Terra Innovatum Global N.V. (NKLR) August 2026 Conference Transcript

Good morning, everyone. I'm George Genaricus, one of Canaccord Genuity's sustainability analysts. Thank you, everyone, for coming to our 46th annual growth conference here in Boston. We're very happy to have with us here the team from Terra Innovatum, an emerging, super interesting nuclear microreactor company. And with us from Terra is Massimo Morici, chief strategy officer, who has a presentation.

Please, go ahead, Massimo. thank you very much thank you everyone be here and discover really terra novatum and solo technology so the our mission is to create with a safety by design power unit I like to call it power unit something which is available all the time for long term to provide power and really a project which has been conceived to accelerate and speed to market in a way that could be easy to scale and to really evolve to create a larger potential power supply units. So the design of our project has been complete. we start already in January 2025 the licensing with USNRC we fully follow the normal regulator process so which is well in progress we are fully funded because the company at the SPAC received 130 million and this has been fully funded to execute up to the first-of-a-kind reactor which is expected to be in 2028 and so we are building this reactor as we speak because we already have secure the supply chain and the supply chain is based on supplying components which are already qualified so our design has been start with the concept to be extremely safe by design by physics and with the components which are available and commercially available and qualified so that's why we are very much aware about the cost that's why we are very much aware about the real possibility to execute the project in time that's why we are able to secure our supply chain. SOLO is a micromodular reactor designed to deliver 1 megawatt electric and 4 megawatt thermal in a compact 10 cubic meter and with an estimated levelized cost of energy of 0.07 cents over 45 years of operation within 97 uptime. this it's a very interesting module because it's it's we like to call it a power unit like a battery the unit in fact is inside the reactor is inside these the this concrete building which is 10 by 10 meter high 10 by 10 by 10 and this represents in fact as you see people around it represent really the the border okay so you can sleep close to this reactor and you will get less than one millisiever per year which is the the actual normal regulation on the radiation exposure so this is really unique because it means that we can claim in our reactor that there is no exclusion zone and the reactor can be build one close to the other so that's why we provide this image of scalability and placing multiple units one close to the other so I said I mean this saved by physics is very simple a nuclear reactor as you know one of the aspect is to exchange the heat on the reactor itself and to extract the heat all the nuclear reactor today you shut down you keep pumping water okay to cool down the reactor our reactor by physics it doesn't need really water because it's been designed with the helium on the first circuit for cooling and the heat extraction of the reactor is in terms of power is very low because the reactor is one megawatt electric the extraction it is only a few percent of the total of the total power so we are talking about 30 kilowatt 30 kilowatt is like I mean a 15 air dryer that you need to really exchange in the hair in nationally not natural conventional hair so we don't need really lots of circulation system and by physics has been designed completely safe so we factory build the component and we integrate the components so actually the scheme of the logic of our model is we buy components which are qualified and we do the assembly on site in a contract manufacturing place okay that's really one way to streamline all the activity and also is the only micro modular reactor which is using low enriched uranium. Low enriched uranium is the material which is today available and is today used in all live water reactors worldwide. You probably know that most of the projects which are being conceived in microreactors are not using low enriched uranium but using high enriched uranium. High enriched uranium is not yet commercially available and has to be produced but the terms of production is going to take long because obviously you need to build the first centrifuge and enrichment plant to produce it and then to use it as a fuel so we start today to say okay our design is using existing fuel we're not going to wait ten years we can use also aleo in our reactor and eventually will last even longer with aleo but we can deliver this today because the fuel is available today okay so that's an important aspect and differentiator of our that and actually simplify also the scheme of the generally the licensing of the micro reactor because it is not proliferant okay and as you may know the high enriched material is proliferant and is considered as a potential risk for proliferation so we want to deploy our reactor everywhere that's why we start with this concept okay so there it should not be any restrictions it's a versatile application because you can use it and scale and really multiply the number of reactor and eventually you can create a different scheme of operation with multiple units one close to the other okay you can scale the power and the fact that our first of a kind reactor is equal to the NOC so there is no change between our first unit which we're going to deploy you will see in St. Louis Illinois from what is going to be commercially available is exactly the same so this would be straightforward the day that we started the operation of the first of a kind we started the commercial operation of it so that's the scheme i mentioned that there is no emergency zone because i was referring to the fact that the reactor is safety and contained in this containment of concrete of 10 by 10 by 10. It's proliferant resistant because it's using low-end rich uranium. It's safety safeguards by design, runs 24-7 on the side and no hydrogen and no explosion or melting risk. We don't use water, we use helium, okay. Water is beautiful for, I mean, the light water reactor, a high power, but water is corrosive okay water create turbulence and fretting of the fuel assembly which are inside the reactor our flow is helium so we don't have any fretting no let's say mechanical stressing and then we don't have also the the problem of the explosions because we don't have hydrogen okay and when you have hydrogen then this can create the eventual explosion it's not our case so this is just I mean to remind the main advanced reactor program which are relying still on our R&D we are not in R&D we are in licensing the R&D is complete now we are just I mean progressing our licensing path and I mentioned about the fact that that the supply chain is secure because we base the design on the existing component. So we don't, let's say, develop a design and look for develop, I mean, the parts of it, OK? So we start from existing components qualified under the ASME standard international to be used and under the quality program for nuclear. So the licensing is well on progress. And the FOC is expected to be, at the end of 2027, commercialization on 2028 so interesting aspect the USNRC has been start to develop for the part 57 which is a new path forward for the licensing for micro reactor because the government I realized that they wants to really accelerate them in the micro modular reactor deployment part 57 is perfectly align with our design and it's facilitating the licensing path so it's expected to come out at the end of September probably would be by the end of the year and this will simplify the license in general but especially for our design it looks like the part 57 has been built based on our specification because we are a low-risk profile reactor we are a non proliferant reactor and we are one megawatt electric and the fork is a NOC, which means when we have executed the first of a kind, we can do any commercial site and we can multiply the number of units by site for the part 57. This would be a tremendous important impact for the deployment, also for data centers, for instance. This will facilitate the opportunity on a specific site when you have done the environmental assessment of it, then you can scale unit one close to the other so this would be an exerilation project in fact as I mentioned already the FOC is equal to the NOC so this is facilitating our progress in a commercialization and this would be facilitated by law by the part 57 in this case so we have secured the supply chain for all the components with our supply chain we'd not only secure the component for the first of a kind but you will also analyze with them the needs for the grow in terms of quantities so we are building with them the path forward for the commercialization which is very important to us okay we are talking about hundreds of units and so we need to be ready with the material and with the components there are no limits on the components and material lead time is basically today for the first of a kind below generally eight months in a regular production facility we expect to be within six months so this would be tremendously important because with the supply chain supporting the project so and anticipating the order to them they they will prepare, I mean, the elements which will be needed to deploy. So this has been complete, has been formally announced publicly, and now we are ready, for instance, investing in some machining tool to fasten the production, for instance, of the graphite, which is part of our reactor, just to give you an example. This is for the global development because it's non-proliferation. I want to step a little bit on this topic because it's so important, and the reason why we choose the non-proliferation, it's so important too. It's not obvious for everyone, but you need to know that low-end-rich uranium is really non-proliferant and is facilitating the deployment. if you want to deploy a reactor which is using LEO and is safe here by design we can do it even in Africa okay if you have iron rich reality you cannot do it you can do it only with countries which are weapon state country under specific agreement with United States so we are targeting commercially internationally the deployment of this reactor with no restriction okay by design and that's very important we have a strong traction on commercial activity we have already a memorandum of understanding for 200 units more than 200 units 4 billion pre-commercial commitments basically we sign a A commercial letter of intent with the Vulcan for the deployment of Solo was, I think, was announced a week ago. This is also an important aspect. We are really moving forward to the binding agreement as we speak. So this is really an important step. We are strongly believers that we can announce shortly the commitment for our customers as a binding. So this will be a tremendous, important impact. And our market is towards the infrastructure, obviously the utilities, where, I mean, with units between one and five units, we can support industrial factories. medical health care and data centers data center is read they're ready to when you have a technology ready data center is as you I think heard about it they are ready to invest a huge amount of money when the technology is ready okay we are the most advanced in the process of licensing you can go to the to the Adam Systems USNRC website you can see where we are in terms of licensing is a public information and then we think we will be the first to be able to deliver the first-of-a-kind unit and the markets however are very large we could probably technically saturate our capacity of production but we are looking in parallel to those four segments because they will believe they will give us an important presence in different segments and market. The first of the deployment site will be in Admiral Park, Illinois, Rock City. It's a limestone, as you can see from the picture, is a limestone, a very large site where inside this limestone there are miles of tunnels with deposits of foods and also the national archive for the united states they expect to implement also data center inside because of the cooling and this will be the first location where we have already signed a memorandum of understanding for 50 reactors and that site they expect to expand with the data center shortly so this is a strategic first location for us and is a perfect location to execute the first of a kind then we have signed an agreement with uvation for hundred reactors for data centers and we are talking shortly for some important project which are in progress so I think we will be able to evolve this memorandum of understanding to more binding commitments and obviously we we are progressing with our licensing which is today's one of the key aspect to execute them in the project then we also sign agreement with Amerisco and we establish a partnership with them for the deployment of multiple reactors in different sites which are for the US government but also for industrial site we signed an agreement for 50 reactors with them and ready to deploy they have lots of interesting engineering capability which could also be eventually useful for deployment of a reactor at the same time they are expert in energy deployment in DOE and DOD sites so as this is just a recap of the value propositions for the different segments which were I was referring so and but basically one common aspect to all of them is the scalability and the easy integration to give you an example for a data center if we put together multiple units if he wants to provide 20 megawatts electric we don't need 20 solos okay we will need only 16 solos which means 16 units by 1 megawatt because we will use a common turbine and a common turbine which will give us up to 20 megawatt electric plus the thermal which will be available eventually to do cogeneration so the scale in modularity give you the chance not only to be in the part 57 licensing and expand rapidly. But also, when you scale, you can optimize using and adapt turbine to do it. It's public information that we sign an agreement and also order with Becker and Hughes for the turbine. So this has been already secure for the supply chain, also the turbine. And this is well in place. and they also are working with us on the evolutionary steps for the turbine for the scale up in terms of nodes we call it solar nodes when you scale the units in terms of quantities existing cash expected to fully funded I said I mean I mentioned that we have been we've been fully funded that with the spark 130 30 million we have as of today 96 million and we expect 70 million to fund all the activity up to the first of a kind including all the material okay we are perfectly on track and actually we have more money than expected to complete this so which means we have also the possibility to anticipate even materials and more elements with our supply chain which is a perfect situation to be because we don't have to be founded at least for the next I mean three years important aspect of it our target is to get the order with the pre-payment and actually there are lots of positive signs for it because as you heard about for instance for data center they're really really ready to invest quite a lot of money even as prepayment if they have energy available so we are in a very good shape from a financial point of view and I thank you for the Thank you for the attention and ready for any questions. Thank you very much.

Thank you, Massimo. I'll take a seat next to you, maybe ask you a couple of questions. Do not want to say anything. You mentioned the multiple applications that your microreactor is potentially useful for. One that we've talked about in the past is mining specifically. But I'm curious, you have this PAR 57 that appears to be the most optimal pathway for regulatory approval for your reactor size, how leverageable is that to other geographies? Say there are mines on other continents that can use your reactor. How easy is it to take that, if it happens, when it happens, and then apply it to places in Africa, places in Latin America?

Very good questions, and thank you for that question, because it's really important. There is a strong attention worldwide to what is coming up with the Part 57 regulation, because this is a unique opportunity for some countries to get back into nuclear. Basically, to give you an example, Italy, the law, the decreed law has been approved by the Ministry Council, has been approved by the First Chamber, and is under discussion on the Senate, which probably this will turn with a positive vote with the law. At the end, then you need to have established a safety authority. And the Italian Safety Authority already signed an agreement with the U.S. NRC for getting the support from them to really prepare the licensing for micro-reactors, because it's never been done before. So there is a strong attention for all countries to what U.S. NRC is doing. I mean, many countries are signing bilateral agreement to facilitate then the possible implementation of the Part 57 in the specific countries. For what is specific Africa is a good question. I was in Africa a few months ago, and I was surprised because when, I mean, Africa has been signed agreement with Rosatom for deployment of larger reactor, many countries actually. But nothing is happening because at the end of the story, to deploy a reactor, which is even from support and finance by Russia, okay, at the end, they need to put on the table more than 1.5 billion. And this is, they're struggling with that, okay. So when they heard about our project, I was surprised the rest of the week. everyone was considering solo like the only possibility to to be implemented because they discovered what they discovered that this is a reactor which is non-proliferant which means this will be accepted by the International Atomic Energy Agency they discovered that this is easy to be financed because the reactor is cost 17.5 million okay for the first load 15 years is lasting 15 years and then they can also get the support to be implemented because of the regulator and so they can also sign agreement through the International Atomic Energy Agency to get the part 57 so for them is a perfect combination so many countries we are receiving this type of attention including countries in Asia for the same reason well looks like we're brought on time thank you so much that Appreciate it, Massimo. Thank you.