A company in New Brunswick, which had plans to construct its inaugural small modular nuclear reactor, is now selling some of its assets amid uncertainties about its future in the province. Moltex Energy Canada is divesting its engineering designs, patents, software, intellectual property, and other assets to a new entity interested in selling reactors in different locations.
Nuclea Energy Inc., based in British Columbia, has offered Moltex $11.5 million for these assets, a considerably lower amount compared to the public investments made in the Saint John company over the past decade. Facing financial challenges, Moltex has been under the management of insolvency administrators since running out of funds last year.
Despite Nuclea categorizing the purchase as acquiring “distressed assets,” Moltex’s CEO, Rory O’Sullivan, affirmed that the company will persist and has not ruled out the possibility of proceeding with the construction of a small modular reactor in New Brunswick. O’Sullivan expressed optimism about collaborating with the province to explore future opportunities, although the likelihood of such a prospect seems dim.
The Energy Minister, René Legacy, previously indicated a preference for separating the development of new electricity sources from local job creation incentives, citing the province’s reluctance to undertake high-risk ventures. Nuclea plans to conduct an initial public offering on the New York Stock Exchange, with a portion of the raised capital earmarked for the Moltex acquisition.
The sale agreement does not encompass all of Moltex’s assets, indicating a partial transaction. Nuclea’s reactor design, named Morpheus, differs technologically from Moltex’s stable salt reactor model, targeting markets such as Arctic communities, data centers, mines, and remote military sites. The sale does not mention Moltex’s original plan to locate its first reactor near N.B. Power’s Point Lepreau generating station.
Legacy acknowledged the potential sale and expressed readiness to engage with the new owners. Nuclea described its Morpheus reactor as an innovative design with unproven features, emphasizing that it is not yet fully validated. A review panel examining N.B. Power endorsed caution towards new technologies, advising against untested models to mitigate financial risks for ratepayers.
Moltex had received financial support from the Liberal government and federal government for technology development. The Progressive Conservative government had also backed Moltex and another developer, Arc Clean Energy Canada, with the aim of positioning New Brunswick as a global leader in nuclear technology. However, financial challenges faced by both companies raised doubts about their ability to deliver small reactors promptly to address potential electricity shortages.
Former executives and officials have urged N.B. Power to explore alternative options, including more advanced SMR designs. Nuclea’s president did not respond to interview requests regarding the asset acquisition.
