The new year is upon us and it is time to get the ball rolling. The project at hand is building the funding structure and the eco-system for Liquid Fluoride Thorium Reactors (LFTRS). There are numerous challenges to this process. However, the rewards are no less than the solution to the greenhouse gas issue and the incredible wealth to be generated from the successful execution of this project. This is the environment we face.
Competition
There are numerous entities working on “New Nuclear”. These break down into two main categories. The first is the “Small Modular Reactor” or SMR group. The second is the “Molten Salt Reactor” or MSR group. There is some overlap, however, hopefully I can clear that up.
The SMR group is made up of entities that are taking current boiling water reactor or light water reactor (BWR/LWR) technologies and shrinking them and designing them to be able to be linked together in addition to locating of many of the current external components to within the reactor core. There are also molten salt reactor companies designing salt based reactors that are small and modular and can be linked as well.
The MSR group is comprised of companies developing molten salt reactor technologies that may be utility class or small modular reactors.
Investment Thesis
Having done our research in this field, we have developed a fairly simple investment thesis. First, SMRs (non MSR) will fail and fail miserably. When you take old technology like a PWR/BWR reactor and you make it smaller you end up making it even less efficient at using the fuel that already is horribly inefficently used in current large scale utility PWR/BWR reactors. So you are taking a problematic fuel cycle and making it worse. Even though the new crop of SMRs looks promising, it is a fool’s bargain and essentially ends up being lipstick on a pig. So we have eliminated SMRs completely.
Now, as for MSRs (both SMR and Utility scale) we have taken a look at the fuel cycles of these promising (on the surface) technologies. Unfortunately, when you start peeling back the layers, all are not equal. Many will fail. Likely 95% of the firms that are entering this market will not be here in 10 years. And we know which ones. The failures of Terrapower, Transatomic, and the near death experience of Elysium are already proving out our thesis
Investment
To this end our firm will be producing an exempt offering for Canadian and US investors only. It will be simple. It will not be an investment fund. Instead it will be an operating company with a wholly owned US subsidiary and a wholly owned European subsidiary. The operating company will start with a capital base of a very limited amount of shares. Investors will be offered preferred non-voting shares. The firm will invest in and develop MSR firms and technologies needed to develop a very specific MSR development thread, but one that has the highest probability of eventual success and very high ability to produce staggering profit potential. We expect an offering in early 2020.
Stay Tuned…