(Bloomberg) -- Nuclear energy startup Aalo Atomics has raised $27 million in a funding round aimed at addressing the growing demand for cleaner energy.
The Series A round was led by 50Y and Valor Equity Partners, according to Aalo Atomics. Other investors included Harpoon Ventures, Alumni Ventures and Preston-Werner Ventures.
Nuclear energy, after decades of plant closures, has attracted heightened interest from investors and increasingly bipartisan support to help reduce climate change caused by the burning of fossil fuels. With the need for new power sources to meet electricity demands from artificial intelligence and data centers, the US government and some of the world’s richest investors including Bill Gates and Jeff Bezos are pouring money into startups developing new nuclear reactors.
Unlike current nuclear power plants that use pressurized water to transfer heat generated by fuel rods in a reactor core, the micro reactor being designed by Aalo Atomics relies on sodium as a coolant to pair with uranium zirconium hydride fuel, which makes units safer to operate.
“We’re on a mission to make small nuclear reactors in gigafactories,” Aalo Atomics Chief Executive Officer Matt Loszak said in an interview.“The goal is predictable low costs and short construction time line, making clean energy a reality, any place, any time.”
The reactors are relatively cheap to manufacture at scale and easier to deploy, even in locations with limited electricity access, according to Loszak.
The company doesn’t yet have regulatory approval for its technology. It expects to submit an application to the US Nuclear Regulatory Commission in 2026. It has also opened a factory in Austin, Texas, and is looking to deploy an experimental reactor at the Idaho National Laboratory.
--With assistance from Will Wade.
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