Nuclear startup Last Energy raises $100M for its steel-encased micro reactor

In a significant boost for the nuclear sector, Last Energy has successfully raised $100 million in its latest funding round, signaling a resurgence of interest in nuclear technology. Bret Kugelmass, the founder and CEO of Last Energy, expressed enthusiasm about the changing perceptions of nuclear energy. He noted that while he once had to advocate for the importance of nuclear power, there is now widespread recognition of its role in addressing energy challenges. Last Energy specializes in the development of small modular reactors (SMRs), which are compact nuclear power plants designed for mass production, thereby lowering costs. Each reactor is expected to generate 20 megawatts of electricity, enough to supply power to approximately 15,000 homes. The recent Series C funding round was led by the Astera Institute, with participation from various investors including AE Ventures, Galaxy Fund, and others. This funding comes at a time when several nuclear startups are gaining traction, driven by the growing energy demands of data centers. Notably, X-Energy, supported by Google, raised $700 million last month, while Antares secured $96 million just weeks prior. Additionally, Aalo Atomics has also raised $100 million to further its prototype reactor development. What distinguishes Last Energy from its competitors is its utilization of a decades-old reactor design originally developed for the NS Savannah, the first nuclear-powered merchant ship. The company’s modernized version is set to produce 20 megawatts of electricity, although it will initially construct a smaller 5-megawatt pilot reactor at a site leased from Texas A&M University. The new funding will support both this pilot project and the launch of the company's first commercial products, with plans to activate the pilot reactor next year and start production of the full-scale unit by 2028. Last Energy’s unique design philosophy involves permanently encasing each reactor core in 1,000 tons of steel, with an estimated cost of around $1 million for the metal. Kugelmass highlighted that this method eliminates the need for servicing during the reactor's lifespan, as the steel chamber will also serve as the waste containment solution once the reactor is decommissioned. By adopting this innovative approach and leveraging advancements in manufacturing, Last Energy aims to reduce the costs associated with nuclear power generation. While Kugelmass refrained from specifying a target price, he noted that industries have historically seen significant price reductions with increased production, hinting at a similar potential for the nuclear sector. He emphasized the company's ambition to think big, aiming for production quantities in the tens of thousands rather than just hundreds.