Amazon-backed X-energy files to raise up to $800 million in IPO

Nuclear energy startup X-energy began its investor roadshow on Wednesday, working to go public, and setting its price target between $16 and $19 per share, according to Documents submitted With the US Securities and Exchange Commission. If included in the cap, the startup could net $814.3 million.

Energy X Its peers have been riding a renewed wave of interest in fission energy as demand for electricity rises on the back of artificial intelligence data centers and community-wide electrification.

Amazon is one of X-energy’s biggest supporters. The tech giant led a $500 million C-1 round and pledged to buy Up to 5 GW Nuclear energy from the company by 2039.

The IPO is sure to be a relief to X-energy investors, who have invested about $1.8 billion in the company, according to PitchBook. The startup had previously attempted to go public via a reverse merger with a special purpose acquisition company, but both parties failed She canceled the deal In 2023 as the SPAC craze fades.

The X Power Reactor is what is known as a high-temperature, gas-cooled reactor. Inside, uranium encased in ceramic and carbon balls is cooled by helium gas. The gas then transfers the heat to the steam turbine ring to generate electricity. The fuel design, known as TRISO, is expected to be safer than previous fuel arrangements, although it is not widely used today.

The startup said Its SEC filing It is already involved in a patent dispute with another company that recently went bankrupt. Ultra Safe Nuclear Corporation (USNC) goes bankrupt in 2024, and its assets are purchased in bankruptcy To form a standard nuclear. X-energy claims that USNC infringed its fuel manufacturing patents and that the matter was not resolved to its satisfaction during the bankruptcy proceedings.

Outside China, development of new nuclear reactors has been halted due to delays and cost overruns. A new group of startups hopes that by shrinking reactors, they can overcome some of the challenges facing traditional designs.

None of the emerging small modular reactor companies have built a power plant yet, although several are racing to meet the Trump administration’s July 4 deadline.

While many may miss the arbitrary deadline, they will likely still be able to achieve criticality, the moment at which fission reactions become self-sustaining.

But the road from bioenergy plants to profitable power plants is likely to be long. Mass manufacturing can help reduce costs, but it usually takes a while About a decade ago Let the process begin to pay dividends. Moreover, the number of reactors these companies plan to build may be more than what other companies have attempted, but it may not be high enough to reap the true benefits of mass manufacturing.

XEnergy expects that by the time its reactor production technology matures – what experts call the “number one reactor of its kind” – it will be able to reduce costs by 30% compared to the first reactor of its kind. Investors should pay close attention to the cost of the first reactor. This can make or break a company’s prospects.