In a significant development for the nuclear energy sector, Last Energy has successfully secured $100 million in funding for its innovative steel-encased micro reactor. This milestone highlights a resurgence in interest and investment in nuclear technology, particularly after a prolonged period where such endeavors faced skepticism and challenges.
Bret Kugelmass, the founder and CEO of Last Energy, shared his reflections on this shift in perception during a conversation with TechCrunch. "During the first five years of my journey in nuclear, I found myself constantly explaining the importance of nuclear energy to others," he remarked. "Today, however, the narrative has changed dramatically; people now approach us with an understanding that nuclear is indeed a crucial component of our energy landscape. It's reassuring to see that the conversation has evolved so positively."
Last Energy is at the forefront of developing small modular reactors (SMRs), which are compact nuclear power plants designed for mass production to help lower costs. Each of these reactors is expected to generate 20 megawatts of electricity, which is sufficient to power approximately 15,000 homes, making them a viable option for both urban and rural energy needs.
The company’s momentum has been bolstered by a recent $100 million Series C funding round, led by the Astera Institute, with contributions from notable investors including AE Ventures, Galaxy Fund, Gigafund, JAM Fund, The Haskell Company, and Ultranative, among others. This influx of capital allows Last Energy to join a wave of nuclear startups that have been attracting significant investments lately, driven by the increasing demand for energy from data centers and other industries. For instance, X-Energy, supported by Google, raised an impressive $700 million last month, while Antares secured $96 million shortly thereafter. Additionally, Aalo Atomics recently raised $100 million to develop its own microreactor prototype.
What distinguishes Last Energy from its competitors is its unique approach to reactor design. The company is leveraging a classic reactor model that was originally developed by the government several decades ago. This design was initially created for the NS Savannah, a pioneering nuclear-powered merchant vessel, whose power plant was substantially smaller than Last Energy's planned commercial reactor. According to Kugelmass, their updated version is engineered to yield 20 megawatts of electrical power.
To begin its operations, Last Energy is constructing a pilot reactor with a capacity of 5 megawatts at a site leased from Texas A&M University. The recent funding will not only cover the full costs of this pilot project but also enable the company to initiate the delivery of its first commercial products. Kugelmass anticipates that the pilot reactor will become operational next year, with plans for the larger 20-megawatt commercial unit to commence production in 2028.
Interestingly, Last Energy’s reactors are designed for minimal maintenance throughout their operational life. Each reactor core will be permanently encased in an impressive 1,000 tons of steel, with Kugelmass estimating the material costs to be around $1 million. He noted, "While many assume that concrete would be the more economical choice, that’s not the case when it comes to nuclear-grade concrete."
Once installed, the reactors will arrive pre-fueled with six years’ worth of uranium. In terms of design, aside from connections for electrical and control systems, there will be no additional penetrations in the robust steel casing. The heat generated from fission reactions will warm the steel, allowing water circulating in external pipes to capture the heat and drive a steam turbine for electricity generation.
At the end of the reactor’s operational life, Last Energy intends to leave it in place, utilizing the steel chamber as a waste cask. This innovative strategy aims to simplify waste management, eliminating the need for separate disposal processes.
The overarching goal of Last Energy is to make nuclear energy more affordable through this method, alongside advancements in manufacturing techniques. While Kugelmass refrained from specifying exact pricing, he referenced trends observed in other industries where prices have halved with every tenfold increase in production. "I wouldn't anticipate the same level of cost reduction in nuclear due to inherent fixed costs and regulatory requirements, but we are looking to harness similar efficiencies," he explained. "Our vision is to scale our operations significantly; we’re not thinking in terms of a few units, but rather tens of thousands."
Tim De Chant, a senior climate reporter at TechCrunch, has contributed to various prestigious publications, including Wired, the Chicago Tribune, Ars Technica, The Wire China, and NOVA Next, where he was a founding editor. He also teaches at MIT’s Graduate Program in Science Writing and was awarded a Knight Science Journalism Fellowship at MIT in 2018, focusing on climate technologies and innovative business models in journalism. De Chant holds a PhD in environmental science, policy, and management from the University of California, Berkeley, along with a BA in environmental studies, English, and biology from St. Olaf College.
For any inquiries or outreach, Tim can be contacted via email at tim.dechant@techcrunch.com.
