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Here’s what you need to know about the nuclear power comeback — including what’s going on, what’s new this time, and is it safe?

For a while there, nuclear energy looked like it was on its way out. After taking off post-World War II, it lost momentum toward the dawn of the 21st century, when sagging public support and mounting costs led to dozens of cancellations in the U.S. and drove the rate of new proposals off a cliff. Only a few reactors have been built in the U.S. this century; the most recent, Georgia Power’s Plant Vogtle units 3 and 4, were years behind schedule and billions of dollars over budget. Vogtle-3 came online last summer, with Vogtle-4 — which was delayed even further by an equipment malfunction — expected to follow early this year.
It’s funny how time works, though. With demand for reliable zero-carbon energy rising, a new wave of nuclear developers is trying to recapture some of the industry’s long-lost momentum. They’re entering the race to net-zero with big ambitions — and much smaller reactor designs. Whether you’re wondering about the state of the U.S. nuclear power sector, what’s new about new nuclear, where the nuclear waste is going, and of course, whether it’s safe, read on.
Let’s start with the basics.
Nuclear reactors generate electricity using a process called fission. Inside the reactor’s core, a controlled chain reaction splits unstable uranium-235 into smaller elements; that process releases heat — a lot of heat.
The reactors in today’s U.S. nuclear fleet fall into two categories: boiling water reactors and pressurized water reactors. Each circulates water through the reactor core to manage the temperature and prevent meltdowns, and both use the heat produced by fission to create steam that powers turbines and thereby generates electricity. The main difference is in the details: Boiling water reactors use their coolant water to produce electricity directly, by capturing the steam, whereas pressurized water reactors keep their coolant water in a separate system that’s under enough pressure to prevent the water from turning to steam.
Some experimental reactors and newer commercial designs use different cooling systems, but we’ll get into those later. Lastly, while nuclear energy is not considered renewable, in the sense that it relies on a finite resource (enriched uranium) for fuel, it is a zero-emission energy source.
The sector emerged in the late 1950s and expanded rapidly over the next several decades. At its peak, the country’s nuclear fleet included 112 reactors — a number that has declined to about 90 today. Most of the surviving plants were built between 1970 and 1990.
The shrinkage has partly to do with the nuclear disarmament movement, which arose during the Cold War and grew to encompass nuclear power development, as well. (As it happens, much of the present day environmental movement has its roots in anti-nuclear activism.) Then there was the partial nuclear meltdown at Three Mile Island in 1979, which intensified existing public opposition to nuclear energy projects. That growing pushback, combined with reduced growth in electricity demand and the significant up-front investments nuclear plants required, caused some projects to be scrapped and fewer to be proposed. The Chernobyl nuclear disaster in 1986 seemed to confirm everyone’s worst fears.
Interest began to reemerge in the U.S. in the early 2000s as the budding public awareness of climate change cast doubt on the future viability of fossil fuels, but the 2011 Fukushima nuclear accident quashed many of those plans. The last U.S. nuclear plant to start up before Vogtle-3 entered construction in 1973 but was suspended for two decades before its completion in 2016.
As of 2022, 18.2% of U.S. electricity came from the country’s remaining nuclear reactors, according to federal data. That’s less than we’ve seen in decades.
The share of nuclear power on the grid has been slowly dwindling as aging reactors are shut down and other resources — mainly natural gas and renewables — have taken on a greater proportion of the country’s electricity-generating burden. The share of electricity from renewables surpassed energy from nuclear for the first time in 2021; in 2022, renewables contributed 21.3% of U.S. electricity.
Like coal and gas plants (and renewables when paired with sufficient storage), nuclear provides baseload power — meaning it sends electricity onto the grid at a consistent, predictable rate — as opposed to sources like wind and solar on their own, which provide intermittent supply. Electric utilities depend heavily on nuclear plants and other baseload resources to match supply with continuously fluctuating demand, accommodating the variability of wind and solar without sending too much or too little power onto the grid, which would cause power surges or blackouts.
Generating electricity using nuclear fission remains a divisive issue that cuts across partisan lines. In the inaugural Heatmap Climate Poll, nuclear came in a distant last among clean energy sources people feel comfortable having in their communities.
Some major environmental groups like the Sierra Club and Greenpeace maintain that the risk of serious disasters at nuclear power plants poses an unacceptable risk to communities and ecosystems. Others, including the Nature Conservancy, view it as a reliable low-carbon energy resource that’s — crucially — available to us today, while promising but immature options such as long-duration energy storage are still catching up.
Historically, nuclear has caused far fewer fatalities than fossil fuels, which generate all kinds of toxic, potentially deadly pollution — and that’s without factoring in their contribution to climate change and its associated disasters.
The companies now hoping to pioneer a new generation of nuclear reactors in the U.S. say their designs incorporate the lessons learned from the accidents in Chernobyl and Fukushima, putting even more safeguards in place than the fleet of reactors operating across the country today. (There’s still a debate over whether the proposed reactors will actually be safer, though.)
Spent uranium fuel is radioactive, and will remain radioactive for a very long time. As a result, there’s still a lot of disagreement about where that waste should go.
The federal government tried in the early 2000s to create a national repository in Nevada’s Yucca Mountain, but the project was stopped by intense local and regional opposition. The Western Shoshone, a tribe whose members have long faced exposure to radioactive fallout from nearby nuclear tests, sued the federal government in 2005. Harry Reid, a former U.S. Senator from Nevada who served as Majority Leader from 2007 to 2015, also fought against the repository.
In the absence of a central repository, the waste produced by nuclear plants is usually stored in deep water pools, which keep the spent fuel cool, or in steel casks onsite to keep the radiation from escaping into the surrounding environment.
If a repository eventually opens, some existing waste will likely be moved out of temporary storage and relocated there.
In short, the concrete behemoths that have long been the norm in the U.S. are really, really expensive to build. They also — like the two new Vogtle reactors — have a tendency to go way over their deadlines and budgets. That makes the electricity nuclear plants generate particularly expensive.
The vast majority of U.S. coal plants were built during the same few decades as most of the country’s nuclear reactors. But when utilities started to face more pressure to reduce their carbon emissions, toppling coal’s reign over the power sector, utilities wound up preferring to build cheaper — and, at least at the time, less controversial — natural gas power plants over nuclear power plants.
But public opinion is beginning to shift. About 57% of American adults favor building new nuclear power, a Pew Research Center survey found last year, compared with 43% in 2016. Though support is higher among Republicans than Democrats, it’s on the rise within both parties.
Today’s electric grid is a far cry from the 20th-century grid that traditional nuclear reactors were built for, and the new reactor models that are making the most headway reflect those changes. In general, these designs are smaller, cheaper (at least on paper), and more flexible than those already in operation.
Unlike traditional reactors, which generally require a lot of custom fabrication to be completed at the project site, small modular reactors — such as the ones being developed by NuScale Power — have components that are meant to be made in a factory, assembled quickly wherever they’ll operate, and combined with other modules as needed to increase power output. Fast reactors (so-named for their highly energized neutrons), like Bill-Gates-fronted TerraPower’s Natrium design, circulate coolants other than water through the core. (Natrium uses liquid sodium.)
Advocates of next-generation nuclear power are optimistic that the first such reactors will come online before the end of the decade. Several of the leading proposals have run into financial and logistical troubles over the last couple of years, however. In November, NuScale canceled its flagship project at the Idaho National Laboratory. It had been on track to be the first commercial small modular reactor built in the U.S. but was thwarted by rising costs, which caused too many expected buyers of its electricity to pull their support.
Nuclear’s image is recovering globally, too. Some of the companies working on demonstration reactors in the U.S. have been outspoken about wanting to see their designs supplant fossil fuels and provide abundant energy all over the world. Meanwhile, many countries are devoting plenty of their own resources to nuclear power.
Japan, which shuttered its sizable nuclear fleet in the aftermath of the Fukushima accident, is slowly bringing some of its nuclear capacity back online. In December, Japanese regulators lifted an operational ban on the Kashiwazaki-Kariwa Nuclear Power Plant, the largest nuclear plant in the world.
Nuclear power is also enjoying renewed popularity in parts of Europe, including France and the U.K. In France, where the long-dominant technology has faltered in recent years, a half-dozen new nuclear power plants are in the works, and even more small modular reactors could follow. The U.K. is also planning a new wave of nuclear development.
Elsewhere, including in Germany, nuclear hasn’t found the same traction. After delaying the closure of its last three nuclear reactors amid natural gas shortages caused by the war in Ukraine, Germany closed the reactors last spring, eliciting a mixed reaction from environmental groups.
Meanwhile, China has close to 23 gigawatts of nuclear capacity under construction — the “largest nuclear expansion in history,” Jacopo Buongiorno, a professor of nuclear science and engineering at MIT, told CNBC last year.
It’s still early days for most of the world’s next-generation nuclear reactors. With even the most promising designs largely unproven, there’s plenty of uncertainty about where today’s projects will ultimately lead. That makes it tricky to predict what role nuclear power will play in the energy transition over the coming decades.
There’s plenty of interest in building more capacity, however. In December, at COP28, the U.S. and 24 other countries — including Japan, Korea, France and the UK — signed on to a goal of tripling global nuclear energy capacity by 2050 in order to stay on track to reach net-zero emissions by then. Nuclear plants could also be an important source of carbon-free energy for producing green hydrogen, a nascent industry that got a major boost from tax credits under the Inflation Reduction Act.
But the U.S. Energy Information Administration’s most recent capacity forecast projects that the total amount of electricity from the country’s nuclear plants will decline in the coming decades — representing just 13% of net power generation by 2050.
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Current conditions: The Atlantic hurricane season officially began today, in what’s expected to be a relatively mild year • A powerful storm with winds of up to 80 miles per hour is walloping broad swaths of millions of Australians • Temperatures in Oman are approaching 120 degrees Fahrenheit.

The United States’ offshore wind industry is, at this very moment, booming — at least in terms of the turbine arrays finally coming online in recent weeks. But there are no new projects underway as President Donald Trump pulls out all the stops to kill the industry in what I have previously called a death by a thousand cuts. That’s despite the fact that demand for electricity is soaring in the U.S. Luckily for Americans, our nation’s aging network of power grids overlaps with our northern neighbor’s. And Canada is now looking at a potential offshore wind boom. Last summer, Nova Scotia started laying the groundwork for offshore wind projects. Now Ming Yang, the world’s third-largest manufacturer of wind turbines, is considering investing in a project off Canada’s Pacific coast. The proposed project in the Hecate Strait off British Columbia would add up to 2 gigawatts of offshore wind capacity to Canada’s portfolio, according to Renewables Now. It’s part of Ming Yang’s broader push into Western markets, as my colleague Matthew Zeitlin reported last October.
Just days after New York State delayed its carbon-cutting plan and loosened the rules on how it counts greenhouse gases, California mounted its own retreat on climate goals. On Friday, Bloomberg reported that the California Air Resources Board had voted to give as much as $4 billion of free allowances to oil refiners and other industrial polluters to make compliance with the state’s 13-year-old carbon market easier. At least New York Governor Kathy Hochul “had the decency” to signal publicly that she intended to roll back the state’s climate law, said Danny Cullenward, an economist and lawyer who wrote a book on climate policy. “Here in California we do the same in private and call it climate leadership,” Cullenward wrote of California Governor Gavin Newsom and CARB Chair Lauren Sanchez in a post on Bluesky.
Kudos to the Trump administration, then, for being so open about its plans to render the SEC something that might more appropriately serve as an acronym for Salting the Earth of Climate disclosures. Last month, I told you that the Securities and Exchange Commission was reviewing a Biden-era rule requiring companies to disclose the risk climate change posed to their businesses. On Friday, the agency formally proposed eliminating the regulation. “SEC disclosure obligations should comply with the Commission’s statutory authority, be guided by materiality as the North Star, avoid the practical effect of dictating corporate behavior, and be imposed only when the expected benefits justify the likely costs and burdens,” SEC Chairman Paul S. Atkins said in a statement.
Rehlko isn’t a household name, but it used to be: The 106-year-old firm was previously called Kohler Energy. But since spinning out from the titan of American manufacturing of kitchen sinks and bathroom toilets, Rehlko has honed its business as a leading producer and installer of generators and the infrastructure to house the diesel-, gas-, or hydrogen-fired power sources. Now, I can report exclusively for this newsletter, the company is preparing to expand its factory in Wisconsin as its backlog of orders for generators to power data centers stretches beyond 13 months. In an interview on Friday, Rehlko CEO Brian Melka told me that this facility is part of a plan “to increase the size and the output of the business about four to five times, or 400% to 500%, over the next five or six years.” The Wisconsin plant is specifically designed to assemble the company’s “e-frame” product, a generator enclosure that looks like a shipping container and includes the wiring and fire suppression tools needed to safely house one of Rehlko’s proprietary generators, which provide off-grid back-up power to data centers, hospitals, and other large power users. In addition to beefing up its capacity to manufacture more generators and enclosures, the company is expanding its engineering team for larger projects in which Rehlko uses another firm’s gas turbines for full-time power generation.
“We want to maintain that competitive edge, not only to be able to deliver the product faster but also to deliver the entire solution faster,” Melka said. “This is going to significantly increase our capacity as we go into 2027 with this new facility to be able to build many more fully enclosed units. The demand keeps pushing out. We essentially sold out the capacity for that building for 2027 and 2028 before we even signed the lease.”
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Unlike Russia, France, Japan, and China, the U.S. doesn’t recycle its nuclear waste. That is, until now. Roughly half a dozen companies are competing to be the first to create a beachhead for a new recycling industry in the U.S. Now one of those startups, Curio, has kicked off the pre-application process for a Nuclear Regulatory Commission permit. It’s just an inaugural step: Submitting a letter of intent to the agency to establish a docket and start providing documents to the regulator. But Curio plans to build a plant that could process up to 4,000 metric tons of used commercial light water reactor fuel per year. “The initiation of this application process marks a key and decisive moment for Curio and our nation as we commercially deploy what will be the world’s most advanced and capable used nuclear fuel recycling facility based on our game-changing NuCycle technology,” Curio CEO Ed McGinnis said in a statement, referring to the brand of the company’s reprocessing technology that was recently validated by four of the Department of Energy’s national laboratories.
South Korea, meanwhile, wants to start enriching and reprocessing its own fuel, and has garnered support from the Trump administration to do so. In the meantime, the democratic world’s most competent builder of civilian nuclear plants is doing what it does best and starting construction on a new reactor. On Friday, World Nuclear News reported that crews had poured the first concrete for Shin Hanul nuclear plant’s fourth reactor.
In January, I told you when Century Aluminum overhauled its plans to build the first new aluminum smelter in the U.S. to include an investment from an Emirati company. At the time, the Energy Department hailed the deal as a sign that Trump’s tariffs were working. On Friday, Mining.com published a feature building off a report from the advocacy group Industrious Labs that examined the recent push for new aluminum smelting in the U.S. The analysis concluded that, while 50% tariffs bolstered the sector, “access to industrial-scale electricity — and increasingly industrial-scale clean electricity — is the pain point,” said Annie Sartor, senior campaigns director at Industrious Labs. “Aluminum producers are being scooped by data centers and hyperscalers. They can simply pay more for the power.”
Among the more exciting concepts for supplying the market with cheap, clean, and affordable hydrogen is finding the stuff in naturally-formed underground reservoirs, allowing oil and gas drillers to do their thing for a green fuel. Now Oman, the Arab world’s diplomatic equivalent of Switzerland, is making progress in drilling the first wells for natural hydrogen. HyTerra, the Australian startup exploring for hydrogen in the country, told the Oman Observer that the successful pilot well boded well for tapping “one of the best source rock systems” for natural hydrogen yet discovered in the world. Given the latest heat wave in the country, the value of a fossil fuel replacement is likely becoming more obvious.
A group of energy researchers have a three-part prescription for Washington, D.C.’s exploding energy costs.
Washington, D.C. has earned an unwelcome distinction: the largest one-year electricity price increase of any state (or equivalent geographic distinction) in the U.S. Prices there are up 87% over the past five years and 26% in the past year alone, according to new data from MIT and Heatmap News’ Electricity Price Hub. The average D.C. household is now paying $55 more for power each month than it did five years ago.
In the face of this crisis, local officials have done little but blame regional markets, emphasizing the parts of recent rate increases they don’t fully control — generation charges — rather than any proactive measures they could take to offer relief to D.C. households. Meanwhile Exelon, the parent company for Pepco, D.C.’s local utility, has used the crisis to lobby state policymakers across the region for something worse — a return to utility-owned generation, which could leave consumers holding the bag for projects that run over budget or that are built for demand that never materializes.
As residents of Washington, D.C. and energy researchers who helped put together the Electricity Price Hub, we are well aware that the District cannot remake the regional electricity market on its own. But it has meaningful tools to protect ratepayers now.
To be sure, the problems D.C. faces are not entirely of its own making. Rising demand and constrained supply across the Mid-Atlantic have created a wholesale market pressure cooker.
Capacity market prices in the Pepco region, which are set through a regional auction scheme designed to ensure the grid can reliably deliver power when demand peaks, increased more than fivefold in 2025. Those costs are passing through to retail bills. As capacity has come under increasing strain, generation charges in Pepco’s standard supply service have gone up 119% — 33% in the past year alone, with yet another rate increase set to kick in on June 1.
That regional dynamic is real. But it does not absolve local officials.
Roughly 30% of Pepco’s average residential bill is made up of charges that fall squarely under D.C. jurisdiction. Distribution charges, the largest of those local components, have risen 57% over five years, and account for 20% of the total rate increase. The D.C. Public Service Commission regulates utilities in the District and must approve Pepco’s rates before they take effect. The commission, in turn, answers to the D.C. Council, the District’s legislature, which confirms its commissioners and oversees its work. These bodies should be examining every dollar of Pepco’s proposed increases. Instead, a D.C. court recently struck down the commission’s most recent rate-hike approval, finding that it had failed to sufficiently scrutinize Pepco’s request.
When a regulator is doing such a poor job that judges have to step in, that is a five-alarm signal. Yet there is a workable action plan for the Council and the PSC to rein in costs and ease the burden on D.C. households.
First, scrutinize distribution charges aggressively — that is squarely within their jurisdiction. As Pennsylvania Governor Josh Shapiro argued in his public letter to utility leaders last month, the PSC should require Pepco to justify every additional dollar of revenue requested in plain language. That means using transparent, replicable data and analysis to show why it’s needed, the alternatives considered, and how the proposed spending will concretely benefit consumers. To support this, the D.C. Council should ensure that the PSC, the Office of the People’s Council, and relevant state agencies are adequately resourced and positioned to engage with and probe Pepco’s arguments in rate proceedings.
Second, force transparency into how Pepco procures power. The public has remarkably little visibility into what makes up generation charges for the utility. For example, how much of the total cost is attributable to capacity prices, energy procurement, administrative costs, and compliance with the District’s Renewable Energy Portfolio standard? And what changes could D.C. consider to the competitive procurement process or RPS eligibility requirements to mitigate costs? Officials can’t manage what they can’t measure.
Third, attack demand by making it easier for customers to generate their own supply. High and unpredictable interconnection fees, process delays, and other administrative hurdles add unnecessary costs and contribute to the above-average cost of solar in D.C.. The D.C. Council and PSC can incentivize distribution-level solar battery deployment by cutting permitting and interconnection costs and improve cost transparency and streamline interconnection reviews to speed up the process of installing solar and storage.
None of these moves alone will reverse five years of rate increases. But together they would put real downward pressure on bills and signal that the city is serious.
What officials should reject — across the region — is Exelon’s push for utility-owned generation. In practice, it could create a generation subsidiary tomorrow. The reason it wants its rate-regulated distribution utility to do so instead is that this would let it earn a guaranteed return on costs it currently just passes through, while shifting the risk of cost overruns, schedule slips, and overbuilt capacity from shareholders to ratepayers. It would also hand the utility an information advantage over independent power producers, suppressing the competition the market relies on to keep prices honest. More profit, less risk, less competition. A great deal — for the utility.
The D.C. Council recently passed emergency legislation pausing utility disconnections for residents with unpaid balances under $1,000. That is a humane stopgap as we head into summer, but it is not a strategy. Neither is anything that has been proposed during the current mayoral race, in which leading candidates have attacked each other’s records instead of offering a plan to lower bills.
D.C. residents do not need more blame-shifting. The choice in front of the council and the PSC is concrete: Scrutinize what is in their jurisdiction, force the transparency they have the authority to require, accelerate the cheapest sources of new supply, and refuse to subsidize a Pepco business model that turns ratepayers into the underwriters of utility risk. That is the test of whether they meet this moment seriously.
On Thea Energy’s $100 million Series B, plus more of the week’s big money moves.
Nuclear is once again a dominant theme this week, with fusion startup Thea Energy landing a $100 million Series B that will help it expand its magnet manufacturing capabilities. While $100 million is nothing to scoff at, it somehow sounds modest alongside some of this year’s other deals, which include a $450 million Series A for Inertia Enterprises and $240 million for Shine Technologies. This week also brought the news that small modular reactor startup Newcleo plans to go public via SPAC later this year, bringing to mind the exuberance of the 2021 SPAC boom, in a deal expected to net a cool $429 million.
Elsewhere, gridtech company Utilidata raised fresh capital after (surprise!) pivoting to the data center market, while a standalone battery storage developer and operator is betting there’s still plenty of money to be made in the increasingly crowded ERCOT market.
Thea Energy officially joined the growing ranks of fusion companies to surpass $100 million in total funding this week, raising a $100 million Series B round led by the U.S. Innovative Technology Fund to scale its magnet manufacturing operations as it targets a demonstration reactor by 2030. Thea is a part of the Department of Energy’s Milestone-Based Fusion Development Program, which seeks to accelerate efforts for commercial fusion power. In January, the DOE certified Thea’s preconceptual pilot plant design, making it the first of the program’s eight awardees — who will split $46 million in federal funding — to see its reactor architecture validated.
Unlike many top-funded fusion startups, which are building donut-shaped tokamak reactors, Thea Energy is betting on a stellarator design. Traditional stellarators resemble a helical tokamak, which require manufacturing and installing dozens of huge, twisted magnets, but Thea’s approach deviates from the norm. Instead, it relies on hundreds of small, planar magnets arranged in the more familiar donut-shaped configuration, which the company’s artificial intelligence software controls individually. That enables Thea to create the same complex magnetic field within a far simpler and more manufacturable shell.
Thea plans to use the new capital to build a second facility in New Jersey to complement its existing lab and to double its headcount as it seeks a site for its demo reactor later this year. The startup is aiming to bring its subsequent commercial pilot online by 2034, on par with the timeline laid out by fusion industry leader Commonwealth Fusion Systems. According to Gaetano Crupi, USIT founder and billionaire investor Thomas Tull “believes the stellarator is the right architecture for commercial fusion, and Thea Energy is the company that makes it commercially viable.” As Crupi put it in a press release, that’s because “Thea Energy’s breakthroughs shift complexity from precision mechanical fabrication to software-defined controls.”
Newcleo is the latest small modular reactor startup seeking a quick pathway to the public markets via a SPAC merger, announcing plans to list on the Nasdaq in the second half of the year after merging with a blank-check firm. The deal values the European fuel and reactor developer at $2.4 million, and is expected to deliver about $429 million in fresh capital. It comes just months after Newcleo raised $88 million in a growth financing round as the company expands into the U.S. market while continuing to fund projects across Europe.
Newcleo stands out in the crowded SMR field through its fuel and cooling strategy. It plans to run its 200-megawatt reactors on recycled fuel made from nuclear waste products like recovered plutonium and depleted uranium, and cool its reactors with liquid lead rather than water. Because liquid lead has such a high boiling point, lead-cooled reactors can operate at atmospheric pressure, reducing the need for the complex, high-pressure systems used in conventional nuclear plants and potentially improving safety along the way.
The company has already raised over $760 million to date, and CEO Stefano Buono told the Wall Street Journal that the pending SPAC could carry it through 2028 or 2029. Even that won’t be enough, however, for Newcleo to reach its target of opening a fuel factory by 2031 and bringing a commercial reactor online the following year. Not to mention that SPACs — a once rare go-to-market strategy — have a checkered history in the SMR industry. After NuScale went public via SPAC in 2022, its flagship project collapsed, taking its stock down with it and underscoring the risks that pre-revenue companies face when their early failures unfold in the public markets. On the other hand, shares of Sam Altman-backed startup Oklo’s have surged since it went public via SPAC in 2024, reaching a market cap over $11 billion, though it also has yet to build a reactor.
Newcleo’s capital push may also be tied to its strategic partnership with Oklo, as it has preliminary plans to invest up to $2 billion to develop advanced nuclear fuel facilities in the U.S. in partnership with the SMR pioneer. Earlier this week, the DOE selected Oklo — and by extension, Newcleo — to enter “advanced negotiations” to receive surplus weapons-grade plutonium for use in reactor fuel.
What’s that I hear? Another climate tech company has pivoted to the data center market? While Utilidata — an artificial intelligence-powered gridtech company — initially set out to give utilities granular insight into household-level electricity usage and grid data, it’s now raised a $40 million extension round to accelerate its shift into the data center market. As I wrote following last year’s initial $60 million tranche of Series C funding, Utilidata initially set out to get its hardware module inside residential smart meters — which it managed to do at pilot scale — to enable faster fault detection and eventually even automate load management at the household level.
Now, Utilidata is taking this same principle and applying it to the booming data center market, where so many climate tech companies are finding their first customers. The company developed its AI platform in collaboration with Nvidia, installing its modules on server racks to help data centers optimize power allocation across its facility. The company says it measures power consumption a million times per second, such that if usage on one rack is low, it can reroute electricity to parts of the data center that need it. Much like electric grids, data centers also overbuild their capacity to ensure they can handle sudden spikes in demand or hardware failures. Utilidata wants to tap into that headroom by managing power flow in real time.
Utilidata’s first commercial data center deployment is set to go live next month in Montreal in partnership with European AI cloud provider NexGen Cloud, with the startup targeting a 50% increase in the data center’s usable processing power. It also plans to use this latest funding to increase headcount by 25% this year as it builds out operations at its new Ann Arbor headquarters, which opened in February.
In some later-stage funding news, battery energy storage developer, owner, and operator Goshe Energy Storage just secured up to $40 million in strategic financing from S2G investments. As I wrote last week, S2G recently raised a $1 billion fund aimed at helping growth-stage companies commercialize, though this latest commitment actually comes from a different arm of the firm — its Special Opportunities team. This division focuses on non-dilutive financing, in this case providing Goshe with a HoldCo loan backed by the company’s portfolio of energy storage projects. Rather than lending to a specific project, a HoldCo loan gives Goshe flexible capital that can be used to fund its broader growth.
Founded in 2022, Goshe specializes in acquiring late-stage battery storage projects and getting them over the finish line by securing capital and managing the construction process into commercial operations. Thus far, all of its announced projects are in Texas’ ERCOT electricity market. Alongside this financing announcement, Goshe said that its first project — a 100-megawatt battery storage plant in Bexar County, Texas — is now fully operational after securing $288 million in project financing. The company also expects to bring its second project, a 180-megawatt storage facility, online in the following few months, with two additional ERCOT projects slated to begin construction later this year.
This funding is the latest sign that infrastructure investors have grown comfortable backing battery energy storage projects, with a record 24.3 gigawatts of new battery storage capacity projected to come online in the U.S. this year alone. The wholesale ERCOT market, however, is no longer the guaranteed moneymaker that it was just a few years ago. Between January 2024 and January 2026, ERCOT more than tripled its battery storage capacity, driving battery revenues down as the market has become increasingly crowded. In this landscape, there may be a growing number of stranded projects for Goshe to acquire, though it’ll also have to be increasingly selective.