Seaborg: A Nuclear Energy Start-Up

This case looks at Seaborg, a startup making floating nuclear reactors, that was founded by the entrepreneur Troels Schönfeldt and five other cofounders. The case deals with the startup’s development, and focuses on choosing a business model. Seaborg’s engineers invented a corrosion control unit that could be used in a Compact Molten Salt Reactor (CMSR) installed on a nonpropelled vessel they called a Power Barge). They had raised enough investment to build their own laboratory and hire 115 employees, but nuclear research was very expensive and by 2023 the company needed to raise more investment. Investors wanted to see that Seaborg had a viable business model, so Seaborg’s founders urgently needed to decide on a business model that would ensure the financial viability of their technology, and persuade investors of the model’s feasibility.
One option was to operate their own floating reactors and sell the energy, with the support of local investors in Southeast Asia. Another option was a traditional turnkey business model in which the company sold its CMSR Power Barges to energy generation companies. The case discussion is based on these two models and analyses which of the two would make Seaborg viable and profitable faster.