Newcleo's Elisabeth Rizzotti tells BI about the startup's aim to become Europe's leading nuclear juggernaut and IPO

• Paris-headquartered Newcleo is developing small modular reactors powered by radioactive waste.
• The startup, Europe's only nuclear unicorn, is riding a wave of Big Tech interest in nuclear energy.
• Elisabeth Rizzotti, its COO, said the startup will go public after hitting two key milestones.

A three-year-old startup is banking on molten lead and radioactive waste to fuel a nuclear energy renaissance driven by the tech world's demand for abundant and clean power.

Paris-headquartered Newcleo is building small modular reactors, a type of scaled-down nuclear fission reactor assembled in a factory that can be deployed locally at operating plants. It is aiming to capitalize on the frenzy to power energy-intensive AI data centers.

The startup's unique selling point is that its SMRs use molten lead instead of water as a coolant to transfer heat from the reactor core to a power-generating system.

Notably, the startup's SMRs use spent plutonium and uranium radioactive waste as fuel by separating these two elements from the unwanted fission products.

"We're using and reducing what is considered to be a liability and a strong concern for all the governments who have so many deposits of nuclear waste," Elisabeth Rizzotti, the cofounder and chief operating officer of Newcleo, told Business Insider in an interview. "So we also promised to reduce them. And this is a story that really excites people."

Big Tech's push into nuclear has galvanized the startup's efforts. Tech giants such as Google and Amazon have been pivoting to nuclear energy sources to power data centers, which in turn power AI applications. In September, Microsoft announced a deal to help restart Three Mile Island, a nuclear plant infamous for housing one of the most significant nuclear accidents in US history.

Localized nuclear power

Newcleo is one of a handful of companies developing SMRs. Competitors include NuScale, X-Energy, and Rolls-Royce. One appeal of SMRs is that they can be readily transported to industrial sites.

"One of our most relevant business models is supporting the industrial sector, in providing them energy locally," Rizzotti said. "The small models are easily transportable because they're flexible, and you can build them in the factory, so it's very feasible — so there is strong interest from the AI sector, but also wider commercial partners."

She told BI that Newcleo has been approached by other industrial sectors, such as ceramic metal producers, in addition to those in the AI ecosystem.

Securing industrial partnerships is key to Newcleo's growth strategy and fundraising efforts. The startup aims to develop its first prototype by 2026 and operate its first reactor by 2031. Right now, Newcleo is lossmaking, but earlier this year, it hit around $55 million in revenue through its three subsidiaries.

Growth ambitions

In September, Newcleo moved its headquarters from the UK to Paris, which Rizzotti said was to be closer to the French government and support its licensing applications. The move helped Newcleo get selected to be part of the European Industrial Alliance on Small Modular Reactors, an initiative to accelerate the deployment of SMRs.

Despite public and private sector interest, nuclear energy is still seen by some as a risky enterprise due to safety concerns and the hefty upfront cost of building power plants.

Rizzotti acknowledged that Newcleo's investors had a "high risk appetite" — but says Newcleo's place in the circular economy makes it an attractive investment option.

In March 2023, Newcleo announced a bold ambition to raise €1 billion, about $1.04 billion. It's now over halfway to meeting that target, having raised over $560 million in funding from the likes of Pi Campus, Tosto Group, and Viaro Energy since its launch in 2021.

Its future capital-raising strategy will also partially depend on public funds. "At a European level, energy independence is something that we need to consider," Rizzotti said. "It is very important to have a partnership between the public and private, because public investment will reassure private investors."

The startup also sees an IPO as a viable exit option in the future. "Sooner or later, we will start the project of an IPO, so the perspective of being public allows people and investors to have shares of a company that is recognized in the market," Rizzotti told BI. "It is a tangible asset."

While Rizzotti did not have a set timeline for the company going public, she added that it would likely be after the startup achieved a second key milestone after its first prototype in 2026: pre-authorization to build its first reactor in France by early 2027.

"Once we obtain these two milestones, in our opinion, we could be ready to go public," she told BI. "Otherwise, we will continue to raise money through more natural channels like private equity or venture capital."