The birth of a new industrial sector is always a small event in France. At a time when technological sovereignty is becoming a priority for the government, its evolution and eventual success are all the more closely scrutinized. And when the sector in question intends to decarbonize the industry, inevitably, it holds the attention of our leaders. In any case, this is the promise of nuclear mini-reactors or small modular reactors (SMR), which aim to produce electricity, hydrogen or even heat, depending on the model.
There are around ten players in France who have positioned themselves in this niche over the past three years. A healthy competition for the moment, if we are to believe the first interested parties and which even promotes their development. “It is extremely interesting to have several people investing on common bases. I will give a concrete example: to manufacture a tube in a nuclear reactor, it must be quite hard and thick. This requires very specific machines . No matter the type of reactor, everyone will need it”, illustrates Antoine Guyot, co-founder of the start-up Jimmy, which is developing a high-temperature nuclear microreactor whose objective is to eventually replace the boilers. industrial gas or fuel oil.
Newcleo at the head of the gondola
Among this myriad of new protagonists, one company seems to stand out for the moment. And she is… Italian-British. During the Choose France summit in mid-May, Newcleo struck a blow by announcing an investment of 3 billion euros in France with the upcoming construction of a factory near Lyon where the young shoot, launched in September 2021, already has a subsidiary. It has also just been the fresh winner of the call for “innovative nuclear reactors” projects, as part of the France 2030 investment plan, alongside the French start-up Naarea. The two companies, which rely on a reactor cooled with lead for the first, and with molten salts for the second, will benefit from financing of 25 million euros. “The arrival of Newcleo is very good news. They follow the same schedule as us. This validates our model and our vision. We must not forget that the real competition is above all American, Canadian and Chinese”, assures Jean-Luc Alexandre, co-founder of Naarea.
And the French state does not intend to stop there. Almost two years ago, in October 2021, Emmanuel Macron gave a spotlight on these technologies during the presentation of the France 2030 plan: “The number one objective is to bring out in France, by 2030, innovative small-scale nuclear reactors, with better waste management”. Five months later, on the historic site of Framatome, in Belfort, the Head of State promised “the rebirth of French civilian nuclear power”. “It is obvious that from this announcement, everything accelerated. Participation in France 2030, which is the demonstration of France’s desire to have innovative projects that can really make a difference in Europe, has also played a lot” in our choice to settle in France, recognizes Elisabeth Rizzotti, co-founder and director of operations of Newcleo.
A booming industry
New winners of the “innovative nuclear reactors” call for projects are expected in the coming months, while applications can still be submitted until the end of June. In total, 1.2 billion euros will be distributed. As it finally sees the end of the tunnel with the Flamanville EPR, EDF has decided to also embark on the race for mini-reactors. Its Nuward project, which the public company is carrying out in collaboration with the Atomic Energy Commission (CEA), TechnicAtome and Naval Group, will be financed to the tune of 500 million euros thanks to the France 2030 plan.
Any young structure, the start-up Neext Engineering, which is based on the same technology as Newcleo, intends to grab part of the remaining bet. Created by former employees of General Electric Belfort just a few months ago, it intends to promote the territory where skills in the nuclear field are not lacking. “We are faced with industrialists who are asking themselves a lot of questions today and who have no answer on how to take ownership of the problem of decarbonization. We will perhaps be the most modest in terms of investment. On the other hand, we have complex engineering skills that will allow us to seek markets different from our competitors”, develops its co-founder, Jean Maillard.
And for now, there is room for everyone. The Atomic Energy Commission has understood this well. The organization has supported five innovative mini-reactor projects in recent months: Hexana, Stellaria, Archeos, Otrera and Blue Capsule… All of them are applying for France 2030. A necessary step to grow and assert themselves. “It’s not necessarily black or white, but I think that the winners of France 2030 will necessarily benefit from a dynamic that will allow them to develop more quickly”, estimates Stéphane Sarrade, director of the Energy program at the CEA. To convince the jury, Frédéric Varaine, co-founder of Otrera, intends to capitalize on his experience as a former head of the Astrid project. “At the end of the program in 2019, we were seven to eight years ahead of the Americans and 10 to 12 years ahead of the Chinese,” recalls the engineer.
The central issue of funding
The question of financing will obviously be central to the success or otherwise of a model. “The time scales are extremely long, much longer than in other energy production systems. There is a real reflection to be carried out on the way to finance this entire phase of research and development”, advances Benoit Praud, director investment within the Innovacom fund. Since its creation, Jimmy has for example raised 17.2 million euros, when Newcleo has already collected 400 million euros and plans a new funding round of one billion euros in the coming months. “This is a very recent field, in which there are very few investors. The financing constraints linked to the sector are not compatible with the development time. Mechanisms and guarantees must be found”, continues Benoit Praud. For Eric Abonneau, assistant to the 4th generation program at the CEA, all the actors will not be able to coexist together indefinitely: “It’s a funnel system, where the more time passes, the less the State will distribute funds and where the companies must, in order to survive, either be the best or have the ability to convince private investors”.
To stand out, time will be the key. “Jimmy will go fairly quickly. We are talking about an operational project in 2026. We are not on a ten-year time scale like most other projects. They fit quite well into the industrial value chain: there is no need to create a new factory and you can buy parts or have the mini-reactor assembled with the current nuclear ecosystem”, assures Christophe Guillaume, co-founder of the Noria fund, one of the first to have backed Jimmy Financial. Newcleo is aiming for a first demonstrator by 2030, just like Naarea. “It’s very ambitious, but quite achievable. From 2032-2033, we will move into the industrial phase. Because the bulk of the project is to build the first reactor, demonstrate not only to the scientific community but also to institutions, that everything works very well. The first reactor is always the most complicated. Then, we will be able to market it in the fleet”, says Elisabeth Rizzotti.
There remains the regulatory framework. All claim to be in regular contact with the nuclear authorities to prepare the ground. “It would be a mistake for the State, the Nuclear Safety Authority (ASN) and the Institute for Radiation Protection and Nuclear Safety (IRSN) not to take their share of responsibility in this race for decarbonization. We cannot allow ourselves to wait until 2040 so that the first carbon-free heat sources can come out,” said Benoit Praud. “We have to go quickly and help them find funds to develop, even if it means abandoning certain ideas later, confirms Eric Abonneau. Then we will be able to judge the progress made or the obstacles that could not be lifted. “.