X-energy: Massive Funding Achievement in Nuclear Energy Technology

X-energy: X-energy, a leader in nuclear energy technology, is making headlines after successfully raising $700 million in a Series D funding round. This achievement comes less than a year after expanding its Series C round from $500 million to $700 million, bringing the company's total funding to $1.4 billion in the past year alone. This amount is significant even in the nuclear energy startup sector, with X-energy's total funding reaching $1.8 billion to date.

Funding Utilization and Customers

New Funding: The company aims to utilize this new funding to build the supply chain for its Small Modular Reactors (SMRs). X-energy confirms it has already received orders for 144 of these reactors, with a total generation capacity of up to 11 gigawatts of electricity. Prominent customers include e-commerce giant Amazon, chemical company Dow, and British energy company Centrica.

Prominent Investors

Investors: Jane Street led the latest funding round, an investor who previously participated in the expanded Series C round. This round also saw participation from several other prominent investors, including funds from Ares Management, ARK Invest, Corner Capital, Emerson Collective, Galvanize, Hood River Capital Management, NGP, Point72, Reaves Asset Management, Segra Capital Management, and XTX Ventures.

X-energy Technology

High-Temperature Reactors: X-energy focuses on developing gas-cooled high-temperature reactors, a type of nuclear reactor recently utilized in Japan and China. Each of the company's Xe-100 reactors can generate 80 megawatts of electricity. These reactors rely on unique fuel in the form of billiard ball-sized pebbles coated with carbon and containing uranium particles. Inside the reactor, helium gas flows over these pebbles to collect heat, which is then transferred to a steam turbine to generate electricity.

Amazon's Interest in Nuclear Energy

Amazon's Interest: Like many nuclear energy startups, X-energy has garnered significant attention from technology companies and data center developers. Amazon's Climate Pledge Fund led the first tranche of the company's Series C round. Last year, Amazon also announced it would purchase over 600 megawatts of nuclear power in the Pacific Northwest and Virginia, with the reactors expected to be commissioned in the early 2030s. The Amazon-X-energy agreement could see up to 5 gigawatts of power deployed by 2039.

Competition in the SMR Market

Competition: X-energy competes with several other startups in the Small Modular Reactor (SMR) sector to revitalize the nuclear industry in the United States. While many of these designs appear promising, only a few SMR power plants have been built to date, and none are currently operational in the United States.

Overview of Small Modular Reactors (SMRs)

Definition of SMRs: Small Modular Reactors (SMRs) are advanced nuclear reactors characterized by an electrical power capacity of up to 300 MW per unit, which is about one-third the capacity of traditional nuclear power plants. These reactors are distinguished by their compact size, allowing them to be installed in locations unsuitable for large nuclear power plants. Key SMR components are manufactured in factories and then shipped and installed on-site, reducing construction costs and time compared to large reactors, which are often custom-designed for each site, potentially leading to construction delays. SMRs offer greater flexibility in financing, siting, sizes, and end-use applications, and additional units can be deployed incrementally to meet increasing energy demand.

Benefits of SMRs: Among the most prominent benefits of Small Modular Reactors (SMRs) are their lower initial capital investment cost, increased scalability, and site flexibility. They also have the potential to enhance safety and security compared to previous designs. The deployment of advanced SMRs can contribute to economic growth, and they are expected to reduce the need for on-site construction work and increase containment efficiency. Passive safety systems in SMRs operate without the need for external power or human intervention in emergencies, which enhances their safety. Furthermore, SMRs can be connected to other energy sources, including renewable and fossil energy sources, to enhance efficiency and provide multiple energy products while increasing grid stability and security. Some advanced SMR designs have the ability to produce higher-temperature process heat for electricity generation or industrial applications (Source: Energy.gov, IAEA).

Global SMR Developments: Despite challenges, Small Modular Reactors (SMRs) have seen significant progress. In 2020, Russia's "Akademik Lomonosov" floating nuclear power plant, the world's first floating nuclear power plant, began commercial operation, generating power from two 35 MW SMRs. In China, the gas-cooled high-temperature modular pebble-bed reactor "HTR-PM" was connected to the grid in 2021. As of 2024, both China and Russia are successfully operating SMRs. Globally, there are currently 127 SMR designs under development, including seven operational or under construction, 51 in pre-licensing or licensing stages, and 85 in discussions with potential site owners. (Source: Wikipedia, IAEA).