Dec 20, 2024

A joint venture is being established for the commercialization of Newcleo SMR.

An innovative reactor developer based in France, Newcleo, is set to establish a joint venture with Italy's NextChem to create a new generation commercial power plant utilizing Newcleo's LFR-AS-200 small modular lead-cooled fast reactor.

As per the agreement made with NextChem's parent company, the Italian technology and engineering group Maire SpA, Newcleo will hold a 40% share in the newly formed company of NextChem, which will focus on developing new intellectual property and providing technical services once binding agreements are finalized.

The arrangement will allow NextChem to receive newly issued shares amounting to up to 5% of Newcleo's share capital, contingent on meeting specific milestones. The first milestone is Newcleo joining the joint venture company, while the last relates to the final investment decision from the initial client.

The completion of this transaction is anticipated by the end of February 2025.

NextChem's contribution to the joint venture will include skills, management, engineering resources, and a dedicated commercial platform for implementing LFR-AS-200 projects, while Newcleo will focus on developing its LFR-AS-200 nuclear reactor technology.

NextChem will utilize its expertise to help the joint venture create the extended basic design, procure essential proprietary equipment for the conventional island and the balancing of the nuclear power plant, and offer project management and integration services to Newcleo.

The partners highlighted that the conventional island and balance of plant are critical for converting nuclear energy into electrical power for the grid or supplying chemical districts in line with NextChem's e-Factory model, thereby aiding the chemical industry's decarbonization through the production of low-carbon chemicals and e-fuels.

Additionally, the joint venture will offer integration services to other small modular reactor (SMR) and advanced modular reactor manufacturers that do not compete with Newcleo. This business model aims to facilitate the industrialization of the energy transition for any customer interested in adopting Generation IV nuclear technologies.

Tecnimont, another subsidiary of Maire, has been awarded preferred partner status for project delivery due to its advanced modularization strategy that optimizes construction and planning, resulting in reduced time and costs.

Maire's CEO, Alessandro Bernini, remarked, "This collaboration is a testament to our capability to provide a comprehensive range of services for the energy transition, merging our innovative perspective on sustainable technology solutions with our traditional expertise in integrated engineering solutions." He added, "Today, we mark another milestone in our ongoing journey towards implementing carbon-neutral chemical models underpinned by safe, reliable, and competitive energy supply."

Newcleo's CEO, Stefano Buono, stated, "This joint venture unites the best of our collective expertise and skills to lead the charge in delivering new nuclear technologies. Maire's sustainable technology value proposition through NextChem and its proven international EPC delivery record, along with process optimization and modularization, makes them the ideal partner for the modular design of our Advanced Lead-Cooled Fast Reactors. Their commitment to a circular economy aligns with our goal of closing the nuclear fuel cycle and addressing waste sustainably.

"This venture signifies a new era of collaboration in the sector, which, alongside other partnerships, will be crucial in achieving the energy transition. We are pleased to see significant technology and engineering firms joining the nuclear sector's rapid race towards a decarbonized future."

According to Newcleo's delivery timeline, the first non-nuclear precursor prototype of its reactor is projected to be completed by 2026 in Italy, with the first operational reactor in France expected by the end of 2031, and the final investment decision for the inaugural commercial power plant anticipated around 2029.

Additionally, Newcleo will invest directly in a mixed uranium/plutonium oxide (MOX) plant to supply fuel for its reactors. In June 2022, Newcleo announced it had engaged France's Orano to conduct feasibility studies on the establishment of a MOX production facility.