Nuclear Industry Investments: A Look at SPACs and Small Modular Reactors

In the realm of clean energy, nuclear power is seeing a resurgence, with several companies turning to Special Purpose Acquisition Companies (SPACs) for financial fuel. This trend is particularly evident in the development and deployment of Small Modular Reactors (SMRs), which are designed to be manufactured in factories and transported as movable components.

One such company is Terra Innovatum, which is developing SOLO, a micro modular nuclear reactor for off-grid, zero-carbon power. SOLO, with a generation capacity of 1 megawatt, is designed for use by data centers, hospitals, mining, and industrial purposes. Terra Innovatum aims for commercial deployment by 2028 and plans to list on the Nasdaq under the ticker symbol NKLR.

Another player in the nuclear energy sector is Eagle Energy Metals, a uranium miner and SMR technology developer. Eagle Energy is merging with Spring Valley Acquisition II to go public, with a projected value of $312 million. The combined entity is expected to list on the Nasdaq Stock Market under the ticker symbol "IMSR" during the fourth quarter. Eagle Energy's primary asset is the Aurora uranium deposit on the border of Oregon and Nevada, containing over 50 million pounds of near-surface uranium.

The Tennessee Valley Authority (TVA) and its industry partners also plan to go public through a SPAC by the end of 2025, aiming to raise over $800 million to finance the construction of SMRs at the Clinch River Nuclear Site in the U.S.

Westinghouse, a historic electric company, is 51% owned by Brookfield Renewable Partners (BEP) and 49% by Cameco (CCJ). Westinghouse designs reactors such as the AP1000 and provides other nuclear fuel and plant operation services. Westinghouse plans to partner with companies in its industry to begin construction by 2030 on 10 AP1000 reactors in the U.S. The first AP1000 became commercially operational in September 2018 in China. Two have been deployed in the U.S. at the Vogtle plant in Georgia.

Terrestrial Energy, another nuclear technology company, plans to raise $280 million through a SPAC merger with HCM II Acquisition to fund the development of a nuclear reactor using molten salt as a coolant.

The success of these SPAC-backed nuclear energy firms is reflected in the performance of stocks like BEP, CCJ, and Constellation Energy Group (CEG), which have seen significant gains in the past year, reflecting optimism in the nuclear energy sector.

Notably, SPACs have also been instrumental in the transformation of "blank check" companies like NuScale Power (SMR) and Oklo into real nuclear energy stocks through SPAC mergers. Terrestrial Energy's CEO, Simon Irish, believes 2025 will be a significant year for nuclear technology, comparable to the explosion of the internet in 1995.

As Aurora's pre-feasibility study preparation is targeted to begin in 2026, the future of nuclear energy, particularly SMRs, seems promising, with the support of SPACs playing a crucial role in its growth and development.