If you follow local energy news, you know taxpayers invested heavily in the nuclear future of New Brunswick. Now, a Saint John company once slated to build the province’s first small modular nuclear reactor is selling off its assets.
Moltex Energy Canada ran out of money last year and now operates under insolvency administrators. British Columbia based Nuclea Energy Inc. is offering $11.5 million for the distressed assets. This sale price represents a fraction of the $55 million taxpayers invested in the company over the last decade. CBC News first reported the details of this acquisition.
What Nuclea Energy is Buying
Nuclea Energy is purchasing engineering designs, patents, software, intellectual property, and modeling data. The company plans to launch an initial public offering on the New York Stock Exchange. They will use 20 percent of the raised capital to fund the Moltex purchase.
Nuclea focuses on a microreactor design called Morpheus. This technology differs entirely from the stable salt reactor Moltex planned to build. Nuclea targets Arctic communities, data centers, mines, and remote military sites. Their filings make no mention of the original Moltex plan to build a reactor next to the Point Lepreau generating station.
The Future of Nuclear Development in Saint John
The future of a small modular reactor in New Brunswick is unlikely. Moltex CEO Rory O’Sullivan maintains the company will continue to exist.
“New Brunswick is home to Moltex, and we’ve been here a long time,” O’Sullivan told CBC News. “We are looking forward to working with New Brunswick to see if there is a future here.”
However, provincial leaders and experts express serious doubts. Energy Minister Renรฉ Legacy previously stated he prefers separating new electricity generation from local job creation goals.
“We really don’t want the first of a kind,” Legacy said. “New Brunswick is not in a position to take that kind of a risk.”
A recent review panel examining N.B. Power echoed this sentiment. The panel advised the utility to avoid unproven technology and stick to established models like larger CANDU reactors. This approach prevents compounding the utility’s existing financial problems.
Frequently Asked Questions
What exactly is Moltex Energy Canada selling?
Moltex is selling its engineering designs, patents, software, intellectual property, and modeling data to a British Columbia based company.
How much taxpayer money did Moltex receive?
The company received $50 million from the federal government and $5 million from the provincial government to develop its nuclear technology.
Who is buying the Moltex assets?
Nuclea Energy Inc. is purchasing the distressed assets for $11.5 million.
Will a small modular reactor still be built at Point Lepreau?
The prospect is highly unlikely. The new buyer focuses on different markets, and provincial experts advise against investing in unproven nuclear technology.
Was there a condition on the investment by the federal & provincial governments being a quarantee of the return of their investment if the project did not materialize?