Last Energy Raises $100M for Steel-Encased Micro Reactor

A Resurgence for Nuclear Startups

The landscape is shifting for companies focused on nuclear energy, marking a significant change after years of facing skepticism. A renewed interest and acceptance of nuclear power are now evident.

Bret Kugelmass, founder and CEO of Last Energy, shared with TechCrunch that previously, a substantial effort was required to demonstrate the importance of nuclear energy. Now, the narrative has changed, with widespread recognition of nuclear power as a crucial component of the energy solution.

Last Energy's Approach to Nuclear Power

Last Energy is dedicated to the development of small modular reactors – nuclear power plants designed for efficient mass production, thereby lowering costs. These reactors are engineered to generate 20 megawatts of electricity, sufficient to power approximately 15,000 households.

The company has recently secured $100 million in Series C funding, led by the Astera Institute, with contributions from AE Ventures, Galaxy Fund, Gigafund, JAM Fund, The Haskell Company, Ultranative, Woori Technology, and other investors. This influx of capital demonstrates strong confidence in Last Energy’s vision.

Last Energy is part of a growing wave of nuclear startups attracting investment, fueled by the escalating power demands of data centers. Recent funding rounds include $700 million for Google-backed X-energy and $96 million for Antares. Aalo Atomics also secured $100 million in August to facilitate the construction of its prototype reactor.

Leveraging Existing Technology

What distinguishes Last Energy is its strategic utilization of a pre-existing reactor design originally developed by the government. The foundational design for this pressurized water reactor was initially implemented in the NS Savannah, the world’s pioneering nuclear-powered merchant ship.

The NS Savannah’s power plant was considerably smaller, approximately one-tenth the size of Last Energy’s intended commercial reactor. Kugelmass indicated that the company’s refined design is projected to produce 20 megawatts of electricity.

Pilot Project and Future Production

The company is initiating with a smaller-scale project: a 5-megawatt pilot reactor located on a site leased from Texas A&M. The recent funding will completely cover the costs of this pilot project and enable the company to begin delivering its initial commercial products.

Last Energy anticipates activating the pilot reactor next year, with the 20-megawatt commercial-scale unit expected to enter production in 2028.

Innovative Reactor Design and Waste Management

A unique aspect of Last Energy’s reactor design is its intended lifespan without servicing. Each reactor core will be permanently sealed within 1,000 tons of steel, an investment estimated at around $1 million.

Kugelmass notes that while concrete is often considered cheaper, nuclear-grade concrete presents a different cost profile. The reactors will be delivered with a six-year supply of uranium, and the steel casing will provide complete containment, requiring only electrical and control connections.

Heat generated by the fission process will warm the steel, and water circulating around the exterior will capture this heat to drive a steam turbine.

Upon the reactor’s decommissioning, it will remain on-site, with the steel chamber functioning as a waste cask, thereby eliminating the need for separate waste disposal procedures.

Cost Reduction Strategies

The company believes this approach, combined with advancements in manufacturing, will contribute to lowering the cost of nuclear power. While Kugelmass refrained from specifying a precise price target, he referenced the trend in other industries where prices are halved with each tenfold increase in production.

He acknowledged that nuclear energy may not achieve the same level of cost reduction due to regulatory requirements, but anticipates a similar positive trend. Last Energy focuses on scaling production to tens of thousands of units.