Terrestrial Energy Inc. (NASDAQ: IMSR) saw its stock price increase by 15% on Thursday, propelled by the announcement of a new contractual arrangement with the U.S. Department of Energy (DOE). This pact pertains to Project TEFLA, a pilot-scale production plant aimed at fabricating IMSR Fuel Salt for the company’s innovative nuclear reactor technology.
The agreement utilizes the Other Transaction Authority (OTA), a framework that allows accelerated approval processes for operational authorization at the TEFLA pilot plant. This plant’s deployment will specifically showcase the ability to produce fuel tailored for the Integral Molten Salt Reactor, a core technology under development at Terrestrial Energy.
This represents the second OTA agreement between Terrestrial Energy and the DOE, complementing a previously established contract concerning Project TETRA, the company’s test reactor initiative.
Project TEFLA focuses on the production of IMSR fuel using standard-assay low-enriched uranium (SALEU) containing less than 5% U-235 isotope, a standard crucial for safe and efficient reactor operation. The fuel generated through this pilot effort will underpin the functioning of the Project TETRA reactor, currently being developed as part of the DOE's Advanced Reactor Pilot Program.
Simon Irish, CEO of Terrestrial Energy, emphasized the significance of these initiatives, stating, "Projects TEFLA and TETRA provide essential components for IMSR plant design and operation, facilitated by an accelerated authorization pathway through Executive Order 14301. These efforts cover vital technological aspects from fuel manufacturing to reactor provision, underscoring our dedication to delivering viable, scalable nuclear energy solutions that bolster America's energy security."
The underlying agreement is part of the Fuel Line Pilot Program initiated by Executive Order 14301, targeting the resolution of domestic nuclear fuel shortages. The OTA mechanism offers the company flexibility by circumventing conventional federal contracting limitations, enabling rapid advancements in fuel production innovation.
Terrestrial Energy envisions its commercial IMSR facility to generate 822 MWth (megawatts thermal) or 390 MWe (megawatts electric), aimed at industrial heat applications and electrical power generation.
This development underscores significant progress in nuclear fuel production capabilities and reflects Terrestrial Energy’s strategic approach to collaborate with federal agencies to expedite deployment timelines for advanced nuclear technologies.