Gillette-Based Machinery Company To Build, Lease Tiny Nuclear Reactors In Wyoming

Cowboy State Daily ^ | April 24, 2024 | Pat Maio

[Red Badger]

Gillette-based L&H Industrial, a 60-year-old industrial machinery company in the coal-rich Powder River Basin, has partnered with nuclear technology innovator BWX Technologies as part of a blockbuster deal to launch a multibillion-dollar industry in the micro nuclear reactor field.

A Wyoming company with international clout that’s bolstered the state’s energy industries for decades is jumping into the nuclear business.

Gillette-based L&H Industrial Inc., a 60-year-old stalwart industrial machinery company in the coal-rich Powder River Basin, has partnered with nuclear technology innovator BWX Technologies Inc. (BWXT) as part of a blockbuster deal to launch a multibillion-dollar industry in the micro nuclear reactor field.

The partnership was disclosed Wednesday by L&H CEO Mike Wandler and Marcio Paes Barreto, managing director of a new L&H business unit, Evercore Energy, in an interview with Cowboy State Daily.

The plan is to build a one-stop shop in Wyoming for everything from manufacturing reactor vessels, specialized fences and electrical control panels to piping, wires and pouring concrete needed to build a containment building.

The partnership also has plans to provide consulting services, operate and lease energy generated from the micro-nuclear reactors.

“I decided a couple of years ago that my life’s purpose was to innovate energy, and that everything I’ve done up to this point has kind of been me practicing to help the world do this,” Wandler said. “And it’s important for national security.”

BWXT Advanced Technologies is a Virginia-based company developing micro nuclear reactors that produce carbon-free energy.

While BWXT has its own industrial base to build the reactors, Wandler said his $111 million in annual revenue business wants to take on some of the vendor business from the larger BWXT, which boasts a market capitalization of $8.6 billion.

“I’ve got plants all over the U.S. and in other countries, and it’s really hard to recreate the culture in Wyoming for manufacturing and repair elsewhere,” Wandler said.

Wyoming Culture “We’ve got this culture that we still want to do this stuff,” said Wandler of Wyoming’s vendor network. “Other places don’t want to do this anymore. They don’t want it in their backyard, and that’s fine. So, let’s do it in Wyoming.”

BWXT has already established a beachhead in Wyoming.

In addition to the partnership with L&H, BWXT is participating with the Wyoming Energy Authority to understand the state’s “supply chain” of nuclear technology businesses.

Some of the urgency to get the business going is growing momentum in the state for a budding nuclear industry sparked by Bill Gates-backed TerraPower to build a nuclear demonstration plant in Kemmerer, and billionaire friend Warren Buffet’s electric utility giant PacifiCorp looking to add reactors for his Rocky Mountain Power utility in Wyoming.

BWXT is at the center of TerraPower’s work and is helping in the engineering design of the 345-megawatt reactor being built across from the Naughton coal-fired plant in Kemmerer.

The L&H and BWXT partnership is pursuing a different approach with its reactor that probably wouldn’t hit the market until 2030 at the earliest, said Wandler.

L&H and BWXT are considering potential customers such as energy-starved industrial factories, or even super-sized data centers in the Cheyenne area that pull from a grid, or others located in other parts of the United States.

Laramie, home of the University of Wyoming with a newly created nuclear program, and Wyoming’s capital city Cheyenne, which is about 100 miles north of Denver International Airport, are on a short list to become the corporate headquarters and spot to build a factory to assemble components for this emerging business, said Wandler.

Elon Musk-like The partnership will provide a commercialized variant of a reactor based off a transportable one that BWXT is developing for the military, called Project Pele. That reactor is under development and getting tested at the federal government’s Idaho National Laboratory (INL) later this year.

The commercial reactors — called BWXT Advanced Nuclear Reactor (BANR) — would produce roughly 50 megawatts of electricity, enough to power and heat several mining operations in Wyoming’s trona patch in southwestern Wyoming or mineral mines elsewhere in the world.

In the interview with Wandler, the executive likened what Wyoming is doing with building a nuclear infrastructure to that of what billionaire Elon Musk did with the launch of his SpaceX company in 2002 to manufacture and launch advanced rockets and spacecraft.

“That is a process that we need to get through,” Wandler said.

“We’re a little bit early, but we did that on purpose, because this is almost like the space race” in the early 2000s to privatize the rocket launch industry, he said.

“I looked at that and said, ‘That’s never going to happen.” That’s crazy, right?” he said. “But Elon Musk got the lead position.”

INL is building close ties with Wyoming and other states for aggressive research and deployment of advanced nuclear plants.

The effort has coalesced around a push that the Department of Energy nuclear lab in Idaho Falls calls the Frontiers Initiative, an effort designed to help the United States stay competitive with low-emission industrial activity through leading-edge nuclear technology.

To date, stakeholders in Wyoming, Alaska, Idaho, Louisiana, North Dakota, South Carolina and Utah have joined this initiative focused on “nuclear energy first mover states,” said Steven Aumeier, senior adviser to strategic programs with the Idaho National Laboratory.

“Frontiers is what lit up talk of all of this,” Barreto said.

INL is one of the nation’s national laboratories that performs nuclear energy research for commercial and military applications.

Nearly two years ago, WEA signed a memorandum of understanding agreeing to collaborate on the research, development, demonstration and deployment of nuclear energy technologies with INL.

The initiative is touching all corners of Wyoming.

The partnership announced by L&H and BWXT is one of the first tangible signs that Wyoming is getting a leg up on the race to build micro nuclear reactors.

BWXT Technologies Director of Product Development Erik Nygaard talked with Wyoming energy insiders this week about the potential for micronuclei reactors in the Cowboy State. The company recently was awarded a contract to build a small reactor unit for Hitachi, shown in this illustration. BWXT Technologies Director of Product Development Erik Nygaard talked with Wyoming energy insiders this week about the potential for micronuclei reactors in the Cowboy State. The company recently was awarded a contract to build a small reactor unit for Hitachi, shown in this illustration. (BWXT via Facebook) Global Opportunities The emerging market of leasing to global customers who want to reduce pollutants in their emissions is valued at billions of dollars over the next decade, Wandler told Cowboy State Daily.

“We are not looking to build up and sell this business,” he said. “This is a matter of national security. We are behind Russia and China.”

Wandler has a vision of making Wyoming the “energy capital of the world,” thanks in part to the edge given to his business through L&H’s newly formed nuclear reactor business.

The Gillette headquarters of L&H already is at the center of the world’s coal industry, where the lion’s share of thermal coal gets mined and shipped to public utilities to burn in coal-fired plants throughout the nation.

At the core of the L&H business, given a name of Evercore Energy last fall, is becoming a distributor to global customers who want to lease the reactors.

Probably after the commercial reactor market is operational in the next several years, Wandler wants to raise $1 billion a year to get the cash flow for building the reactors from private investors.

L&H wants to raise equity with outside investors to “derisk” the business and shield parent L&H from any downturns in the future, said Wandler, adding that he personally owns roughly half of the privately held L&H.

A worker at L&H Industrial in Gillette works on a component for a large piece of machinery. A worker at L&H Industrial in Gillette works on a component for a large piece of machinery. (Renee Jean, Cowboy State Daily) It’s Evolving The Evercore business model is still in the early stages of development.

One idea is to build it like a practice used by large commercial aircraft leasing companies whereby they acquire jet aircraft from plane manufacturers and then lease them to airlines.

Leasing allows airlines to optimize their fleet size, respond to market demands quickly and avoid the risks of aircraft ownership. It also provides leasing companies with a steady revenue stream and the ability to manage their asset portfolio effectively.

“We’ll run the micro nuclear plant for them,” said Wandler of global customers.

One of the first things Wandler did last fall after setting up Evercore Energy was appoint Barreto as managing director to build up the nuclear services business from scratch.

Barreto was formerly a director of industrial development with the WEA and Wyoming Business Council.

Even the mayor of Gillette is interested in the L&H foray.

In February, Gillette Mayor Shay Lundvall said that he wanted to bring a components manufacturer and assembly factory for very tiny nuclear power plants to the Powder River Basin.

He said that discussions have begun about bringing a small nuclear plant factory to the city’s still-to-be developed Pronghorn Industrial Park, located near its sprawling 1,000-acre Cam-plex complex.

Wandler anticipates that much of the reactor inventory will be paid by private investors, with other funding sources coming from the military and Energy Department.

“We know reactors are five years away, but most of my customers can’t wait,” Wandler said.

Pat Maio can be reached at pat@cowboystatedaily.com.

[dfwgator]

Butt, butt, butt......China syndrome.....!😊👍



Ross Denton: Rodney, can you please tell us, how big is the president?

Rodney Dangerfield: Oh, he’s a big guy, I’ll tell you that, he’s a big guy. I tell you he’s so big, I saw him sitting in the George Washington bridge dangling his feet in the water! He’s a big guy!

Rosalynn Carter: Oh my God! Jimmy! Oh God!

Rodney Dangerfield: Oh, he’s big, I’ll tell you that, boy. He’s so big that when two girls make love to him at the same time, they never meet each other! He’s a big guy, I’ll tell you!

Rosalynn Carter: Oh no! Oh Jimmy! My Jimmy!

Rodney Dangerfield: I don’t want to upset you lady, he’s big, you know what I mean? Why he could have an affair with the Lincoln Tunnel! I mean, he’s really high! He’s big, I’ll tell you! He’s a big guy!

Rosalynn Carter: No! No! No!

Ross Denton: Rodney, thank you very much. You can go.

Rodney Dangerfield: It’s my pleasure. He’s way up there, lady! you know what I mean

[alloysteel]

There should be Small Modular Nuclear Reactors being set up and going online at the rate of at least one new one a week, if we are ever to decentralize and vastly expand our electrical power generation capability.

Gillette is a city in and the county seat of Campbell County, Wyoming, United States, and has nothing at all to do with razor blades.

[TexasGator]

“50 MW is enough to power 7500 people annually. “

MW is power, not time related.

The average home uses about 1200 kw (average, not peak). 50 Mw would supply about 30,000 homes or 41,000 averaged.

A LOT more than 7,500 people.

[ProtectOurFreedom]

The core of this power technology is the TerraPower reactor. The TerraPower site has this gem...

Celebrating Women in Nuclear Energy
March 7, 2024

We are immensely proud to acknowledge the critical role our female employees play in advancing our mission to create revolutionary advances in medicine and energy through nuclear innovation. During Women’s History Month, we are eager to shine a spotlight on the extraordinary women on our team who are pivotal to our daily operations and crucial to achieving our goals of fostering a sustainable, clean energy future and transforming the fight against cancer. Their expertise, commitment and imaginative approaches in the realms of science, technology, chemistry, engineering, mathematics, and operations are invaluable assets that propel us forward.

TerraPower recognizes the catalytic impact of diversity and inclusion within STEM fields. Our female engineers, scientists, project managers and leaders are the embodiment of innovation, providing a breadth of perspectives that enhance our collective efforts. Their contributions are not only essential to our success but also play a key role in establishing the legacy of environmental stewardship and energy resilience we aspire to leave for future generations. In celebrating their accomplishments, we reinforce our dedication to creating an environment where the talents and voices of women are acknowledged, valued and amplified.

To all the women at TerraPower: your passion, vision and diligence are foundational to our success. You are not just shaping the future of our company; you are also vital contributors to the global mission of achieving a cleaner, healthier and more sustainable world. Your involvement in advancing nuclear technologies underscores the significant impact women can have in STEM, serving as an inspiration for the next generation of female innovators and leaders. We thank you for your invaluable contributions to TerraPower and to the broader goal of developing scientific solutions for a better future.

There you have it. Keep TerraPower out of your towns!

[wally_bert]

I want atomic batteries like Batman had.

[Mouton]

Correct. We need one or two where we live.

[McGruff]

I’d buy one if it can power my house. Better than a backup generator.

[TexasGator]

After Babcock & Wilcox emerged from bankruptcy in 2006, that company and BWX Technologies (both subsidiaries of the McDermott International, Inc.) consolidated operations as The Babcock & Wilcox Companies[5] headed by President John Fees.

wiki

[OKSooner]

WCGW?

[TexasGator]

"The core of this power technology is the TerraPower reactor. "

TOTALLY FALSE!!

[Red Badger]

You’ll need one to charge your EV..........................

[TexasGator]

WCGR!

[bobbo666]

This is gonna be like Solyndra — designed to launder money into politicos’ pockets.

Nukes in the US are dead. Just like Germany, and for the same reason ; we allowed treehuggers to have power rather than simply a voice.

Mind, I’ve degrees in and decades of experience in domestic nuke. It is dead. It is part of the commie trash religion and there is no going back.

[hinckley buzzard]

While I’m sure you know this, others may not know that a new nuclear power plant began operation in Georgia just last Fall, and another one is scheduled to begin operations this year. Perhaps reports of nuke’s death are premature.

[ByteMercenary]

I often chuckle at the dichotomy that is causing exploding heads among the apostles and fanatics of the GND. They absolutely hate nuclear energy in any fashion or form but there is no way their utopian GND is going to come about without it.

I luv it !!

FJB, FBO

[Tell It Right]

MW is power, not time related.

True. But demand (mW) is relevant even if it's not the same as total power (mWh). Why? Because demand has to be there if all 7500 people turn on their AC at the same time while they're cooking, etc. Especially with families with all parents working while the kids are in school. In other words, appliance use can't be spread out in the middle of the day at random hours. Busy families all run their appliances at the same time when they get home from work.

[TexasGator]

“Why? Because demand has to be there if all 7500 people turn on their AC at the same time while they’re cooking, etc. “

I should my math. Many more than 7,500. Show your math.

[waterhill]

Oh, it could power your house and many others.

It’s at our finger tips. We cannot have it. The powers that be will not let us have it. They would lose all control, they hate freedom.

[reed13k]

Yep micro reactor in every small town would be amazing

[Go_Raiders]

Can’t remember ever hearing about enviro-nutjobs protesting anything in Wyoming.

And it sounds like their target customer base will be mining communities, which also seem to be able to somehow keep those nutjobs from aggregating in most cases.