Valar Atomics Raises $19M, Announces Pilot Reactor Site

Investment Surges in Small Modular Nuclear Reactors

A significant influx of capital is being directed towards companies involved in the development of small modular nuclear reactors (SMRs). Over the last year, these firms have collectively secured more than $1.5 billion in funding. This surge is driven by the increasing power demands of technology companies, particularly those focused on artificial intelligence model training, and growing governmental commitment to the nuclear industry.

Recent Funding Rounds

Notable funding events include X-Energy’s recent $700 million raise. Additionally, Newcleo, based in Paris, secured $151 million in investment last year. Investments totaling $700 million were also allocated to Oklo, NuScale, and Nano Nuclear, all pursuing comparable SMR projects within the United States.

Valar Atomics: A New Approach to SMR Production

While nuclear fusion remains a long-term goal, SMRs represent a currently viable nuclear technology. Valar Atomics, an SMR startup, has recently completed a $19 million seed funding round to facilitate the development of its initial test reactor. Riot Ventures spearheaded the financing, with contributions from AlleyCorp, Initialized Capital, Day One Ventures, and Steel Atlas.

The "Gigasite" Concept

Valar’s SMR design utilizes a helium-cooled, high-temperature gas reactor. The company intends to establish “gigasites” – facilities analogous to gigafactories used for battery production – to manufacture these reactors. This approach aims to substantially lower the costs associated with nuclear reactor construction, which are traditionally characterized by highly customized, project-specific designs.

Isaiah Taylor, co-founder and CEO of Valar, explained to TechCrunch that the primary obstacle to reactor deployment isn’t the technology itself, but rather the methods used for its implementation. He believes Valar’s “gigafactory” model can address this by adopting an “industrial” rather than “artisanal” approach.

Initial Contracts and Deployment Strategy

The company’s strategy centers on deploying hundreds of SMRs at locations primarily lacking grid connectivity, specifically to power data centers and industrial facilities. Valar has secured an initial agreement with the Philippines Nuclear Research Institute to construct a reactor within the country. This contract outlines a phased approach: piloting a test-scale reactor, followed by the construction of two full-scale reactors, culminating in the operation of the first fully integrated reactor.

“Our plan is to build the first unit, then the second, and the third, which will naturally evolve into a fully functioning factory,” Taylor stated.

Advanced Technology and Potential Applications

Valar’s technology leverages helium gas to achieve temperatures reaching up to 900°C – three times higher than conventional nuclear reactors. This capability enables the efficient production of hydrogen, which can then be combined with captured CO₂ to create low-carbon synthetic fuels for transportation and infrastructure.

“Achieving such high temperatures in a nuclear reactor allows for inexpensive hydrogen production, unlocking numerous possibilities. One such possibility is the creation of synthetic fuels. Our goal is to make both the fuel production process and the reactors themselves affordable,” Taylor explained.

“We completed the design, engineering, and construction of our thermal test unit in approximately ten months. This demonstrates feasibility, considering the first nuclear reactor was built in just eight months back in 1943,” he added.

Leadership and Expertise

Interestingly, Taylor’s grandfather was a nuclear physicist involved in the Manhattan Project. Taylor himself left high school at 16 to pursue studies in software systems and establish startups. The company’s technical operations are overseen by Mark Mitchell, formerly the president of Ultra Safe Nuclear Corporation (USNC), and the leader of the world’s first small modular reactor project in South Africa.

Several team members also come from USNC, including Willem van Rooyen, the head of mechanical engineering.

Favorable Market Conditions

Valar’s ambitious plans are supported by a number of positive developments in the nuclear energy sector. The U.S.’ Inflation Reduction Act has stimulated private investment in clean energy infrastructure. China is also making substantial investments, allocating $440 billion to new nuclear plants. Furthermore, 14 of the world’s largest banks have voiced their support for tripling nuclear energy capacity by 2050.