X-energy: $500 Million (Series C-1) Raised To Support Advanced Small Modular Nuclear Reactors

By Amit Chowdhry • Oct 21, 2024

X-Energy Reactor Company (a leader in advanced nuclear reactor and fuel technology) announced a Series C-1 financing round of about $500 million, anchored by Amazon.com. Citadel Founder and CEO Ken Griffin, affiliates of Ares Management Corporation, NGP, and the University of Michigan join Amazon’s Climate Pledge Fund in the financing round.

This funding will help meet growing energy demands by funding the completion of X-energy’s reactor design and licensing and the first phase of its TRISO-X fuel fabrication facility in Oak Ridge, Tennessee. Plus, the funding will support future carbon-free projects using X-energy’s Xe-100 advanced small modular nuclear reactors (SMRs).

Amazon and X-energy are also collaborating to bring over 5 gigawatts of new power projects online across the United States by 2039, representing the most significant commercial deployment target of SMRs. These efforts will help meet growing energy demands in key locations through direct project investments and long-term power purchase agreements to help power Amazon operations. Further, X-energy and Amazon plan to establish and standardize a deployment and financing model to develop projects in partnership with infrastructure and utility partners.

These companies will initially support a four-unit 320-megawatt (MW) project with regional utility Energy Northwest in central Washington with the option to increase that project to 12 units and 960 MW. And Amazon is immediately committing a direct investment in the Energy Northwest project to fund early development work that X-energy will perform.

X-energy’s Xe-100 advanced small modular reactor and TRISO-X fuel are among the safest and most reliable clean energy technologies. And each reactor unit is engineered to provide 80 MW of electricity and is optimized in multi-unit plants ranging from 320 MW to 960 MW. This simplified modular design is road-shippable and intended to drive geographic scalability, accelerate construction timelines, and create more predictable and manageable construction costs. Plus, X-energy’s advanced reactor technology has notable efficiency and resiliency to meet the requirements of energy-intensive data centers, enabling Amazon to align its growth and carbon-free energy goals.

X-energy is also developing its initial Xe-100 plant at Dow Inc.’s UCC Seadrift Operations manufacturing site on the Texas Gulf Coast. Supported by the U.S. Department of Energy’s (DOE) Advanced Reactor Demonstration Program (ARDP), the project will be the first grid-scale advanced nuclear reactor deployed to serve an industrial site in North America, providing the site with zero-carbon emissions power and high-temperature steam. ARDP also supports X-energy’s first-in-the-nation commercial facility to exclusively manufacture TRISO fuel, which DOE calls “the most robust nuclear fuel on Earth.”

Latham & Watkins is acting as legal advisor to X-energy, and Moelis & Company is acting as exclusive financial advisor and placement agent.

KEY QUOTES:

“This collaboration between Amazon and X-energy is a significant step toward accelerating advanced nuclear technologies that can help us bring new sources of carbon-free energy to the grid cost-effectively and safely. We need smart solutions that can help us meet growing energy demands while also addressing climate change. X-energy’s technology will be integral in helping achieve this, and is an important step in Amazon’s work to achieve our Climate Pledge commitment to be net-zero by 2040.”

-Kevin Miller, Amazon’s Vice President of Global Data Centers

“Nuclear is an important source of clean and reliable power that our nation needs to meet the growing demand for energy. X-energy provides an impactful solution to a critical challenge – and the support Amazon, Dow, and other major corporations have provided underscores its potential and merit.”

-Ken Griffin, Founder and CEO of Citadel, whose affiliate is one of the lead investors in this round

“Amazon and X-energy are poised to define the future of advanced nuclear energy in the commercial marketplace. To fully realize the opportunities available through artificial intelligence, we must bring clean, safe, and reliable electrons onto the grid with proven technologies that can scale and grow with demand. We deeply appreciate our earliest funders and collaborators, notably the U.S. Department of Energy and Dow Inc. With Amazon, Ken Griffin, and our other strategic investors, we are now uniquely suited to deliver on this transformative vision for the future of energy and tech.”

-X-energy CEO J. Clay Sell

“The investments from Amazon, our Series C-1 funders, and valued partners like Dow and the U.S. Department of Energy underscore X-energy’s leadership in commercializing SMR technology and delivering the clean, safe, affordable, and reliable power our world needs now. Reaching this milestone is a testament to the dedication of the X-energy team and the essential energy solutions we’ve built. We remain focused on bringing our advanced reactor technology to market, enabling a future powered by sustainable, zero-carbon energy.”

-Kam Ghaffarian, Ph.D., Founder and Executive Chairman, X-energy

“Ares is proud to further strengthen its support for X-energy and the advancement of nuclear technologies as it enters this partnership and significantly accelerates its mission to support the transition to a lower-carbon economy. Through our work together over the last two years, we are confident in X-energy’s ability to capitalize on the rapidly increasing demand for scalable clean energy sources and drive long-term, sustainable value for its stakeholders.”

-Allyson Satin, Partner, Ares

“NGP recognizes the unique contribution of nuclear energy to reliable, carbon-free, baseload electricity and industrial heat. X-energy has a world-class team, well-tested reactor and fuel design, and committed collaborators in Dow and Amazon who are both leaders in their industries. We are proud to partner with X-energy to bring advanced nuclear energy to market.”

-Maritza Liaw, Partner, NGP

“The University of Michigan has been at the forefront of the energy transition, strategically investing in a diverse portfolio of sustainable and renewable energy and other climate solutions, including utility-scale solar, renewable fuels, and sustainable infrastructure. The U-M Investment Office is proud to partner with X-energy as part of its broader commitment to transitioning to a more sustainable economy. As part of its comprehensive approach to achieving a low-carbon future, the U-M Investment Office recognizes advanced nuclear technologies as a key component to its climate solutions investment strategy, reinforcing its commitment to long-term decarbonization goals.”

-Erik Lundberg, Chief Investment Officer, University of Michigan