Bechtel Splits With TerraPower As Holtec Postpones IPO

Bechtel and Bill Gates-backed TerraPower are parting ways over the next phase of the Natrium reactor project in Wyoming, adding a construction headache to a sector already digesting Holtec’s postponed IPO.

According to a layoff notice reported by Washington Business Journal, the companies failed to reach an agreement and “have decided to move forward separately.” 

It’s a hard flip from April when Bechtel was celebrating mobilization and field execution at Kemmerer Unit 1. And just last month, TerraPower was still targeting completion in 2030 for the project, which is a 345 MW sodium-cooled reactor plus a molten-salt storage system.

Nothing has pointed yet to an actual halt in the construction efforts. But this isn’t exactly the cleanest spot to suddenly change contractors. The fact that the industry is in the midst of its greatest attempted comeback yet makes it significantly more awkward that the two leading nuclear parties are struggling to work with each other.

While there is a sufficiently large construction industry for TerraPower to choose a new partner from, the list becomes incredibly short when considering which EPC firms hold the actual talent and nuclear industry experience required to complete the project on time and on budget.

On the domestic side, Fluor is likely high on the list, as they are arguably the number two nuclear construction firm behind Bechtel. In April, it signed an agreement with X-energy for initial planning and project-definition work on the proposed four-reactor development at Dow’s Seadrift site in Texas.

If Bechtel does get outright replaced, though, a name higher on the list than Fluor is likely South Korea’s Hyundai Engineering & Construction. Under an August framework agreement, TerraPower selected Hyundai as their EPC contractor for up to eight future Natrium reactors, with completion, price and performance guarantees intended to support commercial financing.

Meanwhile, Holtec has supplied the week’s other unwelcome headline. As we covered in our Labor Day nuclear roundup, the company had marketed 50 million shares at $15 to $18 each, seeking up to $900 million.

Barely a week later, Holtec confirmed the postponement, citing deteriorating investor sentiment and uncertainty around data-center development. It intends to keep its SEC registration statement on file and says work on Palisades and its SMR program will continue.