nuclear-news

‘Risk of insolvency’ at parent company of N.B. nuclear developer

Moltex Canada CEO says money problems in U.K. ‘slowed us down’ on small modular reactor development

Jacques Poitras · CBC News ·Apr 17, 2025 

Saint John-based Moltex Energy Canada Inc. is hoping potential new owners for its overseas parent company will breathe new life into its development of small modular nuclear reactor technology in the province.

But the company acknowledges that cash flow problems at its U.K.-based parent company have slowed down those efforts.

There is “a risk of insolvency” at the parent company, Moltex Canada CEO Rory O’Sullivan acknowledged in an interview. 

An administrator is now looking for buyers for the U.K. company’s assets, which include Moltex Energy Canada.

“As a technology development company we need to almost continuously be fundraising to keep progressing technical milestones,” O’Sullivan told CBC News. “And, because we need parent company authorization to raise new capital, we have not got that authorization.

“That has slowed us down. And so that’s why we’re looking forward to new owners as soon as possible.”

The U.K. administrator overseeing the sale, Azets Holdings Ltd., said in a statement that the holding company had been unable to get majority shareholder consent for new investments or a sale of assets.

That led directors to decide on March 17 to put the company under Azets administration…………………………………………………………………………………………………………………..

“They are looking for investors now. … We also have to have a Plan B in the event ARC isn’t ready.”

That could include buying small reactors from companies not operating in New Brunswick.

Ontario Power Generation was recently granted a licence by the Canadian Nuclear Safety Commission to build its first SMR, a competing model by GE-Hitachi, at its Darlington power station.

ARC spokesperson Sandra Donnelly said in a statement Wednesday that the company aims to complete design work by 2027 so it can apply to the commission for a licence to build its first reactor. https://www.cbc.ca/news/canada/new-brunswick/moltex-canada-parent-potential-sale-1.7512014

April 19, 2025 - Posted by Christina Macpherson | business and costs, Canada