Blue Energy raises $380M to build grid-scale nuclear reactors in shipyards

As the demand for electricity surges due to increasing electrification and the expansion of AI-driven data centers, the energy sector is exploring innovative solutions to alleviate the strain on the grid. Among these, nuclear power is being reconsidered as a viable option, despite the challenges faced by recent projects in the U.S. that exceeded budgets and timelines. Jake Jurewicz, the co-founder and CEO of Blue Energy, is optimistic about the future of nuclear energy. His startup aims to transform the construction of nuclear reactors by utilizing shipyards, which are adept at managing large quantities of steel and can facilitate the transportation of completed reactors to their designated sites. "The technology we commonly use today, known as light water reactors, was initially developed for nuclear submarines," Jurewicz explained. "There has always been a precedent for prefabricating these reactors in a shipyard environment." To initiate the development of its inaugural power plant—a 1.5 gigawatt facility set to commence construction in Texas later this year—Blue Energy has successfully raised $380 million in capital, a combination of equity and debt. This funding round was spearheaded by VXI Capital, with contributions from At One Ventures, Engine Ventures, and Tamarack Global. Distinct from many of its competitors, Blue Energy is not focusing on designing a new type of reactor; instead, the company is reimagining the construction methods for existing reactors and power plants. Jurewicz drew inspiration from Venture Global's innovative approach to building liquefied natural gas export terminals, which significantly reduced project timelines. "They managed to cut the construction schedule in half, which was a game changer," he stated. By relocating most of the specialized construction work to shipyards, Blue Energy aims to create a more controlled environment that could lead to automation and substantial cost reductions. Once the reactor and its components are fabricated in the shipyard, Blue Energy plans to transport them to their installation locations using barges. While this method may restrict the number of potential sites, the company can still navigate rivers to reach various regions across the U.S., Europe, Africa, and Asia. Jurewicz noted, "A significant portion of our population and projected load growth is centered around waterways." Blue Energy's innovative approach is garnering attention from project financiers. "We have been in discussions with several large infrastructure funds and banks, including three major project financing institutions that have expressed interest in our proposals, indicating they believe our model is viable for project financing," Jurewicz remarked. The core challenge, according to Jurewicz, lies in reducing the exorbitant construction costs that have plagued the nuclear sector in recent decades. "The fundamental issue with nuclear energy isn't the technology itself; it’s about making construction costs and timelines predictable and manageable," he emphasized.