Nuclear start-up newcleo says that, following a review of the company’s global programmes, the board has resolved to concentrate the group’s resources on territories committed to realising a closed fuel cycle (including the reuse of used nuclear fuel and achieving energy independence) and those who are more substantively supportive of the development of AMR [advanced modular reactor] technologies. “As a consequence, newcleo will be suspending its programme to develop lead-cooled fast reactors (LFRs) in the UK and will substantially wind down its UK activities.”
It continues: “Since establishing and even headquartering itself in the UK in 2021, newcleo has continuously engaged with successive government administrations on access to the UK’s stock of stored plutonium (which newcleo had planned to recycle for use as new fuel for its reactors) as well as underlining the need for clear “in principle” government support for projects such as newcleo’s.”
Newcleo relocated its holding headquarters from London to Paris in October 2024, saying this reflected its “unwavering focus on growing its European presence and delivering its ambitious timelines and strategic projects”. These include development of a precursor reactor in Italy by 2026; establishment of a mixed oxide (MOX) manufacturing plant in France by 2030; construction of a prototype reactor in France by 2031; and delivery of commercial reactors starting from 2033.
Since 2021, newcleo has raised over €570m ($666m) from institutional and individual investors and has seen an increasing number of European players joining newcleo’s growing funding base, which to date counts over 750 shareholders.
Since its launch, newcleo has been very active in fundraising and signing partnership and collaboration agreements. Its business now counts over 90 partnerships, with more than 1,000 employees based in 19 locations across France, Italy, the UK, Switzerland, and Slovakia, including three manufacturing facilities. Newcleo’s project in France in 2024 won a €20m grant from Bpifrance, the country’s public sector investment bank.
Newcleo is developing a LFR-AS-200 small modular lead-cooled fast reactor. While the newcleo website includes a mock-up of the LFR reactor, it provides very little technical information about the reactor design. Currently, the only operating liquid metal-cooled fast reactors are in Russia, using sodium as the coolant. Russia is also constructing the world’s first ever lead-cooled SMR (Brest-OD-300) in Seversk as part of a facility to demonstrate an on-site closed fuel cycle. This reactor, based on decades of complex research and development supported by the entire Russian nuclear industry, is due to begin operation in 2029. By contrast, despite its rapid business expansion, newcleo’s technologies remain in the very early conceptual design stage.
However, the company clearly feels that it has not received sufficient support in the UK for its ambitious projects. “Despite support and funding being provided to other small modular reactor (SMR) technologies, opportunities for this backing have not been forthcoming for Generation IV developers in the UK such as newcleo,” it says. “In addition, the alternative routes to market for AMRs which have been mooted for a number of years in UK policy, including processes involving Great British Energy – Nuclear and National Wealth Fund, are unlikely to offer certainty of tangible support in a timeframe capable of making the UK a better prospect for newcleo compared to other territories.”
It continues: “As such, the board has taken the decision to concentrate the business’ efforts in countries where substantive support is more forthcoming. newcleo plans to retain a reduced UK team to maintain its presence in the UK and allowing it ramp up its activity should the outlook for AMRs in Britain improve in future.” Newcleo’s circa 150 UK staff have been informed of the decision and of the implications for the workforce. “The business will be engaging with other players across the British nuclear sector to secure the best outcome for its UK team, whose talents span the industry’s skill set.”
Newcleo sees a better climate for funding and investment elsewhere. “In making its decision, the board acknowledged the fierce international race to close the fuel cycle using Generation IV nuclear technologies. In this race, the US has significantly accelerated efforts to develop advanced modular reactors as the recent Presidential executive orders demonstrate, and France is showing strong commitment as well with a state-backed view to close the fuel cycle by the end of the century. France, a key market for newcleo, has actually committed to long-term fuel recycling plans.”
The company has ambitious plans. “In Slovakia, newcleo has created a joint venture with the state-owned nuclear company, JAVYS, to build up to four LFRs powered by the country’s spent nuclear fuel stocks, a project which has received endorsement from the highest government officials. In June, an agreement with the Lithuanian Government was signed based on a similar strategy. newcleo believes that, by comparison, these markets offer better prospects than the UK at this time and this has driven the decision to strengthen its focus on territories more aligned with its offering.”
Stefano Buono, founder and CEO of newcleo said he is “profoundly disappointed both for our UK team and for what this might mean for the development of new nuclear in the UK.” He continues: “We chose to start our company in Britain when we launched newcleo in 2021 because we saw it as the most progressive and entrepreneurial environment for advanced nuclear technologies. We had a vision to not only build safe, affordable low-carbon power plants but to provide a sustainable solution to the issue of the UK’s spent nuclear fuel – turning something which is currently stored as waste into a valuable source of clean energy. Sadly, despite many attempts to engage with political stakeholders, the UK government has decided to not make its plutonium available for the foreseeable future and to lend its political support and considerable funding to other technologies.”
Although the UK was assessing newcleo’s reactor design, the company clearly sought more tangible support. “We were the first new reactor design in almost a decade to apply for UK regulatory justification and the first advanced reactor technology to be accepted for the Generic Design Assessment. We also came tantalisingly close to concluding a deal for our first UK reactor site. It’s testament to our team’s hard work and the strength of our design but we could take things forward only so far without clear and unambiguous support.”
The UK, however, has chosen to give its support to reactor designs which can be realised in a reasonable time period based on proven technologies. In June, the UK named Rolls-Royce SMR, based on pressurised water reactor technology, as the preferred bidder to build the country’s first SMRs. The decision followed a two-year competition to identify the SMR vendor which will partner with Great British Energy – Nuclear (GBEN) – formerly Great British Nuclear – to develop the reactors. The government expects the project to support up to 3,000 jobs at peak construction and pledged over £2.5bn ($3.4 bn) for the overall SMR programme in this Spending Review period. A site for the project is expected to be allocated later this year with grid connection anticipated in the mid-2030s.
By contrast, development of a LFR, still in the early conceptual design stage, could take decades to be realised, as the history of Russia’s Brest-OD-300 shows. Newcleo’s plans to field its first commercial reactors in 2033, without committed, consistent government investment and support, seem over-optimistic.
