X-energy's Nuclear Power: A $700 Million Boost
X-energy, a nuclear startup, has raised a substantial $700 million in Series D funding, the company announced to TechCrunch. This significant investment comes on the heels of a successful Series C expansion, which saw the company's funding grow from $500 million to $700 million, resulting in a total of $1.4 billion raised in the past year. With this latest round, X-energy has now secured a total of $1.8 billion in funding.
The startup aims to utilize this funding to strengthen its supply chain for small modular reactors (SMRs). X-energy has already secured orders for 144 SMRs, capable of generating a total of 11 gigawatts of electricity. Notable customers include tech giant Amazon, chemical company Dow, and British energy firm Centrica.
X-energy specializes in developing high-temperature, gas-cooled reactors, a design that has been utilized in Japan and China. Each of its Xe-100 reactors can produce 80 megawatts of electricity, fueled by uranium particles encased in carbon-coated pebbles. Helium gas is used to transfer heat from these pebbles to a steam turbine, generating electricity.
The surge in interest from tech companies and data center developers is a trend that X-energy has been riding. Amazon's Climate Pledge Fund led the initial investment in the Series C, and the company has since committed to purchasing over 600 megawatts of nuclear capacity, with reactors expected to come online in the early 2030s. This deal could potentially result in the deployment of up to 5 gigawatts by 2039.
X-energy is not alone in its mission to revive the nuclear industry in the United States. The company is in competition with several other SMR startups, though only a handful of SMR power plants have been constructed, and none are located in the U.S. Despite the challenges, X-energy's innovative approach and strong backing make it a key player in the nuclear power sector.
This funding round was led by Jane Street, which joined as an investor during the expanded Series C. 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.
As the nuclear power landscape evolves, X-energy's focus on SMRs and its commitment to a sustainable energy future position it as a significant player in the industry. The company's ability to attract major investors and secure substantial funding highlights its potential to shape the future of energy production.
