Europe’s innovative nuclear start-ups are looking to shift operations to the US in search of better financing and stronger government support. They express concern over falling behind well-resourced competitors, particularly Chinese firms, in developing advanced technology.
The interest in the sector has been spurred by former President Donald Trump’s support for nuclear energy and the exciting potential of small modular reactors (SMRs). This enthusiasm has caught the eye of American investors, leading to significant funding for US nuclear developers, which often surpasses what is available to European firms. Many start-ups on the continent are struggling to maintain liquidity.
Some European advanced nuclear developers are contemplating relocating some business activities to the US to thrive in this competitive environment. For example, Newcleo, a Franco-Italian start-up that is working on lead-cooled reactors using nuclear waste, is considering a site in South Carolina for a third of its operations.
“We had zero support in the UK,” said Newcleo’s CEO Stefano Buono, who abandoned plans for the British market due to insufficient government backing for next-generation reactors.
In contrast, UK firm Rolls-Royce has secured funding to construct future reactor fleets, primarily using traditional pressurized water reactors, rather than the more advanced technologies currently being developed elsewhere.
“The US is making significant investments in advanced nuclear technology that Europe is not,” noted Kiki Lauwers, CEO of Franco-Dutch company Thorizon, which aims to enter the growing North American market.
She highlighted the substantial subsidies provided to American nuclear companies, like the $2 billion granted to Bill Gates’s TerraPower to support its first reactor, underlining the financial advantages available in the US.
With limited funding, the French start-up Naarea faced challenges and entered receivership last September. Negotiations for a buyout are currently underway, but the firm had already indicated an interest in moving operations to the US to capitalize on greater opportunities.
In France, where traditional nuclear operator EDF has built numerous reactors over the decades, the push for small modular reactors continues. Despite a lack of sufficient funding for advanced developers, the regulatory environment is slowly evolving, with the EU government promising to allocate more resources for nuclear research.
Though many believe the US is advancing faster, there are those who argue that Europe will produce reliable outcomes. “Europe is a dependable partner,” said Christoph Grudler, a lawmaker in the European Parliament, indicating hope for forthcoming funding opportunities.
As some European start-ups explore operations in the US, they are already noticing beneficial results. Newcleo’s Buono shared that announcing plans to move to the US encouraged their existing investors to commit more funds, reflecting confidence in the business’s future.
Buono cautioned that the upcoming two years are critical for the industry, as prototypes are developed, and acknowledged that many companies may not endure this challenging period. “It’s a tough time, a real ‘death valley,’” he said, as businesses face high stakes in delivering on their promises.