'Risk of insolvency' at parent company of N.B. nuclear developer
CBC
Saint John-based Moltex Energy Canada Inc. is hoping potential new owners for its overseas parent company will breathe new life into its development of small modular nuclear reactor technology in the province.
But the company acknowledges that cash flow problems at its U.K.-based parent company have slowed down those efforts.
There is "a risk of insolvency" at the parent company, Moltex Canada CEO Rory O'Sullivan acknowledged in an interview.
An administrator is now looking for buyers for the U.K. company's assets, which include Moltex Energy Canada.
"As a technology development company we need to almost continuously be fundraising to keep progressing technical milestones," O'Sullivan told CBC News. "And, because we need parent company authorization to raise new capital, we have not got that authorization.
"That has slowed us down. And so that's why we're looking forward to new owners as soon as possible."
The U.K. administrator overseeing the sale, Azets Holdings Ltd., said in a statement that the holding company had been unable to get majority shareholder consent for new investments or a sale of assets.
That led directors to decide on March 17 to put the company under Azets administration.
"The decision taken to place the company in administration is in no way a reflection on the operations of, or proposition within, the subsidiary companies," the statement said.
Potential buyers for Moltex have until May 7 to submit bids for the company's assets, and it should take two to three months for the sale to close.
O'Sullivan said he is "very confident" that Moltex Canada will still be operating later this year.
Nuclear power doesn't emit greenhouse gases, so it's a key element of N.B. Power's strategy to reduce emissions that contribute to climate change.
Since 2017, Moltex Energy Canada is one of two companies that have been at work in Saint John developing small modular nuclear reactors.
The company received $5 million from the New Brunswick government in 2018 and almost $50 million from the federal government in 2021.
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