Major Microreactor Developer Enters Bankruptcy Amid Nuclear Industry Surge
Ultra Safe Nuclear Corp. (USNC), a developer of much-watched microreactor technology and advanced nuclear fuel, has filed for Chapter 11 bankruptcy. The move signals a critical restructuring phase through which the company will seek to secure new ownership while ensuring uninterrupted operations.
The company’s Oct. 29 filings at the U.S. Bankruptcy Court for the District of Delaware include its key subsidiaries: USNC-Power Ltd., which develops the company’s flagship 15-MWe (45 MWth) Micro Modular Reactor (MMR) technology; Global First Power Limited (GFP), focused on nuclear project development within Canadian markets; and USNC-Technologies, which leads USNC’s nuclear technology research and development initiatives. Each subsidiary plays a distinct role in USNC’s vertically integrated approach to advancing its Gen IV nuclear technology.
Process Designed to Keep USNC Operating
USNC’s petition is intended to facilitate a streamlined sale process under Section 363 of the Bankruptcy Code, which would allow the Oak Ridge, Tennessee–headquartered USNC to offload assets while continuing to operate its existing projects under a court-supervised process.
The company told POWER on Wednesday that while it remains steadfast in “facilitating a transparent sale process for all of its assets and projects,” the “continuation of the collaborations and various projects will be at the choosing of the new owner.” It added: “We note that amongst the various the entities considering acquisition of the company’s assets, significant interest exists for all ongoing projects.”
USNC is currently invested in two separate MMR high-temperature gas-cooled reactor (HTGR) projects. In Canada, GFP is spearheading a 15-MWe MMR demonstration at Canadian Nuclear Laboratories’ (CNL) Chalk River site in partnership with Ontario Power Generation. The project, which kicked off in 2019, is currently pursuing licensing, engineering and system development, and environmental assessment. Site work is slated to begin in 2026, with operations scheduled in 2028 or 2029. OPG told POWER that it made a mutually agreeable decision in August 2024, prior to the bankruptcy filing to exit the project, transferring its interest in GFP to USNC.
“OPG frequently examines its business opportunities and strategic priorities,” OPG noted. “USNC is now solely responsible for the company and Chalk River Project,” it said. The company also underscored “it remains committed to the three streams of SMRs laid out by Canada’s SMR Action Plan: grid-scale (including the four SMRs for which site preparation is currently underway at the Darlington New Nuclear site), industrial, and MMRs, for use at remote and northern sites.” The provincial crown corporation is currently readying for a a regulatory hearing for the Darlington SMR in January 2025 and expects to receive the construction licence for the first SMR in the second quarter 2025, it said.
CNL Wednesday told POWER it was aware of USNC’s Chapter 11 filing and was “tracking developments and will be closely monitoring next steps as they evolve.” The Canadian nuclear science and technology organization added: “We remain optimistic and confident in nuclear technology and the important role nuclear will play in the future of energy.” CNL noted that it has set a goal to demonstrate the commercial viability of SMRs before 2030 to position Canada in a leadership role for the emerging nuclear technology. Supporting the growth of nuclear in Canada remains central to CNL’s vision, and the entity will actively work to see SMRs and other advanced technologies move forward, it told POWER. “This includes the expansion of the siting invitation for technology developers to site a demonstration unit at an AECL site; continued growth of the highly-successful Canadian Nuclear Research Initiative (CNRI) program which helps emerging technologies become technology-ready through access to the national laboratories; and, together with AECL, we are leading the development of a microreactor framework to inform and support future deployments,” it said.
USNC’s second MMR project is slated to be built and operated at the University of Illinois at Urbana-Champaign’s Grainger College of Engineering as a Class 104(c) utilization facility for research and development purposes. The university and USNC received two key regulatory approvals from the Nuclear Regulatory Commission (NRC) in September. One affirmed their approach to screening applicable regulations for the MMR, and the other approved the principal design criteria for the reactor. Both are designed to streamline future applications and reduce licensing uncertainties.
The court-supervised continuity will also attempt to sustain USNC’s efforts to scale up production of its TRISO-based Fully Ceramic Microencapsulated (FCM) fuels, which could be applied to both terrestrial and space applications. In August 2022, the company opened a pilot fuel manufacturing facility in Oak Ridge, Tennessee, where it intends to produce the first fuel for testing and qualification for use in the MMR. USNC has a signed purchase agreement for enriched uranium product (<10%) feedstock from Urenco, with the first batch slated for delivery by the second quarter of 2025. It also has a November 2023–established joint venture, TRITONIC, with Framatome to provide deconversion services and fabricate fuel for the MMR.
The company is also collaborating with the U.S. Department of Defense and NASA on advanced radioisotope-based power production technology, nuclear thermal propulsion systems, and advanced materials. In addition, the company has obligations tied to other grants.
USNC was one of three picks unveiled by the Department of Energy (DOE) last year to design the first experiments to further microreactor designs at Idaho National Laboratory’s (INL’s) new 20-MWth Demonstration of Microreactor Experiments (DOME) testbed (which repurposes the Experimental-Breeder Reactor-II (EBR-II) containment structure). USNC was slated to test its Pylon reactor nuclear system architecture for a 10-ton class microreactor. In July 2023, it secured a $29.3 million matching funds grant as part of a partnership with nuclear services firm Jacobs from the UK’s Advanced Modular Reactor (AMR) RD&D Programme, Phase B, a program that aims to demonstrate HTGR technology by the early 2030s.
Stalking Horse Bid and Sale Process
USNC on Wednesday acknowledged financial challenges contributed to the Chapter 11 filing. One factor was the recent passing of investor Richard Hollis Helms, whose family had invested $100 million and provided another $25 million in loans. “The loss of our founding and largest investor was a factor, but by no means the sole reason leading the company toward Chapter 11,” the company told POWER. “The company had been struggling financially for some time and despite significant interest in USNC, the company was unable to mature that interest into financial commitments,” it said.
The court filings suggest USNC recorded an annual revenue in fiscal year 2023 of about $5.8 million, and its revenue for fiscal year 2024 to date is $7.1 million. As of the petition date (Oct. 29), it held about $72.7 million in outstanding secured and unsecured debt obligations.
Starting in 2022, USNC partnered with Citibank to secure new capital through a Series B round, successfully drawing interest from prominent investors, including asset managers, pension funds, and major corporate investment funds. However, most investors required an “anchor” investor to solidify their commitments—a role that remained unfilled after the passing of Helms in May 2024. With no anchor investor to lead, USNC ultimately failed to raise the necessary capital to sustain operations. It secured only an $18 million investment from a Canadian labor pension fund, the filings suggest.
According to the court documents, USNC has now secured debtor-in-possession (DIP) financing, a financial lifeline, which, contingent on court approval, will provide essential liquidity to uphold obligations to employees and vendors pending court approval.” USNC intends to continue a sale process for its “remaining assets and effectuate any resulting sale transactions pursuant to Section 363 of the U.S. Bankruptcy Code,” it said.
As another notable aspect of its restructuring, USNC entered into an asset purchase agreement with Standard Nuclear. The agreement positions the investment firm as the “stalking horse” bidder for USNC’s fuel-related assets. The stalking horse bid, valued at $28 million, serves as a competitive minimum bid—a “floor price”—for USNC’s assets to ensure that the sale process garners market interest and fair valuation for stakeholders. “USNC has asked the Court for approval to complete the transaction in December,” the company noted on Tuesday.
According to the court filings, USNC’s estimated assets fall within the $10 million to $50 million range, while its estimated liabilities are reported within the $50 million to $100 million range. The company indicates funds will be available for distribution to unsecured creditors after administrative expenses and estimates the number of creditors, on a consolidated basis, at 1,000 to 5,000. However, the financial picture suggests that USNC faces a significant debt burden, which exceeds its reported assets. Because USNC has a consolidated ownership structure, the company will likely realign subsidiary operations under a single framework, with USNC’s leadership and board actively involved in the restructuring.
The court documents indicate that USNC’s leadership and board of directors fully supported the decision to proceed with Chapter 11. The board “reviewed and considered the financial and operational condition” of the company and its business and weighed its current and long-term liabilities as well as the recommendations of its legal and other advisers regarding the risks of pursuing a bankruptcy proceeding, the filings say.
“After carefully exploring all available options, we have decided that this court-supervised sale process offers the best path forward while ensuring continuity across our key technology initiatives,” said Kirk Edwards, chairman of USNC’s Board of Directors, in a statement on Tuesday. “These initiatives include bringing our TRISO-based fuels to market, deploying MMRs as a carbon-free energy solution, and advancing essential technologies for the U.S. Department of Defense, NASA, and the UK Department of Energy Security and Net Zero. We are pleased to begin this process with an agreed-upon offer from an entity aligned with our strategic objectives and experienced in the sector. We appreciate our stakeholders’ continued loyalty as we work towards a stronger future for USNC.”
Industry Perspectives: A Stumble, Not a Setback
The prominent startup’s bankruptcy marks a stumble—albeit glaring—for the advanced nuclear industry’s burgeoning progress, given the company’s seemingly robust strategy to commercialize its microreactor and advanced fuel technologies. Founded in 2011 by Dr. Francesco Venneri to commercialize his innovation, FCM fuel, the company has since garnered substantial industry support, such as from entities like Hyundai Engineering. The Chapter 11 filings, however, underscore substantial trade debt.
The company’s troubles arrive as the nuclear industry appears buoyant amid a number of substantial recent triumphs that illustrate solid confidence from investors, policymakers, and industry in the sector. Earlier this month, tech giant Amazon committed to a massive nuclear deployment of 5 GW with X-Energy’s HTGR SMRs in collaboration with Energy Northwest and Dominion. Google also announced a partnership with Kairos Power to build a 500-MW molten salt reactor SMR fleet for data center power, while the DOE released $900 million to accelerate Gen III+ SMR deployment, targeting two pioneering projects. Separately, the DOE took decisive steps to advance high-assay low-enriched uranium (HALEU) supply chains, selecting four companies for enrichment and six for deconversion services to fuel next-gen reactors.
On Tuesday, industry experts suggested that USNC’s Chapter 11 filing reflects the broader maturation of the nuclear sector. Many see the challenge as a natural phase in the industry’s evolution, where complex, high-stakes projects require time, investment, and resilience.
USNC’s bankruptcy is part of the “natural churn that will happen in the industry,” said Joyce Connery, chair of the Defense Nuclear Facilities Safety Board (DNFSB), during a webinar hosted by the American Nuclear Society (ANS) on Tuesday. “Not every company will succeed, and that’s okay,” she said. “The important thing is that we maintain the overall momentum and excitement for nuclear energy. We need to have patience and recognize that this is an evolutionary process, not a revolutionary one. Some companies will fall out, but that allows better ideas and stronger companies to move forward.”
Seth Grae, CEO of metallic fuel technology firm Lightbridge Corp., pointed out that “bankruptcies are not uncommon, even for successful companies in the nuclear industries. We saw it with Westinghouse—and they came out stronger,” he said.
Bradley Williams, senior policy advisor at the Idaho National Laboratory, also suggested that USNC’s financial troubles may not hinder the nuclear sector’s overall progress. “While the USNC bankruptcy is certainly not good news, I don’t think it’s a fatal blow to the nuclear industry’s momentum,” he said. The sector has navigated challenges before, he noted. “In terms of optimism, we had another hiccup last year with the UAMPS project and NuScale,” he said. The companies mutually moved to terminate the 462-MWe SMR project in November 2023 after it failed to secure adequate subscriptions, though all indications were that the project was on track for the plant to be fully operating by 2030. “I was working on the Hill. At the time, nobody batted an eye. They recognize that there will be bumps in the road, and not everybody will be successful. Hopefully, USNC comes out of the bankruptcy stronger to keep moving forward,” he said.
For now, as Patrick White, research director at the Nuclear Innovation Alliance, pointed out, the commercial maturation of the industry appears well aligned with the “right conditions.” The industry is currently fielding “strong federal and state support, growing customer demand, and a more responsive regulatory environment,” he said. “As long as we maintain that overall momentum, the occasional setback like USNC won’t stop the forward progress of the nuclear sector.”
—Sonal Patel is a POWER senior editor (@sonalcpatel, @POWERmagazine).
Updated (Oct. 31): Adds comments from USNC, CNL, and OPG.
Correction (Oct. 30): USNC’s flagship Micro Modular Reactor is 15-MWe (45 MWth). The company tripled the reactor’s power in summer 2023 given market direction.