X-energy rides nuclear wave, raises $700M Series D

X-energy, a pioneering nuclear startup, has successfully secured $700 million in a Series D funding round, as reported by TechCrunch. This latest investment comes just months after the company increased its Series C funding from $500 million to $700 million, culminating in a remarkable total of $1.4 billion raised over the past year alone. To date, X-energy has amassed a substantial $1.8 billion in funding. The fresh capital is earmarked for enhancing the supply chain dedicated to X-energy's small modular reactors (SMRs). Currently, the startup boasts orders for 144 SMRs, which are designed to produce a combined output of 11 gigawatts of electricity. Notable clients include tech giant Amazon, chemical leader Dow, and the British energy firm Centrica. Leading this funding round is Jane Street, a participant in the previous Series C expansion. Other notable investors include Ares Management funds, ARK Invest, Corner Capital, Emerson Collective, Galvanize, Hood River Capital Management, NGP, Point72, Reaves Asset Management, Segra Capital Management, and XTX Ventures. X-energy focuses on developing advanced high-temperature, gas-cooled reactors, a technology recently utilized in Japan and China. Each of its Xe-100 reactors is capable of generating 80 megawatts of electricity, using billiard ball-sized, carbon-coated pebbles that contain uranium particles as fuel. Helium gas circulates around these pebbles, absorbing heat that is then converted into electricity via a steam turbine. The resurgence of interest in nuclear energy from tech companies and data center developers has fueled X-energy’s growth. Amazon's Climate Pledge Fund was instrumental in the initial phase of the Series C funding. Additionally, Amazon has committed to purchasing over 600 megawatts of nuclear capacity from X-energy in the Pacific Northwest and Virginia, with operational reactors expected by the early 2030s. This partnership could potentially lead to the deployment of up to 5 gigawatts by 2039. X-energy finds itself in competition with several other SMR startups striving to revitalize the nuclear sector in the United States. While many proposed designs show promise, only a few SMR power plants have been completed thus far, none of which are located within the U.S.