Terra Innovatum (NKLR) just completed a SPAC merger on October 10 to join the squad of nascent nuclear energy companies on the public market. Like several of its competitors, it has yet to launch its own reactor, but its timeline aims for 2028. Its CEO, Alessandro Petruzzi, joined Market On Close to discuss the company.

Its flagship product is the SOLO reactor, “the world’s first micro modular nuclear reactor, commercially deployable anywhere globally by 2028.” Other companies are working on micro reactors as well, but Terra Innovatum says SOLO will be a 10x10 meter cube that requires no emergency zone area and can output 1 MW of electric and 5 MW of thermal energy. It can operate for 15 years without refueling, and they estimate the levelized cost of electricity to be $0.07 per kilowatt hour.

The biggest concerns around nuclear energy include safety and speed of deployment. Terra says that SOLO is “incapable of melting or exploding” because of its decoupled cooling and moderation functions. It uses gas cooling, which involves continuously pushing air through the reactor to keep it at temperature; the other way is to use liquids, which then must be cleaned.

Another feature of the SOLO reactor is that it is designed to be a bridge between traditional nuclear fuels and the fuels of tomorrow. Several companies, including Lightbridge (LBTR) are working on more advanced fuel options, including recycling old nuclear waste.

Electric power is what brought humanity into the modern age – one of the greatest inventions in human history. However, its distribution is still lopsided, both at home and abroad. Think of how power can go down during natural disasters, or the way the grid is stretched in territories like Texas.

Coal plants need a steady supply of coal, which will eventually run out. Wars have been fought over oil access. Solar and wind power are both dependent on the weather. From a purely practical perspective, a reactor that can run for 15 uninterrupted years without needing to refuel, thus obviating the need for that fuel supply chain, with the ability to be deployed anywhere, is tempting.

Even without electricity-hungry industries like crypto or AI, the world would need to take this next step sooner or later. However, we’re at an interesting point in the development timeline where there are many upstart players without proven successes. Oklo (OKLO) is one of the names getting buzz in the space right now, and there is room for more.

A small modular reactor company will win on its ability to get contracts and deploy quickly and safely. Terra Innovatum says its key is its ability to produce its SOLO reactors in existing factories. In its investor deck, it narrows down the industry by factors: power capabilities, manufacturing capabilities, safety features, and ability to run on cheap fuel. It names itself the only one that can claim all four.

Nuclear is also a heavily regulated industry, for obvious safety reasons. Companies have a lot of hoops to jump through before bringing reactors to market. Investors might want keep their eye on government approval timelines as well.

Due to its recent debut, Terra Innovatum has not published any quarterly results for investors to get a picture of its finances. Investors will be keeping an eye out for the first report; it has reached a valuation of $1.1 billion since coming to market. It has multiple partnerships for deployment and its first site picked out in Rock City in Valmeyer, IL.

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