Blykalla Seeking $30 Million in Silicon Valley – Targets Data Centers
Swedish company Blykalla is in Silicon Valley to attract investors and secure an additional $30 million. With their lead-cooled small modular nuclear technology, they aim to offer a sustainable energy solution for tech giants like Amazon, Microsoft, Google, and Meta, which face growing energy demands in their data centers.
At Coupa Café in Palo Alto, SVNB meets Mikael Fraenkel, CFO of Blykalla, during San Francisco Tech Week, where he is engaging with potential investors. "Tech companies like Amazon and Meta have enormous energy needs, and nuclear power is the most sustainable long-term solution," says Fraenkel. "Our lead-cooled reactors are safe and compact, making them perfect for placement near major energy consumers like data centers."
Blykalla, which builds on IP developed from research at KTH in Stockholm, raised $15 million in an A-round earlier this year. Now, they aim to secure an additional $30 million to begin constructing their first SMR reactors.
"We have seen great interest from investors here in Silicon Valley. We are starting to build our test reactor this winter, and with the additional $30 million, we plan to begin building our first small modular reactor," Fraenkel explains.
Unique Technology for Data Centers
Fraenkel places a small plastic prototype of the reactor on the table – the actual version will measure five by five meters. According to Fraenkel, just a few of these reactors could meet the energy needs of a large AI data center. The technology relies on using liquid metal, specifically lead, to cool the nuclear reaction—a technique used in Soviet submarines in the 1960s. One issue with those submarine reactors was that the hot lead corroded surrounding metals. Blykalla’s unique patents involve materials that prevent this, enhancing durability and safety.
Test Reactor on the Way
Blykalla’s next step is to build its first test reactor in Oskarshamn, in collaboration with Uniper and OKG. Construction is set to begin this winter, with the reactor expected to be completed in 2025. While it won’t use nuclear fuel, the reactor will demonstrate the safety and performance of the lead-cooled technology.
"This is a major milestone, not only for us but for the Swedish nuclear industry," says Fraenkel. "We are on track to build Sweden’s first new nuclear reactor in 40 years."
Blykalla’s Long-Term Goals
Blykalla’s goal is to have its first commercial SMR reactor in operation by 2029 and to scale up production globally in the 2030s. The U.S. market looks especially promising, given the massive energy demands of data centers, particularly those supporting AI.
"Our technology can play a central role in powering future data centers while reducing their environmental impact. Tech companies need clean, reliable energy, and we’re here to show that Blykalla can deliver just that," says Fraenkel.
Investor Questions in Silicon Valley
When asked about the questions they get from investors on Sand Hill Road, Fraenkel notes the focus is mainly on scalability and licensing processes.
"We get many questions about how the technology works, how we plan to license it, and our commercial progress. In the U.S., investors are heavily focused on how we can scale quickly and the exciting upside of our solution, while in Europe, the mindset isn’t quite the same," explains Fraenkel.
Future Timeline and Political Challenges
Blykalla is targeting 2030 to have its first reactors operational. Fraenkel emphasizes that much depends on the continuation of strong political support for nuclear energy, which has grown significantly in recent years in both Europe and the U.S. While nuclear power remains a polarizing issue, more people are beginning to recognize the need for advanced nuclear technologies in combating climate change.
"We’re facing a climate crisis, and we need clean energy. The technology is there, it’s rapidly improving, and now it’s about making the right decisions to bring it to market," says Fraenkel.
Blykalla’s Background and Investors
Blykalla was founded in 2013 by Janne Wallenius, Peter Szakalos, and Jesper Ejenstam. Early investors included Norrsken, Uniper, and prominent Swedish entrepreneurs such as Jonas Nordlander, Filip Engelbert, and Carl Manneh. The A-round was led by nuclear-focused investors like 92 Ventures, Nucleation Capital, and Armada, along with impact investors like Norrsken, Collab, and Earth Ventures. Blykalla now seeks further interest from Silicon Valley’s deep-tech and climate-tech investors.
Facts about the market and competition:
Mobile Nuclear Power in the U.S.
Interest in mobile nuclear power is growing rapidly in the U.S., particularly for small modular reactors (SMRs) and advanced nuclear technologies for both stationary and mobile energy solutions. Key players and technologies include:
Key Players:
Oklo Inc.: A Silicon Valley-based company developing microreactors for remote locations, planning its first in Idaho.
NuScale Power: An Oregon-based leader in SMR technology, awaiting regulatory approval for the first commercially available SMR in the U.S.
Westinghouse: Developer of the eVinci microreactor, designed for quick deployment in remote areas.
X-energy: Develop advanced SMRs using high-temperature gas turbine technology, with potential mobile applications.
TerraPower, backed by Bill Gates, is a nuclear innovation company developing advanced reactors like the Natriumreactor, which uses liquid sodium cooling and includes energy storage for enhanced efficiency.
Technology:
Small Modular Reactors (SMRs): Compact nuclear reactors are designed to be smaller and easier to install than traditional reactors, ideal for remote locations or quick installations.
Microreactors: Even smaller than SMRs, microreactors like those from Oklo and Westinghouse’s eVinci are designed for fast deployment in remote or emergencies.
Liquid Metal-Cooled Reactors: Similar to Blykalla’s lead-cooled reactors, some U.S. companies use liquid metal to cool reactors, offering increased safety and efficiency over water-cooled systems.
Challenges and Opportunities:
While mobile nuclear power faces regulatory hurdles and slow approval processes, the potential for reliable, emissions-free energy in remote areas, military bases, and disaster relief efforts is significant. These technologies could also reduce dependence on fossil fuels in heavy industries and data centers.