world’s largest banks have expressed their support for tripling nuclear energy capacity by 2050.
