A company planning to construct its inaugural small modular nuclear reactor in New Brunswick is now selling some assets amid uncertainty about its future in the region. Moltex Energy Canada is offloading engineering designs, patents, software, intellectual property, and other assets to a new entity interested in distributing reactors elsewhere. Nuclea Energy Inc., based in British Columbia, has offered $11.5 million to acquire these assets from Moltex, a mere fraction of the public funds invested in the Saint John company over the past decade. Facing financial difficulties, Moltex has been in the hands of insolvency administrators. Despite Nuclea labeling these assets as “distressed,” Moltex CEO Rory O’Sullivan indicated that the company will persist and has not dismissed the possibility of proceeding with the SMR construction in New Brunswick eventually.
While expressing optimism about working with New Brunswick, O’Sullivan acknowledged the increasing uncertainty surrounding the project. Energy Minister René Legacy previously expressed a preference for separating electricity generation sourcing from local job creation incentives. Nuclea intends to conduct an IPO on the New York Stock Exchange, with 20% of the raised capital designated for the Moltex acquisition. The company has an exclusive agreement with Moltex, restricting discussions with other potential buyers until May 8. Nuclea’s Morpheus reactor design differs from Moltex’s stable salt reactor and targets markets such as Arctic communities, data centers, mines, and remote military sites.
The review panel examining N.B. Power aligned with Legacy’s caution concerning new technologies, advocating for proven models like larger CANDU reactors to mitigate financial risks. Moltex had received funding from the Liberal and federal governments, while the Progressive Conservative administration also supported Moltex and another developer, Arc Clean Energy Canada, with ambitions to position New Brunswick as a global leader in nuclear technology. However, financial challenges arose for both companies, casting doubt on their ability to deliver small reactors promptly amidst potential electricity deficits. In 2024, a former executive from Arc suggested exploring alternative SMR designs that were more advanced and readily available. Nuclea President Sagar Sanghera declined an interview request.