Nuclear startup X-energy has launched its investor roadshow as it prepares for an initial public offering (IPO), aiming for a share price between AUD 16 and AUD 19. Should it achieve the top end of its target, the company could raise approximately AUD 814 million, according to documents submitted to the U.S. Securities and Exchange Commission (SEC).
The renewed interest in nuclear fission power has coincided with the growing demand for electricity, largely driven by AI data centres and widespread electrification. Backing X-energy is tech giant Amazon, which led a Series C-1 funding round, contributing AUD 500 million and committing to purchase up to 5 gigawatts of nuclear power by 2039.
The upcoming IPO will be welcomed by X-energy’s investors, who have invested around AUD 1.8 billion thus far, as reported by PitchBook. The company had previously pursued a public listing through a reverse merger with a special purpose acquisition company (SPAC), but the deal was cancelled in 2023, reflecting the waning enthusiasm for SPACs.
X-energy’s technology features a high-temperature, gas-cooled reactor that utilises uranium encapsulated in ceramic and carbon spheres, cooled by helium. This innovative design, known as TRISO, is expected to offer enhanced safety compared to traditional fuel arrangements, although it isn’t yet widely adopted.
However, X-energy is currently involved in a patent dispute with Ultra Safe Nuclear Corporation (USNC), which went bankrupt in 2024. X-energy claims that USNC infringed on its fuel fabrication patents, and the dispute remains unsettled following USNC’s acquisition during its bankruptcy proceedings.
Globally, the development of new nuclear reactors has largely stagnated, plagued by delays and rising costs. A new wave of startups, including X-energy, aims to tackle these issues by developing smaller reactors. However, none of these small modular reactor companies have yet constructed a power plant, although they are racing to achieve a milestone of criticality—the point at which fission reactions become self-sustaining—set for July 4 by the previous U.S. administration.
While hitting this milestone may be within reach, transitioning from criticality to fully operational and profitable power plants could be a lengthy process. Mass manufacturing is seen as a way to reduce costs, but it usually takes approximately a decade before the benefits materialise. Furthermore, while these startups plan to build more reactors than others have attempted, concerns remain whether this number is sufficient to realise the true advantages of mass production.
X-energy anticipates that, by the time its reactor production methods are fully developed, it could cut costs by 30% compared to initial models. The expenses associated with the first reactor will be crucial in determining the company’s future success. Investors are advised to monitor the costs closely as the launch progresses.
Fanpage: TechArena.au
Watch more about AI – Artificial Intelligence
