Newcleo

For years, society has grappled with a dilemma concerning cleaner energy production namely, how to meet the growing demand for electricity, while lowering carbon emissions. When it comes to producing energy, traditional nuclear power has consistently proved to be an efficient means of production, though it has often been thwarted by safety, waste, and cost issues. But this gap in conditional energy has made room for a fresh generation of nuclear innovators who are working towards a different nuclear future. 

One of these innovators is a European based startup called Newcleo, founded in 2021 by Stefano Buono, Luciano Cinotti, and Elisabeth Rizzotti, that seeks to transform nuclear energy with a safe, sustainable, and cost effective technology.

The company targets lead cooled fast reactors (LFRs), a next generation modular reactor design from the Generation IV family, which promise a closed nuclear fuel cycle that can recharge nuclear waste using Mixed Oxide (MOX) technology. This innovative methodology not only drastically lowers radioactive waste but also recovers additional energy from materials that would have simply ended up in a landfill. They want a future that has clean, circular and scalable nuclear heat energy.. Newcleo’s innovation is the LFR-AS-200, a modular LFR reactor that is designed to produce 200 MWe and is still being designed at this time. They are also in the process of developing a prototype, and demonstrator reactor, which will be smaller and produce 30 MWe, with its location planned for France by 2031. One of the facilities to support the clean up of the production of nuclear fuel is a plant that is to produce MOX fuel, which we expect to be completed by the end of this decade.Combined, the four projects could create a closed, self-sustaining ecosystem in which nuclear fuel is used in new ways to not only produce more energy but also recycling waste products to be reused in nuclear fuel throughout Europe.

Newcleo's purpose is about more than technology; it is about the accessibility of nuclear power and its environmental remediation. Conventional reactors require water for cooling, while systems that employ lead based cooling systems can have significantly higher efficiency with passive safety systems and lower operational risks. This will entice governments and private stakeholders who are looking for a reliable and low carbon energy source that can address the globe energy crisis.

The Newcleo earning model is based on long-term, infrastructure based revenues associated with the provision of modular reactor units and MOX fuel supply contracts once these reactors begin operation. While the modular reactors operate in prototype, the firm also provides engineering and consulting services for early stage revenue. The pricing strategy is based on lowering prices by utilizing recycled nuclear waste as fuel and the increased cost competitiveness that achieves. Over the long-term, Newcleo plans to generate recurring income with their fuel cycle services, maintenance services for the plants, and ongoing licensing of the technologies required, to create a scalable and sustainable revenue source each time they deploy a reactor. Having raised over €535 million in funding from backers including Exor Ventures, Lingotto, Ingérop, Inarcassa, and Walter Tosto, the company has been quite active financially. In 2024, for further expansion in France and Italy, the company raised €151 in capital, bringing its valuation up to €1.5 billion. Overall, the company has raised a total of $758 million. €200 million is also being invested by the government of Italy to become a principal stakeholder, which reflects the company's growing impact and reputation as one of the most valuable clean energy startups. Though still an early stage company, Newcleo has already begun generating some early stage revenue from engineering and R&D contracts. The company reported about €9 million in revenue in 2023 and about €26 million in the first half of 2024 but remains a net loss company, since most of its spending has come from research and infrastructure. For example, in 2023, the firm had a loss of €57.5 million, which is more than three times its loss in the previous year, and its losses are consistent with the business model of most deep tech companies at the early stage of growth. Newcleo has a strong cash position of €221 million and there is investor backing of the company's long range plans.

Newcleo has 1000 personnel across 19 sites in France, Italy, Switzerland, the UK and Slovakia. This number includes three manufacturing sites and an expanding research and development laboratory site footprint. In 2024, the company secured its position in the European marketplace with a move from London to Paris, its new head office. This also paved the way for the opening of its FASTER innovation center in Chuscan, France, where engineers will be trained and MOX fuel developed. The company is also working on developing new laboratories in Turin, Italy, where they have invested €28 Million. The company's target investment in 2030 is estimated to reach €3 billion to complete its demonstration reactor and MOX fuel factory in France. Newcleo's corporate strategy is to expand its activities across Central and Eastern Europe, using joint ventures in Slovakia and other parts of Eastern Europe, to recycle nuclear waste and to provide modular reactors to the emerging clean nuclear power market.

Newcleo will compete with market entrants at North America's nuclear launchpad, including TerraPower, Natrium, and Moltex Energy, which have a suite of sodium cooled and molten salt reactors in varying degrees of commercialization. Whereas the firm focuses on lead cooled systems and reusing fuel in a closed loop. Newcleo benefits from strong government agendas for low carbon energy and supportive market behaviors in Europe. The company’s plan is to acquire companies, such as Rütschi Group, vertically integrate its manufacturing supply chain to improve margin capture related to both technology development and improve the cost of their nuclear systems. Despite Newcleo's plans, there are challenges, such as the complexity of working through varied technological models, high capital intensity, and regulatory slack in the rollout of next generation nuclear systems.

While there are some significant challenges, the company's long-term vision remains apparent. Stefano Buono, the CEO, states that Newcleo is looking to not only innovate but to change the narrative of nuclear energy and sustainability and the environment: “We want to show to people that with clean, safe, circular nuclear power it's possible.” Newcleo is beating solidly on the emerging nuclear revolution in Europe along with its rapidly expanding team, its billion euro valuation and sustainability focus. As the world ramps up for demand in carbon free power, Newcleo's unique mix of cutting edge technology, circular fuel systems and strategic partnerships across Europe put it as one of the most exciting energy innovators in the next decade.

Click here to access Newcleo's website.