Holtec International, an American nuclear firm cleared by the US Department of Energy (DoE) to invest in India’s atomic energy sector, has filed with the American securities regulator to go public later this year.
Florida-based Holtec, one of the world’s largest exporters of capital nuclear components, is a frontrunner in the emerging small modular reactor (SMR) space and could combine the initial public offering (IPO) with some private placement to raise capital for its upcoming projects, including proposed SMR-based projects in India.
The upcoming issue, billed as one of the biggest IPOs in the global nuclear industry in years, would help fund a $10 billion plan to enable Holtec pivot from being a supplier of nuclear gear and decommissioning services into a full-scale reactor manufacturer and atomic plant operator.
Some of the upbeat demand projections for the nuclear sector are coming in from the AI data centre boom, but the broader push for lower-emission electricity base-load solutions across the world is seen as a strong driver for growth in the nuclear sector. “And one of the main reasons I’m doing it (public issue) is so that we can go build in India,” Kris P Singh, the Indian-American promoter and CEO of the firm told The Indian Express.
The country’s atomic power sector was opened up through an overarching legislation late last year. The passage of the SHANTI Act, 2005 — that eased the liability framework and paved the way for greater private and foreign participation.
Holtec is learnt to be in talks with NTPC Ltd, India’s largest integrated power generator, for a new collaboration, apart from a handful of other alliances with equipment manufacturers. The company is currently in the process of getting the regulatory clearances across jurisdictions for its flagship small modular reactor, the SMR-300.
Holtec is among a handful of American nuclear firms that have been accorded ‘specific authorisations’ from the US government with respect to a restrictive American regulation referred to as “10CFR810” — (Part 810 of Title 10, Code of Federal Regulations of the US Atomic Energy Act of 1954).
This authorisation permits these firms, subject to certain conditions, to transfer technology to entities in countries such as India, which is otherwise barred under 810 regulations.
Alongside the IPO, Holtec may unbundle some parts of the company (Holtec International) and offer these segments to investors through the private market, including sovereign wealth funds and other investors. The firm was learnt to be in talks with Abu Dhabi-based investment fund International Holdings Company for a potential fundraise last year.
Holtec’s planned issue comes at a time of surging interest in nuclear energy from data centers and the clean energy transitions planned by utilities across markets.
Holtec leads India race
For India, Holtec holds special significance. Unlike Westinghouse Electric Co and GE Hitachi Nuclear Energy, the two US nuclear industry flag bearers that were seen as early frontrunners for an entry into India’s civil nuclear sector, the smaller, privately-owned Holtec is now in the lead to invest in the country’s atomic power sector.
The unprecedented regulatory clearance by the US DoE last year potentially sets it on course to leverage the commercial potential of the Indo-US civil nuclear deal.
The March 26, 2005 approval from DoE cleared Holtec International’s application for specific authorisation with respect to the DoE’s restrictive regulation that is referred to as ‘10CFR810’. This specific authorisation (SA IN2023-001) now conditionally permitted Holtec to transfer “unclassified small modular reactor technology” to its regional subsidiary Holtec Asia, as well as Tata Consulting Engineers Ltd, and Larsen & Toubro Ltd in India. Holtec is looking at other partnerships in India, including the ongoing discussions with NTPC.
Holtec’s main pitch centers on fostering a public-private initiative around the US firm’s flagship SMR-300, to potentially help break this stasis in the nuclear engagement between the two countries. It also proposes using existing coal plant sites in India to deploy its SMR-based projects, with the possibility of joint manufacturing in the future.
As of now, two SMR projects have reached the operational stage globally. One is an SMR named Akademik Lomonosov floating power unit in Russia that has two-modules of 35 MWe (megawatt electric) and started commercial operation in May 2020. The other is a demonstration SMR project called HTR-PM in China that was grid-connected in December 2021 and is reported to have started commercial operations in December 2023. Apart from Holtec’s SMR-300, other emerging western contenders in the SMR segment include the Rolls-Royce SMR, NuScale’s VOYGR SMR, Westinghouse Electric’s AP300 SMR and GE-Hitachi’s BWRX-300.
Established in 1986, Holtec provides spent fuel storage and logistics support for over 140 nuclear plants worldwide, as well as services such as nuclear decommissioning and increasingly, new reactor development. The company is now attempting what would be a first in American history — reviving a shuttered nuclear plant.
The reactivation of the Palisades Nuclear Plant in Michigan, closed in 2022 for economic reasons, is being funded in part by a $1.5 billion loan guarantee from the US DoE. Holtec plans to install two of its own SMR-300 small modular reactors at the site, in collaboration with Hyundai Engineering & Construction.
Holtec’s SMR-300 is a pressurised light-water reactor that will produce at least 300MWe of electric power on a small parcel of land. Unlike most traditional nuclear power plants that require large quantities of water, the SMR-300 can be adjusted to use an air-cooling system and the modular design means it is easy to scale up projects. The criticism is that there is still no commercial SMR project that is up and running, with the viability of these units yet to be proven.
Holtec already has a footprint in India, with a Pune-based company operating in the non-nuclear energy business.
Holtec International is planning an IPO to fund its global small modular reactor expansion, including proposed SMR projects in India. (Representative image) 
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