Stack Capital Group Announces $5 Million USD Investment in X-energy
Toronto-based investment holding company Stack Capital Group Inc. has made a significant strategic move into the clean energy sector with a $5 million USD investment in X-energy Reactor Company, LLC. This investment targets advanced nuclear technology development, specifically focusing on next-generation small modular reactors (SMRs) and proprietary nuclear fuel solutions.
X-energy's Advanced Nuclear Technology Portfolio
Founded in 2009 and headquartered in Rockville, Maryland, X-energy has established itself as a leader in advanced nuclear commercialization. The company's technology portfolio includes several innovative solutions designed to deliver safe, reliable, and carbon-free energy:
- The Xe-100, their most advanced small modular reactor design
- XENITH, a factory-built micro reactor suitable for critical infrastructure, microgrids, and remote communities
- TRISO-X, a proprietary particle fuel technology that can withstand extremely high temperatures without melting
The company's development has been supported by substantial financial backing, including approximately $1.8 billion in private capital and up to $1.2 billion in funding from the U.S. Department of Energy through the Advanced Reactor Demonstration Program.
Strategic Positioning and Industry Support
X-energy has attracted significant industry support from blue-chip customers and stakeholders, positioning the company at the forefront of global nuclear deployment. Notable backers include technology giant Amazon, chemical company Dow Inc., Energy Northwest, Ontario Power Generation, and British energy company Centrica.
Jimmy Vaiopoulos, CFO of Stack Capital, emphasized the strategic importance of this investment, stating: "Reliable, carbon-free baseload power is becoming one of the most critical constraints on global economic growth, particularly as AI, electrification, and industrial decarbonization accelerate. Advanced nuclear energy is uniquely positioned to meet this demand at scale, and X-energy stands out as a category leader with differentiated technology, integrated fuel supply, and real commercial traction."
Stack Capital's Investment Strategy
Stack Capital operates as an investment holding company with a business objective focused on investing in equity, debt, and other securities of growth-to-late-stage private businesses. Through this structure, shareholders gain exposure to diversified private investment portfolios while maintaining liquidity through the listing of Common Shares and Warrants on the Toronto Stock Exchange.
The company's public structure allows it to concentrate on maximizing long-term performance through a portfolio of high-growth businesses that are typically not widely available to most Canadian investors. SC Partners Ltd. serves as Stack Capital's administrator and is responsible for sourcing and advising on all portfolio investments.
Vaiopoulos further explained the investment rationale: "We believe X-energy represents a foundational investment in the future energy infrastructure required to support both the digital economy and long-term climate objectives." This statement underscores the dual-purpose nature of the investment, addressing both economic growth demands and environmental sustainability goals.
The investment comes at a time when global energy demands are increasing dramatically, driven by artificial intelligence expansion, widespread electrification initiatives, and industrial decarbonization efforts. Advanced nuclear technology, particularly small modular reactors, offers a promising solution for providing consistent, carbon-free power that can support these growing energy needs while contributing to climate change mitigation.
