Deep Fission Wins Fresh Investor Backing for Nuclear Reactor Burial

Any roughneck could tell you the best way to produce energy is to dig a hole deep into the earth and pump some oil out. 

They’re only half-right, at least according to Deep Fission.

Instead of pumping oil out, the nuclear startup wants to bury a small modular reactor a mile underground. Last week, the company scored $80 million in new financing to help turn the long-discussed concept in the nuclear energy world into reality. And, yes, it’s yet another play at powering those energy-starved data centers.

Notes From the Underground

There are two key reasons to bury SMRs deep beneath the earth’s surface. The first is that, obviously, nuclear fission carries the risk of releasing radiation into the surrounding area, which makes a mile’s worth of earth, dirt and rocks the perfect natural containment system. The second reason is related to the first: It’s a lot cheaper to dig a (very deep) hole and drop an SMR down it than it is to build a whole nuclear facility around a surface-dwelling SMR.

That means Deep Fission’s SMRs might not just be safe, but also more rapidly deployed than their above-ground competitors. And it’s why big names have lined up to back the company in two massive financing rounds just months apart:

• Last week’s $80 million funding round featured participation from major backers, including Montrose Capital and EE Holdings, and is built around “a new strategic relationship” with Blue Owl Capital’s Real Assets platform, the company said in a statement.
• The cash infusion comes after the company secured a $30 million funding round in a go-public reverse merger (read: SPAC move) with Surfside Acquisition Inc., with plans to eventually list public shares on the OTCQB Venture Market, the lesser-known exchange for, fittingly, riskier investments. The merger occurred shortly after Deep Fission won a spot in the Department of Energy’s Nuclear Reactor Pilot Program to expedite the commercialization of nuclear energy in the US.

The Hole Truth: Most importantly, the fresh $80 million will be used to continue operations at the company’s pilot site in Parsons, Kansas, where it officially broke ground in December — and then, presumably, kept digging and digging and digging.